A virtual CFO performs the same functions as a full-time, traditional CFO and their team — but at a fraction of the cost. They usually work with multiple clients rather than working full-time for one employer. Often, businesses will seek out a virtual CFO if they don’t have the budget for a full-time employee (or enough work to justify a 40-hour week), but still need help with financial strategy – forecasting, cash flow management and more.
The difference between a virtual CFO and a traditional bookkeeper is a consultant relationship. Virtual CFOs don’t just meet with you once a year to do your taxes. Virtual CFOs offer advisory services and help you make informed business decisions. They help you plan for business goals by using cash flow forecasts and financial documents to run scenarios and make strategic plans to achieve said goals.
A virtual CFO is on a mission to help you achieve all your business goals and increase profitability. That means that even tax planning becomes a strategy.
The best virtual CFOs work in a team that includes a tax expert, as well as other accounting support, such as a staff accountant. With the help of their team, a VCFO will take on tax planning and input that information into a financial forecast. Why? Informing clients about their tax obligation helps them plan by finding ways to reduce that tax burden and preventing surprises that will put unnecessary strain on a small business and sideline business goals.
While virtual CFOs can elevate standard services like tax planning to ensure a client’s financial success, these financial professionals also provide support in ways not typically seen by CPA firms.
A virtual CFO can help prepare you to attract the highest possible offers, go through due diligence in a timely manner, and make your exit match your goals. It all starts by ensuring your financial records offer visibility into your financial history and a roadmap for your future. That’s the best way to ensure a smooth transaction with a high multiple of EBITDA.
During high growth periods, strategic financial advice is a must-have: You’ll need to assess risk and plan your cash reserve accordingly and be ready to make fast decisions, ideally with data rather than your gut.
We recommend businesses keep 10-30% of annual revenue in cash on hand and a line of credit of equal size. That’s something you can build to but it’s important to set a target so you know how much to put aside as you go.
In times of uncertainty whether due to high levels of change within your business or in the economy – it becomes even more key to understand if your team is the right size for the work that you have coming in. No one wants guesswork when it comes to taking care of their people or their clients. A dynamic forecasting process that takes into consideration capacity and sales pipeline will make sure you can meet payroll and meet market demands.
We’ve been using their accounting and bookkeeping services for over a year now, and it has made a huge difference in how we manage our finances. Accurate, prompt, and professional.
Handling GST used to be stressful, but their team made it completely hassle-free. From timely return filings to keeping us compliant with all regulations, they’ve been a true support system. I can now focus on my business with peace of mind knowing our GST is in expert hands.
They made our company registration process so easy and stress-free! From choosing the right business structure to getting the incorporation certificate, everything was handled professionally and quickly. Highly recommended for any startup or entrepreneur looking to begin their journey the right way
© 2025 Developed by Digitally Vibed
© 2025 Developed by Digitally Vibed