Virtual CFO Services

Growing service-based businesses often reach a point where they need professional financial advice, but can't afford a full-time CFO or controller.

Our Virtual CFO service teams you up with a Certified Public Accountant (CPA) who works with you to help guide your business to success.

Our Ideal Customers

Our bread and butter is working with the following types of service-based businesses:

  • cpa firm web developmentWeb Design Agencies
  • Marketing Agencies
  • Design / Branding Agencies
  • Advertising Agencies
  • Software Development Companies
  • ...Any other service-based business

The cost of hiring a full-time CFO can range from $120,000 to over $200,000 per year plus bonuses and benefits. Our Virtual CFO services provides you with experienced support at a small fraction of that cost.

Questions We Can Help You With

Here's a sample of some of the more recent questions and challenges we've helped our clients with:

  • Would you release tax reserves if your profitability fell dramatically inside a year?
  • If you have an employee who is both an admin AND a producer, how would you record their payroll?
  • What's the best way to record sales commissions?
  • How do you recommend charting owner's compensation when there are multiple owners that are also part of marketing and production?
  • How do you balance having a healthy amount of cash yet avoid paying major taxes on that cash at the end of the year?
  • Do you see a common percentage of overall costs usually spent on producers vs. admin?
  • How should we recognize revenue for a large, multi-month project?

How Does It Work?

We offer a transparent pricing model that adds structure to our relationship with you, your other company shareholders, and your team.

We've got three different value tiers:

  • TRANSACTIONAL - tax returns, strategic planning and forecasting
  • CONTROLLER - above, +handling accounts payable & receivable, +more detailed forecasting
  • VIRTUAL CFO - above, +bank/financing relationships, +KPI tracking

The relationship works best if we are part of your weekly director meeting. We often provide a 15-minute cash update or set aside time to chat about the company's finances. Joining these regular meetings with your directors also gives us get a good understanding of your company and culture, and helps us stay up-to-date on current events.

After an initial onboarding period, here's what a typical month could look like:

  • WEEK ONE - invoicing meeting
  • WEEK TWO - books are closed + forecasting meeting + financials/KPIs
  • WEEK THREE - follow-up projects
  • WEEK FOUR - follow-up projects

We are always available anytime during the month for questions, calls, impromptu meetings, etc. We find that this schedule works best for most clients, but it is definetly tailored to fit each client.

Also, if we are paying bills as part of the engagement, we will meet weekly for about 15-30 minutes to go over cash flow for the next 2 to 6 weeks. This is generally conducted with an individual team member, not the entire director team.

Here's what you get with our Virtual CFO service:

  • More time to focus on new services, new customers and other core business issues. Let our Virtual CFO focus on the numbers and you can focus on the business.

  • Better understanding of the financial side of your business, so you have fewer surprises and more control over the money.

  • Improved decision-making capabilities from clearly seeing the hard and true numbers of your business.  Our clients typically meet with one of our Virtual CFOs on a weekly basis with a one-hour predetermined weekly meeting.

  • A readily available sounding board to help you with those tough business decisions and help you clarify your business plans. No questions are off limits.

  • The comfort from knowing that a professional is overseeing, protecting and constantly improving the financial side of your business.

  • A professional who establishes strong financial controls in your business to reduce employee theft and increase profits.

  • Training and managing your accounting staff. We can be your back office staff, or we can manage your staff for you.

  • Improved quality and timeliness of financial information. All financial reports and Key Performance Indicators (KPIs) are presented prior to the 15th day of the closing of the month.

  • Budget preparation and monitoring are performed by our Virtual CFO on a monthly basis. Forecasts are updated to reflect how actual results impacted them.

  • Profitability analysis by service or product line. Which products should we focus our sales efforts on? Where should we increase our margins?

  • Tax planning is extremely important for a growing business.  Our Virtual CFO team monitors your tax situation to ensure funds are set aside for taxes, quarterly payments are made, and there are no surprises at tax time.

If that is not enough, our Virtual CFO Service also provides the following:

  • Cash management, the key to financial success. Our Virtual CFO team's goal is to build a cash reserve equal to 10% of your annual revenue if you are a service company, or 10% of your gross profit if you are a manufacturing company.  How much stress would that remove from your life?

  • Trend analysis. How is your company performing compared to the industry, to the forecast, to prior periods? Our Virtual CFO team will break that down for you.

  • Assistance in defining long-range plans and the quantification of goals.

  • Liaison with bankers, attorneys, vendors, insurance agents, etc.

  • Assistance in obtaining financing from banks, including assistance with negotiations.

  • Review/negotiation of insurance policies.

  • Development of company accounting procedure manuals.

  • Analysis of equipment purchases, expansions, etc.

  • Mergers and acquisitions assistance

  • Custom designed collection policies and procedure

The list is really endless on what a Virtual CFO can do for you and your company!

Articles Published on Medium

How $10 Can Net You An Extra $300,000

Two of the biggest problems I see with service-based businesses are underpricing and a lack of a proper cash reserve, both of which I wrote some thoughts about in this Medium article. Enjoy!

READ: How $10 Can Net You An Extra $300,000

Want to Add Recurring Revenue Into Your Services-Based Business? Here’s How.

Recurring revenue transformed our (and many of our clients') businesses. In this article, read about three key things you'll need to embrace when bringing recurring revenue into your company.

READ: Want to Add Recurring Revenue Into Your Services-Based Business? Here’s How.

Forecasting? You're Doing It Wrong.

Most companies employ a bookkeeper or accountant who looks at past performance to forecast what the company’s next month, quarter, or year will look like. And that’s fine…but it’s not enough.

READ: Forecasting? You're Doing It Wrong.

The Art of Cash Flow: Tackling the Lifeblood of Your Business

I’ve spent the better part of 15 years as a Virtual CFO, helping service-based businesses boost their financial health with stronger forecasting and cash flow management. In this Medium article, I tackle the subtle art of cash flow, the real lifeblood of your business.

READ: The Art of Cash Flow: Tackling the Lifeblood of Your Business

The Future of the CPA Firm in the U.S.

Our take on what the CPA firm of the future will look like, taking a look at the web design industry as a basis of comparison.

READ: The Future of the CPA Firm in the U.S.

Did you know that we offer flat-fee pricing?