A chief financial officer answers questions that a tax return and a bank statement cannot: Can we afford to hire? Which jobs actually make money? How much cash will we have in ten weeks? What will the lender want to see? A full-time CFO is out of reach for most small and mid-sized companies. A virtual CFO service gives owners that kind of senior financial thinking on a part-time, remote basis, built on real numbers from the books we help maintain. It is for owners in Naperville, Aurora and Chicagoland, and for businesses anywhere that want a finance partner who also understands the tax side.
What the service includes
- Budget and forecast. A budget by month, built from last year and the changes you plan, and a rolling forecast that is updated as the year moves.
- KPIs. A short list of measures that fit your business, reviewed monthly rather than buried in a long report.
- Monthly management report. Profit and loss against budget, balance sheet, cash position and a written explanation of what moved and why.
- Cash-flow planning. A forward view of cash, so shortfalls show up weeks ahead. The mechanics are explained on our working capital page.
- Pricing and profitability analysis. Margins by product, service, customer or job, after the real cost of labor and overhead.
- Tax-aware decisions. How a purchase, hire, owner payment or entity change affects both cash and taxes.
- Lender and investor reporting. Packages that show performance, covenants and projections in the form the recipient expects.
- Scenario planning. What happens to profit and cash if sales fall 10%, a large customer leaves or you open a second location.
Measures we commonly track
| Measure | What it tells you | A question it answers |
|---|---|---|
| Gross margin | What is left after direct costs | Are our prices keeping up with our costs? |
| Operating margin | Profit from operations as a share of sales | Is growth adding profit or only revenue? |
| Days sales outstanding | How long customers take to pay | Why is cash tight if sales are up? |
| Months of cash | Cash divided by monthly spending | How long can we operate if sales slow? |
| Revenue per employee | Output per person | Do we need to hire, or to schedule better? |
| Customer concentration | Share of sales from the largest customers | What happens if one account leaves? |
An example
Example, with simple numbers. A mechanical contractor reports $2,000,000 in annual sales and a 35% gross margin, and the owner is pleased. Job-level reporting shows installation work earning a 45% margin, while small repair calls earn 20% once truck time and call-backs are counted. Dropping the lowest-margin calls from the schedule, or pricing them with a minimum charge, changes the picture before a single new customer is added. A tax return would never have shown that split.
Tax-aware decisions
Advice that ignores tax can cost money, and advice that ignores cash can cost the business. A few examples of what we model together:
- Equipment. For qualified property acquired after January 19, 2025, 100% first-year depreciation is available under current law. That helps taxes but spends cash now, so we compare buying, financing and leasing.
- Owner pay. For an S corporation, the split between salary and distributions affects payroll tax, the qualified business income deduction and what lenders see.
- Entity and structure. When growth, a new partner or a new state changes the right answer. See business formation.
- Timing. Whether to invoice, hire, buy or pay a bonus before year-end.
The qualified business income deduction continues for tax years beginning after 2025, with a minimum deduction for certain active businesses, so it should be part of any compensation analysis. See tax planning.
How an engagement works
- Consultation. We talk through the business, the owner's goals, the decisions on the horizon and how you use numbers today.
- Written engagement agreement. It sets the scope, the monthly or quarterly cadence, deliverables, what we need from you and how fees are determined. We start after you sign it.
- Document collection and baseline. Access to the books, prior financial statements and tax returns, loan agreements, budgets, contracts and a list of the decisions you face.
- Setup. We confirm the books are reliable (see bookkeeping and accounting and financial statements), agree on the KPIs, and build the first budget.
- Regular reporting and meetings. After each month's close, you receive the report and we meet to discuss it.
- Follow-up. Quarterly, we revisit the forecast and update the plan. Each fall, we start the next year's budget.
If you want a 2027 budget in place by January, October and November are the right months to begin.
Common problems we fix
- Reports that arrive six weeks after the month ends, too late to act on.
- A profitable business that is always short of cash because of receivables, inventory or loan payments.
- Prices set years ago and never revisited.
- No budget, so there is nothing to compare actual results against.
- Surprises in lender or investor meetings.
- Owner pay and distributions decided in December instead of planned in advance.
The SBA's guidance for established businesses and for loan applicants emphasizes projections, balance sheets and cash flow statements; this service puts those documents to work every month.
How we can help
You get a finance partner who sees the books, the tax return and the plan together. We meet in person with clients in Naperville and Aurora, and by video with clients in other states. We do not provide legal or investment advice, and we cannot guarantee results; we make the numbers visible so you can decide with confidence. Contact us to discuss the scope that fits.
Frequently asked questions
How is a virtual CFO different from my bookkeeper or accountant?
A bookkeeper records transactions and an accountant prepares statements and returns. A virtual CFO uses that information to plan, budget and advise on decisions. Often one firm does all three, which keeps the numbers consistent.
Do I need a virtual CFO if I am small?
Not necessarily. If the owner knows the numbers and decisions are simple, good bookkeeping and an annual tax plan may be enough. It becomes valuable when decisions are bigger, cash is tight or a lender, investor or partner is involved.
Can you prepare reports for my bank or investors?
Yes. We prepare management reports and lender packages using your books. If a lender requires reviewed or audited statements, that is a different engagement, and we will tell you whether we can provide it.
What do you need from me each month?
Timely access to bank and card activity, answers to questions about unusual items, and a conversation about what changed in the business.
Official sources
- SBA: Manage your finances
- SBA: Write your business plan
- IRS: Publication 946, How to Depreciate Property
- IRS: Qualified business income deduction
This page is a plain-language summary. The official source controls if there is any difference.
General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.