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A Money-Making Movement: Virtual CFO Services

What Are Virtual CFO Services?

What is a Virtual CFO?

A virtual CFO, sometimes referred to as a fractional CFO, is a business or individual that provides virtual CFO services (did you see that one coming?). Typically, they work in a remote and/or part-time fashion to supervise the financial health and well-being of a business. Virtual CFO services are a relatively new phenomenon that allows small businesses to benefit from CFO support, that they wouldn’t normally be able to afford. 

Generally speaking, virtual CFO duties will likely vary depending on each business, and its specific needs. But you typically expect a virtual CFO to: 

  1. Handle Traditional CFO Duties
  2. Monitor Financials
  3. Offer Financial Insights & Guidance 
  4. Manage Account Ledgers

Proactive Accounting In The Modern World

We often preach about proactive accounting. If you haven’t heard us talk about it before, read more about its principles and benefits here. However, it can be reduced to this: stop relying on referrals; start taking advantage of modern technology to proactively reach out to your dream clients. 

Adding virtual CFO services is a great example of proactive accounting. Accounting pros, that recognize the opportunity here and take advantage of it will reap the rewards. 

The accounting industry has gone through some tumultuous changes recently, and not exclusively because of COVID-19. Every year, more and more firms are added to the market. And every year, the value of compliance, tax, and basic bookkeeping services are driven down. As a result, many accounting pros are finding it harder to attract their dream clients. But, that’s only if you’re offering basic services. If you’re a proactive accountant, you’re already looking for ways to make your firm stand out. Utilizing cloud technology to better serve your dream clients is a golden example.

Why Should You Add Virtual CFO Services

Between cloud technology and easy-to-use automation software options, many of the time-consuming and intensive tasks required of a virtual CFO have been diminished. But, that isn’t the only reason to consider adding virtual CFO services to your business. Here are a few others for you to consider. 

    1. Stop relying on deadline-driven services as the center of your business 
    2. Provide consulting-based services
    3. Keep your client’s goals front of mind. 
    4. Earn a better understanding of the total financial picture of a client’s business. 
    5. Offer more meaningful insight into your client’s business goals. 
    6. Predict and manage problems proactively. 
    7. Build trusting relationships with your clients. 

Additionally, adding these lucrative services can make your expertise more available to small businesses. Small business owners might not have room in their budget for a full-time CFO, but they still need their help to make informed financial decisions. Offering fractional CFO assistance allows them this opportunity and gives you the chance to grow with their business.

How to Offer Virtual CFO Services

accounting services

Offering virtual CFO services helps you better connect with and understand your clients. It’s also another opportunity for you to increase your revenue stream, without adding too much work to your plate. How do you offer virtual CFO services?

The most significant barrier for your clients is a lack of knowledge. The majority of your clients likely aren’t aware that their accountant can help them with more than compliance and tax services. The first step is to simply offer and explain the benefit of these services to them. Keep in mind, that initially, some clients may turn you down. If this is the case, you can add virtual CFO services to your value ladder, and move them up at a later date. 

Offering virtual CFO services works best for mid-sized firms with a few employees. However, if you’re a one-person team, you might consider offering virtual CFO services exclusively. You won’t be solely driven by deadlines, and you can directly control how much work you take on.

Tech & Software To Support Fractional CFO Services

A clear, well-communicated offer is a great place to start providing fractional CFO services, but you’ll need technology to support it. Cloud technology is an obvious partner for this lucrative venture. With it, you can view and manage your client’s financials in real-time, wherever you are and whenever you need.

New accounting technology allows you to assert your expertise digitally, and to build a trusting relationship with your client. But the bottom line is that it is essential for a virtual CFO to have functional & reliable technology to support their services. 

Collaborative Softwares

This online service is most helpful when working with a team. Trello is an internal project management software, that allows you to manage your workflow whenever and wherever. You can check out our full review and how the Dream Firms team uses it here.


Whereby is a free Zoom alternative, that offers many of the same features as the paid version of Zoom. You can read our full review and tutorial here, but this is our top suggestion if you don’t want to pay for the upgraded version of Zoom. It has unlimited one-on-one meetings and group meetings for up to 45 minutes.


Zoom is an easy-to-use video conferencing software. There is a free version, however, there are meeting time limits and it doesn’t come with cloud storage for recording. If you want to use Zoom, we recommend you pay for the Pro or Business versions. 

Payroll & Accounting Software

There are endless accounting and payroll softwares to choose from. Chances are that you already have one you prefer. If you’re transitioning to a virtual CFO or adding virtual CFO services, look for cloud-based accounting tech so you can work from anywhere and a wide range of integration potential, so you can rely on automation to save time. If you’re just starting out, look for something simple and intuitive. If you are further along on your fractional CFO journey, software with additional capabilities might serve you better. 

New accounting technology allows you to assert your expertise digitally, and to build a trusting relationship with your client. But the bottom line is that it is essential for a virtual CFO to have functional & reliable technology to support their services. 

The Time Is Now

cpa work from anywhere

If you’ve been entertaining the idea of offering virtual CFO services, consider this your green light. The time is now and the atmosphere has never been better. More advanced and secure tech is introduced every single day, allowing you to successfully serve your clients digitally.
Virtual CFO or Fractional CFO services provide new opportunities for you and your prospective clients. You can work with more freedom and fewer deadlines. And, small business owners now have the ability to benefit from CFO services, even if they don’t have the budget for a full-time CFO. Virtual CFO services may not be right for every firm or every niche, but if it feels like it would fit with your dream firm, now is the time to get started. 

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This Post Has 2 Comments

  1. Edgar

    How would I be able to offer virtual CFO services if I have never done it before?

    1. theproactiveaccountants

      Hi Edgar, thanks for the question! We’ll be publishing an entire piece on this soon. But, in summary, the first step to offering virtual CFO services is to move to a cloud-based accounting system and reframe your service scope to be primarily consulting.

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