WHY HIRE A SPLIT-TIME CFO?
BOOKKEEPER I ACCOUNTANT I CONTROLLER I CPA I CFO
Each of these people have different personalities, experiences and skill sets.
You may be disappointed if you expect any one person to do more than one of these jobs.
How Your Accounting / Finance Department Will Grow
Your company's complexity will grow as your
revenues grow through additional:
Products / Services
A good bookkeeper is usually content doing the repetitive daily tasks of running your business, like entering and paying bills and producing invoices. Many bookkeepers have grown up in the business and may not have formal accounting training or degrees. They do not really get debits and credits, and analysis frustrates them.
Accountants are usually distinguished from bookkeepers by their educational degrees. Debits and credits are their thing so they understand and can correctly execute double-entry accounting along with spotting and fixing incorrect postings. They can pull basic numbers together for simple analysis, but cash flow and financial analysis is still beyond their experience. Most small businesses do not have a true, degreed accountant.
Controllers supervise a company's accountants and bookkeepers and manage the movement of cash between multiple locations, accounts and entities. They typically run reports for historical analysis, but lack the strategic insights to help you improve the business. Most small businesses do not have nor need a controller.
CPAs are your tax experts. While they have financial expertise, their principal job is to reformat your year-end results into tax returns and provide tax advice. This job alone takes them out of circulation from January through September. Expecting your CPA to evaluate your monthly results and help you manage your on-going business, will leave you disappointed in them.
IN YOUR COMPANY
So if you really think about your company it may look something like this:
You and a bookkeeper run and manage it, so you don't have an accountant to ensure the accounting is correct or a controller to truly help you use the accounting to improve the business.
Your staff lacks the time and discipline to close each month and provide you with meaningful reports from which you could make decisions to improve your future.
After year-end you give the reports to your CPA to prepare your taxes, so results are uncertain until after the window to change them is long gone.
A SPLIT-TIME CFO
Fills the gaps in your financial expertise giving you solid accounting so you can use your numbers to improve your business.
Provides the discipline to close each month in a timely manner along with procedures to ensure the accounting is consistent.
Creates a budget against which you can measure your monthly progress and make improvements long before a CPA could provide feedback.