Bookkeepers vs. CFOs: What is the Difference?

Depending on the size of your business and strategic objectives, there are many options you can invest in to manage your financial operations in a way that would positively reflect on your overall revenue.

To understand what your business needs, you have to understand the difference between bookkeepers and chief financial officers (CFO) and when to use each.

The goal for both services is to manage your finances right to gain deeper insights into your business operations that help in creating more informed decisions.

The Role of Bookkeeping

If you want to keep your small-medium sized business growing, it’s better to consider outsourcing a bookkeeping company to help you increase the accuracy of your financial data, in terms of invoicing, payrolls, income, expenses, and more.

When to Hire an Outsourced Bookkeeping Company?

Bookkeeping companies come in handy when:

1. Business owners do not have any background in accounting
2. They are not familiar with tax code and tax avoidance strategies
3. They waste too much time doing the books themselves and not focusing on core business tasks
4. The business is experiencing rapid growth in a short period of time

Benefits of Hiring experienced Bookkeeping Services

Privacy: Worrying about your financial data privacy? Outsourcing a virtual bookkeeping company can set your mind at peace because they can work on your finances with high confidentiality.

Reduce Time & Effort: When business owners decide to do their bookkeeping, they are probably wasting a lot of valuable time and effort. By hiring outsourced bookkeeping services, you are crossing off one routine-like task that can be handled more professionally by expert hands.

2. Accuracy: Ensuring the accuracy of bookkeeping data is something essential for your business performance. Professional bookkeeping companies are trained enough to handle every aspect of your finances with great care, enabling you to leverage your overall profitability.

The Role of CFO

If you are running a large business size, you need to bring in more sophisticated financial experts,

And here comes chief financial officers.

CFOs are mainly responsible for handling more complex financial management. They mostly take part in business decisions, financial planning, reporting, risk management, and record-keeping.

When to Hire a CFO

If you need help in one of the following procedures, you’d better outsource a chief financial officer:

1. Directing the company through mergers and acquisitions
2. Managing major business expansions to new markets
3. Managing assets with stakeholders
4. Managing and assessing financial risks
5. Planning both short-term and long-term financial goals
6. Market research and data analysis
7. Determining how to invest corporate assets

Chief Financial Officer Outsourcing Benefits

Operational Efficiency: CFOs can improve your operational efficiency through financial planning, budgeting, and increasing overall ROI. Also, they will develop and monitor KPIs to make sure all operations are profitable.

Strategy Development: CFOs play a significant role in creating long-term strategy, aligning business objectives with the organization’s financial direction.

2. Better Business Decisions: Providing fast and in-depth accounting services and accurate financial data that help business owners in making better-informed decisions.

What is Your Next Step?

Whether you are you own a small, medium, or large size business, ZADD Numbers will provide you with the right financial and accounting services that perfectly fit your business needs.

Ready to maximize growth and speed up profitability? Contact us today