- Owners ask the same seven questions: profit, why profit moved, cash, who owes us, money stuck, can we pay, what to do.
- Each has a clear source in the trial balance: P&L, margin, cash against fixed costs, debtor days, stock, current ratio.
- Answer in one plain sentence with a number, then turn the biggest issues into actions.
- The skill isn't new knowledge; it's checking the right things every month and saying it simply.
In this guide · 9 sections
The most common reason CAs give for not offering virtual CFO services is this: "I have never been a CFO."
Here is the good news. The owner of a Rs 5 crore business does not want a corporate CFO. They do not want treasury policy, investor decks or IFRS. They want someone they trust to answer the same few questions every month, in plain words, and to tell them what to do about it.
If you can answer these seven questions, you can be their CFO.
1. "Did we make money last month?"
Not sales. Profit. Most owners know their sales figure by heart and have no idea of their monthly profit until the year ends.
Where the answer is: the monthly P&L from the trial balance, compared with the previous month and the same month last year. Show sales, gross profit, the main costs and profit before tax. Five lines are enough for the owner.
What to say: "You made Rs 4.2 lakh in October, against Rs 6.1 lakh in September. Sales were similar; the difference is gross margin."
2. "Why is profit different from what I expected?"
This is where you earn your fee. The owner feels busy and assumes profit is up. Your job is to explain the gap.
Where the answer is: gross margin percentage month on month, and the big expense heads (salaries, other expenses, finance cost) against last month. Anything that moved more than 15% deserves a sentence.
What to say: "Your margin fell from 31% to 28%. Raw material rates went up and your selling prices didn't."
3. "Will we have enough cash?"
Cash keeps owners awake, not profit. A profitable business can still miss salaries.
Where the answer is: cash and bank balance, against monthly fixed costs (salaries, rent, overheads, interest). If cash covers less than two months of fixed costs, that is a warning.
What to say: "You have about six weeks of fixed costs in the bank. Collections from the top three customers decide whether December is comfortable."
4. "Who owes us money, and how old is it?"
Where the answer is: receivables as days of sales (debtor days), and how much is older than 90 days. One rising month is noise; three rising months is a trend.
What to say: "Customers are now taking 74 days to pay, up from 61. Rs 22 lakh is older than 90 days. Let's agree a follow-up list for this week."
5. "Where else is our money stuck?"
Where the answer is: stock, advances to suppliers, loans and advances to related parties. Compare with last month. Stock rising faster than sales is money sitting on the shelf.
What to say: "Stock is up Rs 15 lakh while sales are flat. Which items are not moving?"
6. "Can we pay what we owe?"
Where the answer is: the current ratio (current assets against current liabilities), borrowings this month against last month, and creditor days. A current ratio below 1 means short-term dues exceed what you can quickly turn into cash.
What to say: "Borrowings went up 20% this month. What was the extra money used for?" That single question often uncovers a problem the owner hadn't told anyone about.
7. "What should I do now?"
The question behind all the others. A report full of numbers with no actions is a report the owner stops reading.
Where the answer is: your judgement. Take the two or three biggest issues and turn each into an action with an owner and a date: "Call these five customers — accountant — by the 20th." Next month, start with the status of last month's actions.
Notice what's missing
There is nothing here a practising CA can't do. No forecasting models, no valuation, no fundraising. The skill is not knowledge; it is checking the right things every month, and saying it simply.
That is also why the work can be shared with your team. A junior can prepare the P&L, the ratios and the comparisons. A senior can spot what moved and draft the explanation. You add the judgement and run the meeting.
Make it a checklist
Write these seven questions on one page. Every month, for every CFO client, make sure the report answers each one. If a question can't be answered because the books aren't ready, say so; that is an answer too.
In CFOPartner these questions are built into the monthly report: profit and loss against last month and last year, cash and working capital, key ratios, the points that need the owner's attention, and actions for next month. Your team fills in the books; the software lays out the answers; you add the judgement.
Next: what that monthly report should look like, page by page.
Free guideMonthly CFO report outline: 11 sectionsThe structure of a monthly CFO pack that a business owner can read in ten minutes. This is the outline CFOPartner's report follows, with a cover and a contents page.Open the guide →