What Is a Virtual CFO — And When Your Business Actually Needs One  

If your business is growing but your financial planning is still reactive, you’re likely leaving money on the table. While a bookkeeper or controller may keep your financials accurate and in compliance (essentially creating a sound foundation), they aren’t necessarily skilled in financial growth strategies such as scenario planning and cash flow forecasting. This is where a Chief Financial Officer comes in.   

However, small and medium-sized businesses often don’t have the funds available to hire an in-house, traditional CFO – or the work to keep them busy. Enter the Virtual CFO (VCFO): a fractional strategic partner who blends financial leadership with execution, at a cost savings.   

Key Takeaways   

  • A Virtual CFO bridges the gap between accounting and strategy, handling both execution and insight.   
  • Perfect for small businesses in growth stages who need better forecasting, dashboards, cash visibility, and decision-making support.   
  • When you choose a VCFO, make sure the service scope includes industry and company KPIs, modeling (such as short-term and long-term cash flow forecasting and scenario planning), regular meetings with existing accounting staff and leadership, and established accounting systems.  

What Is a Virtual CFO Exactly?  

A Virtual CFO (sometimes called a fractional or outsourced CFO) is a financial advisor who provides strategic and operational financial leadership to both small- and mid-sized businesses. Virtual CFOs deliver all the functions of a full capacity accounting department with CFO-level insights, but on a remote, part-time basis. You get both tactical work and strategic clarity at a fraction of the cost. Virtual CFOs typically serve multiple clients (rather than being tied to one company.)  

What Does a Virtual CFO Do?   

A Virtual CFO is on a mission to help you achieve all your business goals and increase profitability: Think of them like a financial sherpa who advises you on how to get your company from where you are today to where you want to go, as directly as possible. While Virtual CFOs elevate standard accounting services like tax planning and back office accounting to ensure a client’s financial success, VCFOs provide support in ways not typically offered by bookkeepers or CPA firms.   

One example is through road mapping. To create a roadmap, VCFOs first identify their client’s goals. Then, working backwards from said goals, they create a path (or paths) forward using industry KPIs and benchmarking data. After a Virtual CFO has identified a sustainable roadmap, they take on several finance functions including:   

VCFO Service What It Means for Your Business 
Accounting Services + Financial Reporting Backbone Ensures clean financial statements & financial analysis, budgeting, chart of accounts consistency, consolidation and system setup — eliminating data noise. 
Cash Flow Management & Forecasting Builds rolling forecasts (both short-term and long-term) and monitors cash runway to avoid surprises. 
Metric/KPI Definition & Dashboarding Identifies the metrics that truly drive your business and builds dashboards you can actually use. Incorporates both companywide and industry-specific KPIs. 
Scenario Modeling & Strategic Planning Simulates “what-if” scenarios (hiring, pricing, investment) so you can test decisions before executing. 
Performance Review Cadence & Accountability  Structures regular reviews, course corrections, and pushes for accountability — not just reporting. 
Liaison & Alignment to Tax / Compliance / Audit  Coordinates with your tax, audit, or compliance team so advisory and execution align. 
Scaling & Process Improvement  Optimizes workflows, introduces automation, and helps you scale your financial operations over time. 

Essentially, once the roadmap exists, they sit next to you in the passenger seat, helping you see as far ahead as possible and navigate roadblocks, by turning your information into insight and, ultimately, decisions,  

By offering financial visibility through models, dashboards, and scenario planning, a Virtual Chief Financial Officer helps business owners make data-driven financial decisions rather than relying on intuition. Your VCFO also optimizes every part of your business’s finances to meet and exceed key metrics, hitting business milestones faster.  

The Problems Virtual CFOs Solve  

The Problem  

Many growing companies experience similar symptoms:   

  • Not knowing how much cash they have for current needs, potential crises and obstacles, and for future endeavors  
  • Forecasts built in spreadsheets, disconnected, or rarely updated   
  • Lack proactive financial guidance — issues are noticed after the fact   
  • Unable to connect financial data to strategic decisions (hiring, pricing, expansion, etc.)   

The Solution  

A Virtual CFO addresses these gaps using forecasting based on clean books and real-time dashboards incorporating needle-moving KPIs. Financial functions move from reactive bookkeeping to forward-looking, business growth insights, empowering business owners to use data to inform growth initiatives.   

