What's the Difference? - CFO Versus a Controller, Accountant Or Bookkeeper

This article compares and compares the duties of a financial director with an auditor, accountant, or accountant. Many business owners do not understand the differences between roles and the amount that a CFO can bring. In addition, many business owners do not feel that they could be reached by a CFO, however, a part-time CFO associated with the business owner and management is essential. A part-time CFO can spend a day or two in business and add value to the result.

IN. Duties of the CFO:

1. Money management

Money management involves understanding the "management cycle" of your business (that is, cash after the cash cycle). To improve your "management cycle", you need to understand what it means, how it counts, and what it affects before you can improve it. Does cash expect your cash balance in 6 months? Most companies are currently facing cash flow problems and cannot think about the coming week. Implement a Cash board Dashboard, a 13-week cash flow forecast, and view cash flow reports at least monthly. The key to any business is to focus on cash, not just EBITDA and net income because cash is king!

2. General financial refinement

• Soundboard for the owner to make important decisions as a trusted advisor

• Several cash flow surprises using the Cashboard-Dashboard and 13-week cash flow forecasts

• Better trained accounting staff

• Better documentation and control

• Some surprises related to paying taxes and effective CPA communication for taxes

• Alternatives, recommendations, and solutions to business problems

3. Budgeting

The ongoing process of developing, implementing, and evaluating the budget and related deviations from actual results. The CFO helps correlate the company's operations and financial results so that the management team understands the financial impact of the decisions it makes. 4. Conformity

The ongoing process of meeting the bank's requirements, contracts with investors, tax on working documents for management reporting, insurance, and business records.

5. Financial management and administration

Analyze and evaluate monthly profits and losses and balance and cash flow with the board of directors and the management team. Look at the story behind the numbers, not just the numbers. Moving towards data-based decision making. Review important business metrics using the dashboard, which provides you with important statistics on the areas needed to control your working capital. For example, a report is generated each month with information such as age to accept, days to accept, inventory level categories, inventory transfer, and payment days. These statistics should be checked and compared every month to see if the problem is getting better or worse. Trend and partner analysis and decision-making are important functions of the CFO. If the data show a trend that is not good for society, immediate action is needed.

Check the activity, work, and quality of the Controller / Accountant / Accountant. Capital and treasury management. CPA relationship management, business lawyer relationship.

Working capital planning and forecasting. The simple Cashboard Dashboard will focus on managing the right areas and help the company move towards better cash performance.

Check financial reports before sending them to investors as an external party.

6. Key ratio

Monitor and analyze key financial indicators against industry benchmarks. Implement plans that go beyond certain industrial conditions, or make decisions that do not meet some, do not, and do not. 7. Detection

Gross margin analysis per product line, product or customer is critical for small businesses. Transition to internal systems to provide gross margin management information for product lines and products.

8. processes and systems

Design, implement and maintain accounting processes and procedures. Processes, whether documented or undocumented, are present in all companies. This is the way employees perform the work needed to produce products or services. In most small businesses, the basic processes for completing a task are rarely documented or generally taken into account (ie the system). Developing efficient and effective systems and processes can often reduce costs and/or improve productivity. In companies where there is a planned exit or merger or sale of the company, documented processes are necessary so that the buyer can get more value from the company and the investor/buyer does not even need these things. It goes beyond the company's financial area to operations, sales, marketing, technology, HR and all aspects of the business. The more these process areas are fully documented, the higher the costs for the company.

9. Internal controls

Structure, work and flow of powers. Theft prevention, money tracking, and accounting processes that restrict access. Internal control methods can reduce process variability, leading to more predictable results. Emphasis is placed on the efficiency and effectiveness of operations, the reliability of financial reporting and compliance with laws and regulations.

10. Strategic planning

As the business grows after the exit/liquidation event, a strategic planning process is essential. It is not a document, but an ongoing process of analysis and description of strategic objectives and tactical implementation. The components of the strategic plan include a SWOT analysis (strengths, weaknesses, opportunities and threats), ideal customer profile, competition analysis, and short-term and long-term action plans. The CFO leads the company in developing an exit strategy to maximize business value.

11. Corporate credit and collection

Build and improve your business credit position. Personal separation from corporate credit reporting so that the company's credit stands on its own after seven steps of success in business loan development. 

12. Auditing

Perform external accounting and other audits as needed.

13. Information system

Monitor the ongoing development of internal operations for information systems. Properly documented IT systems, software monitoring, and hardware assets are key factors when a buyer completes an IT M&A due to activity for a company looking to sell. 14. Finance

Lead the company to develop an efficient capital structure by guaranteeing debt financing on attractive terms, managing creditors and ensuring compliance with credit terms.

B. Responsibilities of the auditor/accountant/accountant:

1. Basic obligations

The primary responsibility of the auditor/accountant/accountant is to maintain and operate the company's books and records. Prepare, control, balance and control various accounts using standard accounting methods. Perform daily / weekly / monthly financial transactions using QuickBooks or other accounting software. It maintains key leaders who record the status of the various accounts and ensure that all accounts are balanced. Prepare the financial statements. Ensure the accuracy of computer accounting and record-keeping systems. * Payments to the account

* Receivables

* Invoice payment

* Payroll and control registers

* Bank renewal

* Financial Statements

* Corresponding messages

* Payroll services

* Write a Payroll Check

* Payment of tax return

* Monthly, quarterly and annual payment reports

* Federal, state and local tax reports and filings

* Accurate and timely data entry

* Track inventory

* Available for telephone conversations

* Verification of test balances

* Invoice matching

* Interface with suppliers as needed

2. Standard Operating Procedures (SOPs)

The Accounting and Accounting Manual documents standard operating procedures under the direction of the Chief Financial Officer. Help the CFO create complete accounting process documentation, monitor improvements, and update the process to add simplified accounting/accounting processes.

3. Conformity

Maintain best accounting and accounting practices by Generally Accepted Accounting Principles (GAAP). C. Conclusion:

There is a significant strategic and tactical difference between the amount made by the CFO to the company's management and the auditor, accountant or accountant. The key for a CEO / business owner/entrepreneur is to schedule an introductory meeting with the CFO, gain access to business needs, and define an action plan that will take the company to the next level of sales and revenue. As mentioned in the introduction, most small businesses cannot afford a full CFO, so the ideal scheme is a partial or virtual CFO Solution. The key is to find a CFO who has experience in being a trusted advisor to the CEO / business owner/entrepreneur and providing financial, operational and business knowledge.