What Is a Virtual Finance Function for SMEs and Startups?

What Is a Virtual Finance Function (VFF)?

A Virtual Finance Function replicates the core functions of an in-house finance department — but is delivered remotely by an outsourced team of professionals.

This includes:

• Bookkeeping & transaction processing

• Management accounts and cash flow forecasting

• Payroll and VAT returns

• Budgeting and financial modelling

• Credit control and payment runs

• Strategic financial advice from experienced accountants

Instead of hiring multiple employees and managing various software platforms internally, a VFF acts as your plug-in finance department, tailored to your business size and growth stage.

Who Benefits from the Virtual Finance Function?

• Startups and scale-ups that are growing rapidly but don’t yet need (or can’t yet afford) a full internal finance team

• SMEs with complex transactions but limited in-house expertise

• Established businesses looking to cut costs, increase efficiency or modernise their operations, whilst requiring support from a interim FD/CFO to assist with business growth planning or other complex transactions/events

• Entrepreneurs running various businesses and needing a centralised finance function

The model is flexible — whether you need basic bookkeeping or CFO-level guidance, a VFF adapts to your business without the overheads of permanent staff! It also often brings the expertise of highly trained practice accountants who have gained an insight into various different industries at the highest level!

The Cost Comparison: Virtual vs. In-House Finance Teams

Let’s break down the typical cost of building a basic in-house finance function:

Role Average Annual Cost (UK)

• Bookkeeper: £28,000 – £35,000

• Financial Accountant: £45,000 – £60,000

• Finance Manager / Controller: £60,000 – £80,000

Total (basic team): £73,000 – £133,000+

And that doesn’t include:

• Recruitment costs

• Software and systems

• Training and development

• Employer’s National Insurance and pensions

• Annual leave, sick pay, and management time

A Virtual Finance Function, in contrast, gives you access to a full team of experts — typically at a fraction of the cost. Packages can start from as little as £1,500 per month, scaling up depending on your size, needs, and transaction volume.

That’s a starting point of £18,000 annually, covering bookkeeping, accounting, reporting, and access to financial leadership — often at less than the cost of a single employee.

The Real Benefits Go Beyond Cost

Yes, the cost savings are compelling — but there’s more:

• Expertise on tap: Access to qualified accountants, finance managers and tax experts without the overheads. (of course more complex projects outside of normal annual compliance may be priced in addition, however the benefit of having an 'All-In-One' partner still exists!)

• Scalability: As you grow, your VFF grows with you — no need for expensive hiring rounds.

• Efficiency & automation: VFFs typically use best-in-class technology and systems to streamline your processes.

• Better decisions, faster: Regular reports, cash flow forecasts, and strategic insight give you control and confidence.

Is a Virtual Finance Function Right for You?

If you're:

• Spending too much time on finances and not enough on growth

• Unclear about your cash position or profitability

• Struggling to recruit or retain finance staff

• Looking to scale sustainably without unnecessary overheads

…then a Virtual Finance Function could be the smarter, more modern solution!

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