Your business is growing fast and you know you NEED a numbers person on your team asap – there’s just one problem, do you hire a CPA or CFO?
If you’re not sure what the difference is between a CPA and CFO (or even what these two roles do), you’re in the right place. Let me break it down:
CPAs are experts in tax strategy. While the role may vary from company to company, a CPA’s bread and butter lies with ensuring that your finances are accurate and compliant with tax law. They will also keep an audit, inspect financial records and prepare tax reports.
On the other hand, CFOs are mostly in charge of directing and implementing financial strategy that focuses on long term implications for your business.
Yes, it’s true, CPAs are financial experts but it’s not typical that their role will include full financial strategy. They’ll give you financial advice and help you with bookkeeping so everything remains clear and accurate, but they aren’t required to be a part of your long term business and financial goals.
Think of it this way: CPAs help you record and file your financial data after the fact while CFOs are focused more on your future cash flow. CPAs play on defense; CFOs play offense. They both make sure your business is working at optimal levels.
You should look into hiring a CFO if you need the following:
- Financial strategy and growth
- Efficiency, scalability and improving profitability
- Optimizing margins
- Financial Forecasting
- Expense control/Cash flow
- Financial risk assessment(s)
- Establishing systems, policies, and procedures
- Financial project management
- Shareholder relationships
Your business does not need to be a multi-million dollar publicly traded conglomerate to need a CFO. In fact, you can be the sole employee of your 6 figure S-Corporation and be the perfect candidate for hiring a CFO to be the financial hero of your business. Right now, you might be telling yourself that you don’t have the money or even enough financial projects to hire a CFO at the moment. Well, that’s the beauty in outsourcing for a part-time virtual CFOs.
Today’s business climate values flexibility which means the market provides more part time, home-based CFOs by the second. When you hire a part-time CFO, you receive the benefits of high-end financial expertise when in need while paying a fixed pre-negotiated monthly fee. This all-in-one fee is often times wayyyy more cost efficient packaged in a single service offering than if you tried to pay for each service separately. If you’re struggling to scale operations, need streamlined financial systems or unsure how to work around a profit and loss statement for the year, I’d suggest hiring a part-time CFO asap.
The bottom line is: Hire a CPA if you’re looking to get your taxes and bookkeeping in order; hire a CFO if you’re focused on establishing sound financial systems and fiscal growth (plus taxes and bookkeeping!).
To more money in our pockets,
Chika
P.S. Yes, you guessed it! I offer online CFO services that include general accounting duties like filing tax returns and bookkeeping. Think of it as a full financial offensive team – my team will assist you with: structuring a thriving business based on tax strategy; minimize your payments to Uncle Sam;, set yourself up for a cash-rich retirement; organize your financials in a way that allows you to sleep peacefully like a baby and discuss business with a CPA (me) that will be by your (virtual) side every step of the way as you run your bodacious business! If CFO services sounds like just the thing your business needs right now, then hit reply and let’s chat!
P.P.S. Follow me on Instagram for more tax tips and business advice like this, and some pictures of my face 😉
