The Chamber of Commerce reports that approximately 65-70% of small businesses in the U.S. fail within 10 years of commencing operations. More than 50% do not survive past five years. Each year, roughly 20% of new small businesses close. What are some major contributors to these statistics?
While overall economic conditions, competitiveness, and other factors play important roles, mismanagement of finances is consistently recognized as a leading cause of small business failure.
While it takes a symphony of 100s of of factors to get a business up and running and keep it lucrative, it only takes one harmful ingredient (poor financial management) to lose its magic and fail.
These studies indicate that entrepreneurs need to do some things differently, and the US is quick to adapt. Small businesses and start-ups are adapting to business models that acclimate virtual CFO firms to better their chances of success. The virtual CFO market is experiencing rapid expansion, with recent estimates indicating a global growth rate of approximately 9.6% CAGR through 2032. Cloud tech and remote work culture have now opened up opportunities for small businesses to take advantage of Virtual CFO services. This trend is poised to transform the business finance landscape in the years to come.
If these stats make you want to consider hiring a Virtual CFO, here’s our guide to get the maximum bang for your buck.
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Virtual CFO Services for Small Businesses: What can a virtual CFO do for your firm?
Let’s assume you have your proof of concept in place, it has been tested, and your business has developed traction, resulting in steady revenue growth. You intend to raise funding after identifying promising growth in your niche. Where does a Virtual CFO fit into this plan? Better still, how could it make any difference?
Ø A full-time CFO in the U.S. typically commands $200,000–$400,000 annually. Whereas a virtual CFO charges between $3,000 and $10,000 per month. Making this a cost-effective solution that puts you at the advantage of strategic financial planning, real-time reporting, cash flow & risk management, investor & lender readiness, and, more importantly, keeping your firm ready to scale!
Ø The price range improves accessibility to SMBs, Small & Medium-Sized Businesses. Thus, enabling you to gain the benefits of an in-house financial advisor without having to bear the cost.
Hire a virtual CFO when your business starts generating revenue and you need help with financial strategy, budgeting, fundraising, or scaling. They’re especially valuable during rapid growth, tax season, or investor negotiations.
Now that we understand the need for a virtual CFO in the small business landscape, let’s look at the services a virtual CFO provides.
This article outlines the set of tasks your virtual CFO can perform, the objectives of each task, and a realistic timeline for completion.
What services can a Virtual CFO offer for Small Businesses? – 2025
The services offered by a virtual CFO in 2025 are
1. Financial Planning & Strategy
2. Cash Flow Forecasting & Management
3. Budgeting & Cost Control
4. KPI Monitoring & Performance Reporting
5. Financial Modeling & Scenario Analysis
6. Bookkeeping Oversight & Financial Statement Review
7. Profitability Analysis
8. Tax Planning & Compliance Advisory
9. Debt Management & Financing Support
10. Investor & Stakeholder Reporting
11. Internal Controls & Risk Management
12. System & Process Automation Advisory
13. M&A and Exit Strategy Support
14. Payroll Oversight & Employee Compensation Planning
15. Strategic Vendor & Expense Negotiation
Let’s put this in a pragmatic perspective and understand how you could use an actionable plan with a timeline to achieve financial compliance.
Here’s a Virtual CFO Compliance & Task Calendar crafted for Small Businesses -2025
The compliance and tasks are distributed into Short-Term & Long-Term plans
Monthly Tasks: The monthly tasks focus on repetitive yet essential tasks that help flag deviations from business goals. A monthly dashboard that visualizes how the business performed indicates some pointers towards improvements, and effectively adopting incremental enhancements could make a difference in the big picture.
| Monthly Tasks | ||
| Due Date | Task | Description |
| 1st–5th | Bank & Credit Card Reconciliations | Ensure that all transactions match their corresponding statements and detect and address any fraud or errors. |
| 5th–10th | Cash Flow Forecast Update | Review cash inflows/outflows, adjust projections as needed, and flag any shortages. |
| 10th–15th | Review Financial Statements | Analyse P&L, balance sheet, and cash flow; spot trends and anomalies. |
| 10th–20th | Accounts Receivable & Payable Review | Follow up on overdue invoices; manage vendor payments strategically. |
| 15th–20th | KPI & Budget Tracking | Compare actual results to the budget and refine targets and strategy accordingly. |
| 20th–25th | Payroll Review Oversight | Verify accuracy, deductions, and tax filings (with payroll provider). |
| End of Month | Management Report Delivery | Send a summarized financial report that includes key insights and actionable recommendations. |
Quarterly Tasks: Quarterly tasks incorporate taxation, debt financing, and inventory analysis, further refining operations to align with business goals.
