If you aren’t sure what the difference is between a bookkeeper or accountant and a CFO/Controller, it’s ok, you aren’t alone. I frequently get asked if I provide bookkeeping services (I do not) but not everyone understands why. I wanted to use this month’s post to explain what the differences are between the roles.
Bookkeeper – records transactions for a business, allocating them to the appropriate categories. This role is typically responsible for reconciling accounts and preparing reports.
Accountant – while there are various types of an accountant, typically small businesses interface with financial and tax accountants. These individuals usually hold a CPA designation and are responsible for preparing your tax returns in accordance with local and Federal tax laws.
CFO or Controller – has a much more strategic role in a business. This role is filled by an individual that understands how financial reports are driven by the operations and output of a business. CFO/Controllers can analyze available information to determine the impact of activities on the financial health of the organization and can strategize ways to identify efficiencies and improve profitability.
As you can see, the bookkeeper and accountant roles are very different from activity-based cost and operations analysis conducted by the CFO or Controller. Experience in one does not translate into capabilities in the other. You wouldn’t hire a handyman to build a high-rise; you shouldn’t be hiring a bookkeeper or accountant to do the work of a CFO/Controller.
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