Because these financial professionals work with multiple clients and a team of collaborators from diverse experiences and perspectives, 

  • There’s rarely a problem that’s never been seen before. A Virtual CFO has probably encountered your exact challenges and engaged in a range of solutions. If they’ve never seen it before, someone on their team certainly has.  
  • You can hire a fractional CFO with specific industry experience. You get insight into best practices that will help you elevate your unique business to the next level.  

When to Bring on a Virtual CFO   

The decision to hire a bookkeeper, Virtual CFO, or a full-time CFO comes down to business needs and company scale.    

You might not need a Virtual CFO if your finances are simple and volume is low. This generally means that your business is under $2 million in annual revenue. If this sounds like your business, a bookkeeper or traditional CPA firm will be more cost-effective.   

However, it’s time to consider a VCFO when:   

  • You’ve moved beyond $2M in revenue or are rapidly scaling. 
  • You struggle to whittle down which metrics matter for business growth. 
  • You spend too much time analyzing past data, not planning for the future.   
  • You need strategic guidance and financial management but don’t yet have a full finance team.   
  • Your business has multiple product lines, high fixed costs, or volatile cash flows, and your business requires financial discipline, flexibility, and visibility.   
  • You rarely have enough cash on hand to overcome obstacles or take advantage of opportunities.   
  • You aren’t able to hit industry- specific profitability metrics.   
  • You aren’t sure how to appropriately staff your business for current and future initiatives.   

Experienced, full-time CFOs command high salaries. By one estimate, the median CFO salary is $440,000+, not including vacations, bonuses, and other benefits. For businesses making beyond $40 million in revenue, an in-house CFO and accounting team will likely be a justifiable option (due to scope of work). That gives you a ballpark of whether it’s in your budget to hire a full-time CFO versus a virtual or fractional CFO. 

Quick Decision Guide: 

Feature Virtual CFO In-House CFO 
Cost model Subscription / fractional Salary + benefits 
Flexibility Scales up/down with your needs Fixed cost / overhead 
Access & bandwidth You get regular access scaled via subscription You control allocation internally 
Execution + oversight Combines strategic insight with execution support May require additional staff to execute 
Ideal for Growing businesses not ready for a full finance staff Larger and more mature organizations 

What You Can Expect from a VCFO Engagement  

Are you wondering what the day-to-day (or week-to-week) reality of working with a Virtual CFO is like? While it might seem that working with a Virtual CFO will be complicated and time-consuming, Virtual CFO services are meant to streamline your financial tasks while making rapid progress towards business goals. Engaging with an Anders Virtual CFO is broken down into 6 simple steps:  

  • Onboarding & Diagnostic Phase: Assess your existing financial tools, data hygiene, gaps, and objectives.  
  • Forecast / Modeling Buildout: Establish a rolling forecast, using scenarios to test business levers.  
  • Metric / Dashboard Design: Determine your core metrics (e.g. cash runway, margin, growth rate) and build a dashboard.  
  • Regular Performance Reviews: Monthly or bi-monthly check-ins to compare forecast vs actual cash position, pivot financial strategy, and hold accountability.       
  • Quarterly Strategic Planning: Reassess assumptions, adjust plans, and align on resource allocations or growth pivots.
  • Ongoing Execution & Optimization: Integrate improvements, automate processes, refine models, and evolve as your business changes.   

What Makes Anders’s VCFO Services Unique  

There are many Virtual CFO and fractional CFO service providers. However, when making the decision on the best service provider for your business, we recommend considering the following:  

  • Does your service provider allow you to scale service offerings up or down as necessary for business needs?  
  • Will your service provider offer a recurring model or one-off engagements only?   
  • Will your service provider offer a strategic/operational partnership rather than financial advice alone?  

Anders VCFO services are offered on a subscription basis, meaning you can scale services up or down as your business needs change. We also partner with your executive leadership team as a strategic partner working as one with your team to reach business goals. Our team operates with a “boots on the ground” approach to optimize every part of your financial processes to make a quick impact.   

The Bottom Line  

A Virtual CFO is not just a “luxury add-on.” It’s a transformative upgrade in how you make decisions—turning reactive accounting into strategic foresight. With Anders’ VCFO services, you gain a financial sherpa who doesn’t just point the way, but helps you climb — with execution, consistency, and alignment at every step. The financial clarity and accountability built into the engagement help you scale intentionally, not haphazardly.  

If you are looking for guidance to invest in, expand, and grow your business, our booklet, The Role of Dynamic Forecasting in Ensuring Business Growth, provides you with an actionable guide to reach your business goals. Download a free copy below. business growth plan. 

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