| Quarterly Tasks | ||
| Quarter End | Task | Description |
| Q1–Q4 End | Quarterly Financial Review & Strategy Session | Meet to review financial health, trends, and realign goals. |
| Q1–Q4 End | Estimated Tax Payments (IRS Form 1040-ES) | Ensure federal tax estimates are paid on time (if applicable). |
| Q1–Q4 End | Sales Tax Filing (if applicable) | File state and local sales tax returns and remit payment. |
| Q1–Q4 End | Payroll Tax Returns (Form 941) | Confirm filing of quarterly payroll tax returns (if managing payroll). |
| Q1–Q4 End | Adjust Budget & Forecasts | Refine budget and forecasts based on actual results and business shifts. |
| Q1–Q4 End | Debt & Loan Review | Reassess loan repayment schedules, interest expense, and refinancing options. |
| Q1–Q4 End | Inventory/COGS Analysis (if applicable) | Audit inventory and analyze trends in the cost of goods sold. |
Annual Tasks: The annual task compliance ensures you meet tax deadlines while taking advantage of relevant deductions and deferred liabilities. It provides an overview of the annual financial performance and ensures the business is audit-ready. Reviewing the yearly performance helps check the effectiveness of monthly & quarterly financial decisions and provides a workable blueprint for creating an actionable budget for the following year.
| Annual Tasks | ||
| Timeframe | Task | Description |
| January | Prepare for Year-End Tax Filings | Coordinate with CPA to prepare for income tax return (Form 1120/1065). |
| January | File 1099s & W-2s | Ensure vendors and employees receive IRS-required year-end forms. Deadline: Jan 31. |
| February–March | Support Annual Tax Filing | Provide financial statements, schedules, and documentation to the CPA. |
| Q1 (Jan–Mar) | Annual Financial Strategy Session | Deep-dive planning session for growth, funding, or exit goals. |
| Q1 (Jan–Mar) | Business Insurance & Compliance Check | Review insurance, licensing, and legal compliance. |
| Year-End | Financial Statement Cleanup & Year-End Closing | Close books, adjust entries, and prepare clean year-end reports. |
| Year-End | Audit Prep (if applicable) | Organize financial records and ensure audit-readiness (for funded businesses). |
| As Needed | Budget Creation for the New Year | Develop a comprehensive annual budget based on established goals and forecasts. |
What is the objective of the Virtual CFO Compliance & Task Calendar?
Having a deeper comprehension of each task and its objective provides insight to tweak and rework the above schedule to align it best with your specific needs.
For instance, if you have a proficient tax planner on your team, you could ask your virtual CFO to focus more on financial decisions and less on tax deadlines and keeping the books audit-ready.
OR
If you have robust software and an outsourced accounting team keeping your statements up to date & accurate, you could ask your CFO to focus less on reconciliation and more on financial strategy.
Here’s a comprehensive list of the tasks and the objective of each task (in a non-alphabetical order), which you could use as a glossary.
Objective for Virtual CFO Services for Small Businesses
Credit Card and Bank Reconciliations: Ensures your books match actual cash and credit balances—critical for accuracy and fraud prevention.
Cash Flow Forecast Update: Anticipates cash shortages or surpluses so you can plan payments, investments, or financing needs.
Review Financial Statements: Tracks business performance, highlights risks, and ensures your financials are healthy and credible.
Accounts Receivable & Payable Review: Keeps your collections tight and vendor relationships strong—improves cash flow and reputation.
KPI & Budget Tracking: Measures your progress toward financial goals; enables data-driven decisions.
Payroll Review Oversight: Ensures employee payments are accurate and legally compliant; avoids penalties and staff issues.
Management Report Delivery: Provides you with a clear, actionable summary of your business’s financial status and next steps.
Quarterly Financial Review & Strategy Session: Aligns your goals with financial performance; makes room for pivots and growth planning.
Estimated Tax Payments (Form 1040-ES): Avoids IRS underpayment penalties and spreads tax liability throughout the year.
Sales Tax Filing: Complies with state/local tax laws; prevents audits, penalties, and interest.
Payroll Tax Returns – Form 941: Required by the IRS to report payroll taxes; ensures timely and accurate tax filing.
Adjust Budget & Forecasts: Keeps your financial plan realistic as business conditions evolve.
Debt & Loan Review: Manages interest expense, evaluates refinancing, and ensures your capital structure is healthy.
Inventory/COGS Analysis: Helps control inventory costs, detect shrinkage, and optimize margins.
Prepare for Year-End Tax Filings: Ensures tax returns are accurate, complete, and ready to file with your CPA.
File Form 1099s & W-2s: Required by the IRS; ensures compliance in paying contractors and employees.
Support Annual Tax Filing: Streamlines the tax filing process, ensures deductions are maximized, and reduces errors.
