The PCR Blog

Helpful news, tips and business advice for small to medium business owners about how to maximise profit, minimise waste and grow and protect your business.

Optimising Your Cashflow with a Virtual CFO

Having money coming in and going out is one thing, but did you know that you can level up your investment opportunities, boost your budget and increase turnover by making sure your cashflow is structured to come when and where you want it? That’s where a CFO can help you.

But before we dive into cashflow strategies, you may be wondering, what is a CFO? A CFO is a Chief Financial Officer and is someone that is responsible for managing business finances and affairs. This could be one person or could be a manager running an entire accounts or finance department.

As you may have guessed, a virtual CFO is simply that; a chief financial officer you can connect with online. This is usually outsourced to a highly skilled accounting firm or business adviser as opposed to just a bookkeeper.

Outsourcing a virtual CFO is a cost-effective and efficient means of getting the accounting support you need for your small business without hiring a full-time person in the office.

So what specifically does a virtual CFO do? And why is this an important adviser to have for your business?

A good virtual CFO will be able to identify key trends in your business finances and help you identify potential issues before they get out of hand. In essence, they’re your financial guide. A virtual CFO service is slightly different to standard accounting as it incorporates more business advisory and consulting as opposed to general business tax or superannuation.

By outsourcing your CFO needs, you’ll get a better understanding of the key drivers in your business and, therefore, be able to build your business and wealth, protect your assets and enjoy your life.

This is done through:

A virtual CFO with the right skills can be extraordinarily powerful for a business looking to better manage costs, grow the business and understand their cashflow needs. However, it is crucial to only work with a CFO that demonstrates strong financial acumen as well as strategic and business insight, as there are a lot of legal, ethical and compliance aspects involved.

What exactly is cashflow analysis?

Cashflow analysis is the process of reviewing the cash position of a business. It isn’t simply looking at the bank balance today, but what caused the bank balance to be what it is. A cashflow analysis will allow you to understand the movements of cash in your business so you can better plan on what will happen with your cashflow now and going forward.

When we conduct a full cashflow analysis, we help you, as the business owner, to understand where your cash is in the business, what your cashflow requirements will be and how to optimise cashflow in a way that meets your goals. This can be an analysis of the business as a whole or it could look at one aspect of a business in more intricate detail.

A cashflow analysis can be performed on making a new investment or expansion of the business or completed on different business units so you can work out the profitability of that unit.

What are the things that we look at when completing a cashflow analysis?

  • Current bank balance
  • Current Assets (who is going to pay you in the short term)
  • Current Liabilities (who do you have to pay in the short term)
  • Loans and their repayments
  • Investments in Assets or the business
  • Current Profitability

By bringing these pieces together, we can make accurate predictions on your future needs and profitability. Essentially, the power of the cashflow analysis is that by changing variables, we can see what impact that has on the business.

If you are looking to get your business cashflow in order, a virtual CFO is the answer. Speak tour team today and find out how our virtual CFO services can get your business moving in the right direction. Call PCR Accounting & Advisory today on 03 9847 7516.


Owner of PCR Accounting & Advisory, Peter Marmara-Stewart is a top-tier accountant and financial advisor dedicated to helping clients reach their business goals and achieve financial freedom. Peter is highly regarded for his client-focused approach and entrepreneurial spirit, catering to a diverse range of professionals across a wide scope of industries all across the country. Peter’s expertise can help you plan effectively, set goals, maximise profits and protect your assets. Get in touch today on (03) 9847 7516.