What Does a Virtual CFO Do?

Nov 30, 2020

If you have a growing business you’ve probably started to notice a need for someone to manage your company finances and growth. For new CEOs, understanding the right steps to take in these positions is extremely difficult and can often lead to stagnancy. 

The good news is a Virtual CFO is the solution to these problems, but we understand that not everyone knows what a Virtual CFO is. In this blog post, you’ll understand what  Virtual CFO is and the services they typically provide. 

What is a Virtual CFO?

The chief financial officer (CFO) has an equally important role to fill. Responsible for managing the company’s finances, the CFO’s duties include tracking cash flow, analyzing the company’s strengths and weaknesses, and financial planning. Because CFOs have skills and expertise in finance, they ensure that a company’s money is being managed responsibly.

What Services do Virtual CFOs Provide?

The services that a Virtual CFO provides are typically based on the firm, the client’s business size, and the needs of each individual business. A Virtual CFO will usually offer different packages depending on the business they are working with. Some of the lower packages are solely transactional-based and cover services such as traditional accounting tasks like preparing your monthly financial statements –including balance sheets, industry financial comparisons, and more.

A mid-level Virtual CFO package might include a controller service. This is performing tasks like support for tax returns, strategic planning, accounts payable and receivable, and detailed forecasting—all at the fraction of the cost of a full-time Controller. This can also include strategic cash flow management and dynamic forecasting.

A high-level Virtual CFO package is the best option considering the number of services included in one like this. It includes everything in the transactional and controller packages but it’s as if you’re hiring a full-time CFO, without the need to pay them a salary and benefits. For growing businesses that are ready to scale and get serious about their finances, this is for you. 

Where to Find a Virtual CFO

There are a plethora of Virtual CFO agencies and firms looking to serve your businesses’ unique needs. One Google search and you can probably find thousands offering similar services, however, there are some key factors to watch out for. 

When looking for a Virtual CFO you want a firm that has years of experience in serving a business in your specific industry. This is crucial considering each industry has different needs, taxes, and financial modeling. You’ll also want to look at their previous client testimonials to see what others have said about their experience. This is extremely important when vetting Virtual CFO’s because of the amount of responsibility they’ll hold in your business.

If you’re looking for a Virtual CFO firm that has over 20 years of experience in a variety of industries, we’d love to get in contact with you. Our package sizes vary depending on your business size and specific needs.