Annual Financial Strategy Session: Provides big-picture guidance on revenue goals, expense planning, and future investments.
Business Insurance & Compliance Check: Protects your business legally and financially; prevents lapses in licenses or policies.
Financial Statement Cleanup & Year-End Closing: Closes books cleanly for the year; vital for tax filing, audits, and investor readiness.
Audit Prep: Ensures your books are accurate, organized, and defensible—critical for funding or compliance.
Budget Creation for the New Year: Provides a financial plan for revenue, expenses, and cash, setting the direction for the year.
Conclusion
Businesses are adapting to new strategies, such as hiring virtual CFO services, to ensure sustained business success. Reading about how a virtual CFO could make a difference to a small business gives you a grasp of how to customize the services offered by a virtual CFO to suit your needs best. Profitjets is a preferred virtual CFO. We have a bench of certified and experienced experts available to assist you. We assign a dedicated virtual CFO to your firm at a fraction of what a full-time CFO would charge.
We also provide outsourced accounting and bookkeeping services. We are your one-stop solution for all accounting, bookkeeping, CFO, and tax needs. Contact us today to take advantage of a great deal.
FAQs about Virtual CFO Services for Small Businesses
1. What is a virtual CFO?
A virtual CFO is a remote financial expert who provides CFO-level guidance and services to businesses without being a full-time employee. Virtual CFOs help small businesses make informed financial decisions, optimize cash flow, and ensure compliance.
2. What is the role of a virtual CFO?
The role of a virtual CFO includes strategic financial planning, forecasting, budgeting, cash flow management, risk mitigation, investor reporting, and ensuring regulatory compliance. Essentially, they act as your company’s financial mentor, guiding your business toward profitability and growth.
3. What does a virtual CFO do for a small business?
A virtual CFO helps small businesses manage complex financial responsibilities such as preparing budgets, analyzing KPIs, overseeing accounting operations, handling tax strategy, and offering insights that drive better business decisions. They work as an on-demand strategic partner.
4. What is the difference between a CFO and a virtual CFO?
A traditional CFO is a full-time executive working on-site, typically for large enterprises. A virtual CFO, on the other hand, offers the same financial expertise remotely and on a part-time basis. The virtual CFO model is more flexible and cost-effective, making virtual CFO services ideal for startups and small businesses.
5. How much does an outsourced virtual CFO cost?
As of 2025, an outsourced virtual CFO in the U.S. typically costs between $1,500 and $7,500 per month, depending on the complexity of the business, the scope of services, and the frequency of engagement. Some charge a flat monthly fee, while others use hourly or tiered packages.
6. How does a virtual CFO compare to a fractional CFO?
A virtual CFO works remotely and usually supports multiple clients, often using cloud-based tools. A fractional CFO may work on-site or remotely and divides their time between a few businesses. Both offer part-time CFO services, but “Virtual CFO” emphasizes remote delivery, while “Fractional CFO” focuses on time allocation.
7. Is hiring a virtual CFO worth it for a small business in 2025?
Yes. Hiring a virtual CFO in 2025 is a smart move for small businesses that need strategic financial direction without incurring the high costs of a full-time CFO. They bring financial clarity, reduce tax exposure, and help you scale with confidence.
8. What services should I expect from a virtual CFO in 2025?
In 2025, top virtual CFO services include:
– Financial reporting & KPIs
– Cash flow management
– Budgeting & forecasting
– Tax strategy & compliance
– Investor & board reporting
– Automation advisory
– Strategic planning and growth support
9. How is a virtual CFO different from an accountant or bookkeeper?
Accountants and bookkeepers record financial transactions and ensure tax compliance. A virtual CFO interprets those numbers, sets financial goals, optimizes cash flow, and provides strategic insight to grow your business. They operate at a leadership level.
10. Do I need a virtual CFO if I use QuickBooks or Xero?
Yes. Software like QuickBooks or Xero automates data entry and reporting, but they don’t offer guidance or strategic analysis. A virtual CFO uses that data to build financial models, analyze risks, and help you make smarter decisions.
11. How do I track whether my virtual CFO is delivering results?
Use a deliverables and compliance calendar to monitor tasks—set KPIs for cash flow, profit margins, and budgeting accuracy. Schedule regular financial reviews and ensure you receive actionable reports and insights.
12. Can virtual CFOs help with funding or investor reporting?
Absolutely. Virtual CFOs prepare financial projections, investor reports, pitch decks, and due diligence materials for clients. They play an essential role in helping small businesses secure funding, manage investor expectations, and prepare for an exit.
13. When should a startup or small business hire a virtual CFO?
Hire a virtual CFO when your business starts generating revenue and you need help with financial strategy, budgeting, fundraising, or scaling. They’re especially valuable during rapid growth, tax season, or investor negotiations.
