CFO

[Michael Barbarita]

Has anyone ever defined what a virtual CFO is? Virtual CFO appears to be a highly searched term on Google. I have never seen a definition. I have never even seen a Wikipedia definition which is to my understanding the authority of definitions. As a Part Time CFO I may be as good as anyone to provide a definition of what a Virtual CFO is.

As I see it a Virtual CFO is a Part Time CFO who works for clients outside of their geographical territory and uses the following tools to communicate and execute:

1. Email
2. Telephone
3. Internet conference Room
4. A form of video or video conferencing

A virtual CFO is somewhat restricted as to the CFO Services they can perform. For example it would be difficult for a Virtual CFO to help a client develop a bank relationship or assist in assessing employee or inventory risk. However, a virtual CFO can improve cash flow, Do business and cash flow forecasting, establish key performance indicators and do product or service costing.

A Virtual CFO can perform most of the core CFO Services. The business owner needs to assess if their operation can opt for a virtual CFO versus and Hands on CFO. I think the bottom line is if the business owner needs to develop a banking relationship, needs risk assessments on employees, inventory and fixed assets that need to be physically seen, then a Virtual CFO is probably not for them.

Virtual CFO