Bookkeeper vs Accountant vs Controller vs CFO

There is no one-size-fits-all solution when it comes to building a successful business. Some companies have grown to a position where a CFO is necessary to solidify long-term strategies. Smaller companies that are just starting out may do well with simple bookkeeping services.

Here are definitions of financial management roles that can help you run your small business:

• Bookkeepers are responsible for entering data into the books and keeping the records up to date. They track all income and expenses, pay bills, produce invoices, record payroll, etc.  Bookkeeping is transactional. The core of bookkeeping is data entry and coding, ensuring that the accounting system, spreadsheets, and databases are contain with the accurate data, coded to the right accounts so that bills can be paid and reports can be pulled.  Because bookkeepers are the source of the original data entry, they must understand how to code each transaction.
• Accountants, often performing bookkeeper tasks as well, ensure proper reconciliation and may perform billing, make general ledger entries, review accounts payable activity and reconcile payroll.
• Controllers manage the accounting function, including ensuring month-end close processes and financial reporting functions are performed accurately and timely budget creation. They oversee the accountants and bookkeepers and control the company’s cash flow – keeping tabs on how the money comes in and where it is going. They can guide the business owner in financial organization, analysis, and planning.
• The CFO role in small business typically focuses on strategic advice and helping the business scale. The CFO’s primary responsibility is to project the long-term financial picture of the company and help it thrive based on their analyses. While mostly forward looking, the CFO oversees, or if need be, performs the Controllership duties – ensuring accurate and timely reporting is available to business key stakeholders.

Where are you in your business life cycle? What financial management services will work best for you? We can customize financial management solutions to match your business owner need. Give us a call to learn more.