Service
A virtual CFO reads the numbers. Do you have numbers to read?
A virtual CFO is a part-time senior finance person who helps you plan and decide. It is a poor buy if your books are behind. Fix that first, and this role can be useful.
How the roles differ
Titles vary, so ask what someone actually does.
| Role | Question it answers | Typical output |
|---|---|---|
| Bookkeeper | What happened? | Entries and reconciliations |
| Accountant | What do the accounts show? | Financial statements and filings |
| Virtual CFO | What should we do next? | Cash forecast, budget, margin analysis and a recommendation |
| Auditor | Are the accounts fairly stated? | An independent report. This is a separate role and should stay independent |
Signs you may be ready
- Books are current, and closed each month
- You make decisions on hiring, pricing or expansion that depend on figures
- Cash feels tight even in months with good sales
- A bank or investor expects forecasts
- You have several products or locations, and cannot see which make money
Signs you are not ready
- Your books are months behind. Start with bookkeeping
- You want someone to "sort out GST". That is compliance work
- You want a loan arranged. Ask what they will actually do
- You will not act on what you are told
What you should receive
- A monthly one-page review: sales, margin, cash, and what changed and why.
- A rolling cash forecast: 13 weeks is a common format, showing when money may run short.
- A budget against actuals, with explanations of large differences.
- Unit economics: what you make per product, customer or location.
- A short meeting, with decisions and owners written down.
If you only get a long pack with no recommendation, you are paying for a report.
Limits to keep in mind
- A virtual CFO cannot promise profits, funding or valuations.
- Decisions and legal responsibility stay with the owners and directors.
- Part-time means part-time. Ask how much attention you get, and how quickly they respond.
- Investment or securities advice may need separate registration, so ask before relying on it.
- The role does not replace filings, audit or legal advice.
Questions to ask
- Show me a redacted example of what you send a client like me.
- What decision did your work change for a client, and how?
- Who actually does the work: you, or a junior?
- What do you need from my team each month?
- How will we know within six months if this is worth it?
What affects the fee
Hours or scope, business complexity, number of entities, the quality of your current books, and how often you meet. Ask for a defined scope, the fee and exit terms in writing.
Considering a virtual CFO?
Tell us your revenue range, what decision you face, and how current your books are.
