Insights
Why More Mid-Sized Subsidiaries in Germany Are Choosing Virtual CFOs
Running a German subsidiary can be a balancing act. On one hand, parent companies expect transparency, compliance, and strategic reporting.
On the other hand, the subsidiary may not be large enough to justify hiring a full-time CFO. The result is often a financial leadership gap, where critical decisions fall to overstretched managers or external accountants.
This is where the Virtual CFO model comes in. A Virtual CFO provides access to senior financial expertise without the overhead of a permanent executive. For mid-sized subsidiaries, this hybrid approach offers the best of both worlds: cost efficiency and professional control.
What does a Virtual CFO actually do?
🔹 Ensures compliance with German GAAP (HGB) and local tax obligations
🔹 Oversees budgeting, forecasting, and liquidity planning
🔹 Manages audits and supports group consolidation
🔹 Acts as a bridge between local teams and HQ abroad
🔹 Provides strategic advice on financing, risk, and strategic growth
💡 Why it matters?
The benefits go far beyond cost savings. A Virtual CFO provides structure, builds trust with auditors and regulators, and ensures that the German entity is fully aligned with group expectations. For parent companies, this means greater visibility and fewer compliance risks.
At Greenfields, we support subsidiaries with Virtual CFO services tailored to their needs. Whether your German operation is in its early growth phase or scaling rapidly, the model ensures that your financial governance keeps pace. It is about building a strong financial foundation without overextending resources.