GREAT 28 IDEA: Hire a Virtual Chief Financial Officer

Fourteen years ago, while working as a chief financial officer, a friend introduced Ellen Woods to Tommy Davenport, who was also working as a CFO. Frustrated by only being able to work with one or two companies at a time, they started discussing how they might leverage their skills to help more companies. That's how Virtual CFO was born. The company now has about 100 employees, 1,500 clients, and offices in Dallas, Austin, Houston, Seattle, and Denver. In addition to providing bookkeepers, controllers, and CFOs, the company has a division to help companies recruit permanent financial employees and executives.

The company has flourished by offering a variety of professionals who can determine what kind of help the company needs and provide “a slice of the right level of (financial) expertise,” said Wood.

So when should you consider hiring a virtual CFO?

“If you don't have a CFO on your team, you need someone to do pro forma projections and be able to tell your financial story to make it believable,” said Carol Nichols, a veteran VC who does business development for Virtual CFO.

“Fractional CFOs,” earn between $55 and $250 an hour, depending on their level of expertise. Small companies may just need a controller two days a week. They may later hire a temporary CFO to help with strategic transactions.

“Our concept allows the company to get the right person at the right time,” Nichols said.