Mei Expert

What do virtual CFO Services offer?

We'll cover some of the more specific deliverables below, but let's start with some of the broader benefits of virtual CFO services.

A CFO canidentify and manage bookkeeper /controller to produce reliable data and interpret the results, providing insight to help steer the ship toward your stated goals. The result is that you know exactly where, when, and how to focus your team and inform your stakeholders.

A CFO can be a much-needed sounding board, coach, or guide. Look for a seasoned veteran who you can trust, not merely someone to fill a role. In the end, you'll have a team member who knows your business and can help hold you accountable as you work to reach clearly-defined goals.

A CFO can position the finance function as a competitive advantage. If you're financially frustrated, chances are your competitors are too, but they're probably not reading this post and actively seeking a solution. An experienced CFO can help you cut waste, deploy cash efficiently, and find opportunities for greater production or expansion. With their help, you can be in a position to step ahead of the other organizations in your niche.

In addition to these more over-arching items, virtual outsourced CFO services almost always offer:

Identify key metrics and map out reporting to monitor
Interpret financial results on a regular basis
Manage annual budgeting process, development of annual strategy
Cash management & planning
Strategic planning

Virtual CFO services selectively include:

Fundraising. Virtual CFOs may create the financial story and can do some light pitching, but don't expect them to spend six months on planes pitching VCs or banks all over the country.
Manage finance-related IT systems. Don't expect the virtual CFO to manage IT staff, company network, internet access, security, or CRM/ERP systems.
Participate in board meetings. Virtual CFOs may prep and coach the CEO and can be requested for a presence in meetings.
Mergers and acquisitions. This usually consists of light advisory and analysis help, but don't expect the provider to take on a months-long due diligence project on a moment’s notice.

Your organization may not be in need of these services at present, but if you are or anticipate being in need, it would be wise to ask about these offerings up front.

Virtual CFO services usually DON'T offer:

Shouldering burden of all things legal
Managing HR/Admin (benefits, insurance, hiring/firing of non-finance staff)
Daily, in-person participation with executive management team

Keep in mind that some virtual CFO services group CFO-level insights with bookkeeping and controller services, essentially delivering an outsourced finance department. If your provider offers CFO services as a stand-alone option, remember that you will not be receiving:

Optimized workflow
Transaction entry & classification (recall the adage: garbage-in, garbage-out)
Accounts receivable
Accounts payable
Payroll
Bank account reconciliation
CPA support for year-end tax and audit
Financial control implementation and oversight