Why more SMEs are turning to virtual CFOs
For small and medium-sized enterprises (SMEs), managing growth while maintaining financial discipline can be a high-wire act—particularly in today’s volatile business landscape.
Increasingly, businesses are turning to virtual CFOs to strike that balance, finding that financial expertise doesn’t always need to sit in-house to deliver value.
Matthew Illman, partner at advisory firm William Buck, says the shift towards virtual CFO services is being driven by demand for more sophisticated financial insight, especially where in-house capacity is limited.
“Employing a virtual CFO enables the bookkeeping function to be linked with reporting, to better forecast cashflow, manage performance and profitability, and dig into the analysis with a greater level of expertise,” Illman explained.
Unlike traditional CFOs, virtual CFOs are often engaged on a flexible basis—meeting with clients monthly to review financial performance, while scaling involvement around key milestones such as year-end planning or funding rounds.
This adaptable approach allows SMEs to benefit from CFO-level insights without the cost or commitment of a full-time hire.
Clients working with William Buck’s virtual CFO team also benefit from longstanding relationships, with Illman noting, “Most of the businesses I’ve worked with in this space, I’ve worked with for many years. That obviously creates a good level of synergy, understanding and connection with the business.”
Technology has further accelerated the trend. Cloud-based accounting systems have made remote collaboration seamless, while AI-powered analytics tools have enabled faster, deeper insight into business performance.
“This has made the service a lot easier and more efficient for both parties to work on the business together,” said Illman.
Triggers for engaging a virtual CFO vary, but Illman points to a common thread: financial visibility. Many SMEs realise they lack clear insight into cashflow or performance metrics, despite having accounting software in place.
A virtual CFO can bridge the gap between raw data and actionable insight—building forecasts, setting KPIs, and identifying early warning signs.
“There can be a number of moving parts linking cashflow and general business performance,” Illman said. “We often see businesses who need that extra help in interpreting the financial data they have.”
That help increasingly includes areas such as ESG reporting, especially for companies supplying to larger businesses with ESG obligations, or those seeking finance and needing to demonstrate sustainability credentials.
As business models evolve, the role of a CFO—virtual or otherwise—is no longer limited to compliance and financial hygiene. It’s about steering strategy, building internal capability, and positioning the company for resilience.
“We can look at a business from the aspect of the virtual CFO,” Illman said, “and also take into consideration everything else the business owners have going on, and use our breadth of service to optimise every aspect of their financial situation.”