Difference between a Bookkeeper and Fractional CFO
As a business owner, you know that keeping your finances in order is crucial for your success. But, with so many different financial roles out there, it can be hard to know who to turn to for help and which role does what. In this blog post, we're going to talk about the differences between a bookkeeper and a fractional CFO, and why having a fractional CFO on your team can be a game-changer for your business.
Bookkeeper
First, let's talk about bookkeepers. A bookkeeper is like the backbone of your financial team. They're responsible for keeping track of all your financial transactions and making sure that everything is recorded accurately. They handle tasks like creating financial statements and reconciling bank statements. Think of them as the ones who keep your financial house in order. As you can probably see, a bookkeeper is an absolute must for every business regardless of the stage (start up, growing, or mature) they’re in. Their focus is on the historical performance of your company so when you are reviewing the financial statements they prepared, it’s a snap shot of what has already happened. Typically bookkeepers do not need or have a degree in accounting/finance and need minimal experience. Most business owners while they can appreciate knowing how they performed, they want to know what the future of their business could look like which is when they turn to a Fractional CFO.
Fractional CFO
Let's talk about fractional CFOs! A fractional CFO, Chief Financial Officer, is like a financial coach for your business that works with you on a part-time basis without the cost of a full-time CFO. They're there to provide guidance and strategic planning to help you make the most of your finances. They are more forward-thinking and have a broader range of skills than a bookkeeper helping you with things like financial analysis, budgeting, and forecasting. They're there to help you make smart financial decisions and take your business to the next level. These are the kind of people who live and breathe numbers and have a knack for making sense of financial statements. Fractional CFOs typically have a background in accounting, finance, or business administration, and many have advanced degrees such as an MBA or CPA. Think of them as financial superheroes - they have the power to take a big-picture view of your company's finances and help you develop a long-term financial plan that aligns with your business goals. They know how to analyze financial data and can provide valuable insights and recommendations for improving your company's financial performance. Additionally, their knowledge goes beyond the numbers as they are usually well-versed in financial regulations and can also help you secure funding from investors or lenders by presenting your Company’s financials in a clear and compelling way which can increase your chances of getting the funding you need to grow your business.
Summary
Wrapping up, a bookkeeper and a fractional CFO are two different roles, but they both play an important part in keeping your finances in order. A bookkeeper is focused on past performance and is responsible for maintaining financial records, while a fractional CFO is focused on tomorrow and is responsible for providing financial guidance and strategic planning. Hiring a fractional CFO can be a game-changer for your business, they can provide you with valuable strategic financial guidance, help you stay compliant with financial regulations and laws, and help you secure funding.
At Jase Accounting Solutions, we provide both bookkeeping and CFO services allowing us to meet you where you are at and where you want to go in your business. Click below to begin working with our team.