CFO vs. Accountant: The Difference Explained
Having one resource that looks after compliance, financial accounting, taxation, strategy, reporting and planning, in all honesty, doesn’t usually work well. It’s rare you’ll find one person or resource that has the expertise and / or appetite to work across all the diverse activities that are required to have a high performing finance function.
There’s an increasing trend for finance professionals to specialise due to the broadening scope of skills required to meet the demands of modern businesses. It’s key to a business’ success to find the right match and mix of financial expertise. You might have great accounting staff already in place and be unsure what advantage adding an additional resource, a CFO, can bring to your business. Put simply, while good accounting staff will take care of keeping the lights on and ensuring things are compliant, a strong CFO will analyse , plan, strategise and provide sound advice to improve your decision making and help you grow.
CFO vs. Accountant:
Typically, an ACCOUNTANT takes care of the following tasks:
Compliance
Payroll
Reconciliations
Tax filings
Cash flow management
Basic reporting of P&L and balance sheet
A CFO spends their time doing the following:
Formulating business strategy
Financial modelling and planning
Reporting to investors on the financial health of a company
Deciding how to prioritise and invest a company’s money
Raising capital and negotiating with prospective investors
Supporting department heads, CEOs and boards make better rounded decisions
In Summary:
Accountants report on past and CFOs predict the future.
A good part-time CFO will not compete with your current accounting staff. They are additive, they work in a different realm, one focused on growth and performance . Controllers, and accountants are well-trained to keep you compliant and ensure the lights stay on and provide strong internal controls.
An outsourced CFOs’ value is their ability to extract and structure information from various sources and distill it into simple messages to aid decision making. They think big picture, they simplify the complex and develop strategies that drive a business forward.
Whether your business is just starting out or well established, having a CFO who knows your finances like the back of their hand will give you an edge. If you’re looking for help interpreting your numbers, understanding where your business is going, prioritising your spend, try a part-time CFO who can give you professional advice at a more cost-effective price than a full-time CFO.
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