Mastercard Describes a Virtual Finance Chief for Small Businesses

Mastercard has described a "virtual CFO," a digital stand-in for a company's finance chief, built with small and medium-sized businesses in mind. The idea is simple: give smaller companies access to the kind of money guidance that usually comes from a senior finance executive. The full article was not available, so most of the specifics are still unknown.

What it is

A CFO, or chief financial officer, is the person who oversees a company's money. That includes planning, spending, cash flow and big financial decisions. A virtual CFO is a digital version of that role. Based on the material available, it is meant to fill the gap for businesses that cannot afford a full-time CFO.

Who it affects

The target is small and medium-sized businesses. Many of them rely on an owner, a bookkeeper or an outside accountant to handle finance questions. A tool like this could, in theory, lower the cost of getting finance advice. That is the main reason it is worth watching.

What is not known yet

Several basic questions are open. The material does not say:

• What features the virtual CFO includes
• How much it costs, or whether it is free
• When it launches, or where it will be available
• How it handles a business's financial data

What to do

Business owners can wait for Mastercard to publish more detail. Before relying on any tool like this, check what it actually offers and what it charges. It is also wise to ask how it uses your data and whether it replaces or only supports human advice.