You’ve reached a point with your business where your finances are growing more complex, or you no longer have time to give them adequate attention. You know you need an accountant, but if you’ve looked you realize that there are a lot of different accounting and finance titles out there. So what do they all do?
Chief Financial Officer (CFO). A CFO has an executive-level strategic role. They are generally responsible for financial planning, analysis, risk management and investor relations. CFOs shape the future of the organization. Consider hiring a CFO when you need assistance with:
- Significant growth or planning for expansion
- Financial strategy and planning
- Access to capital
- Capital allocation and cash flow
- Financial risk management
- Financial reporting and compliance
- Investor relations
- Restructuring or turnaround situations
- Financial leadership development
Controller. Like a CFO, a controller also has financial management responsibilities, but they focus more on accounting operations, compliance, and internal controls. Where the CFO is responsible for charting the future, the Controller is responsible for reporting the past. A controller may be best suited to assist with:
- Increasing business size and complexity
- Financial reporting and compliance
- Internal controls and risk management
- Budgeting and financial planning
- Cash flow and liquidity management
- Staff management and development
- System implementation and integration
Accountant. Accountants focus on financial recording, reporting and analysis and sometimes taxation. Accountants typically perform many of the same tasks as controllers, albeit with less financial management responsibility and complexity. Accountants typically require a degree in accounting or a related field, and may hold professional certifications like Certified Public Accountant (CPA). Consider an accountant for assistance with:
- General accounting tasks
- Financial reporting
- Reconciliations and analysis
- Budgeting and forecasting
- Controls and compliance
- Financial systems and software
Bookkeeper. Bookkeepers are responsible for accurate data entry, maintaining financial records, and reconciling accounts. Bookkeepers may or may not have a degree or advanced certifications. They are responsible for the day-to-day aspects of accounting. Consider a bookkeeper when you are struggling with:
- Increasing transaction volume
- Time constraints
- Organization and accuracy
- Basic financial reporting
- Bank reconciliation
- Accounts payable and receivable
- Compliance and record keeping
If you’re still not sure what type of accountant you need, it’s likely that you need a combination of roles. However, you may not need them full time. This is where fractional professionals can provide cost-effective solutions. A fractional professional is a long-term or project-based, part-time member of your team. Engaging a fractional professional allows you to leverage the skills and experience of these professionals without the long-term commitment and expenses associated with full-time employment.
