What is a virtual CFO (vCFO)?
A Virtual CFO (vCFO) is the CFO you have when you don’t need a full time CFO. A VCFO provides ongoing strategic financial support to small and medium sized businesses on an interim and part-time basis. Virtual CFOs are a trusted, strategic extension of your core team.
What do Virtual CFO’s do?
Depending on the needs of the business, Virtual CFOs can provide any number of ongoing or periodic services in support of the business. These services range from monthly action-oriented analysis, dashboards and reports, establishing and reviewing budgets and cash forecasts, implementing new financial and other processes and tools to taking on full accountability (but still part-time) responsibility for all of a business’ finance functions. Virtual CFOs are also often involved in strategic planning, partnership negotiations and fund-raising activities for a business whether via bank loans or through equity.
What don’t virtual CFO’s do?
Virtual CFOs do not provide basic bookkeeping services (data entry, bank reconciliations, paying bills, payroll) or the compliance / tax services and straight-forward profit & loss reporting which are typically provided by your in-house or external bookkeeper or accountant.
Why / when do I need a virtual CFO?
When businesses are smaller, they generally only require simpler financial services provided by a bookkeeper or accountant. As businesses grow or are planning to grow, their needs become more complex and owners and directors find they need the considered insight that an experienced CFO can bring to a business, alongside the sales & marketing and product knowledge that is typically already present.
Business owners often comment that their (basic) accounting system doesn’t provide them the information they need to make decisions, and that they need to financially explore options and set realistic plans and budgets to support their growth.
A Virtual CFO is a trusted, strategic extension to the core team to help bridge the gap between a bookkeeper and a full time CFO.
How is a virtual CFO different from a consultant?
A Virtual CFO provides ongoing, regular services helping the business achieve its goals, whereas consultants typically provide one-off project-based services. Through this regular interaction, a Virtual CFO will get to know your business intimately, being able to apply their knowledge to your unique situation because they know your business from the inside. A consultant may not have such an in depth knowledge of your unique circumstances.