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Bookkeeper vs. CFO

How is a Bookkeeper different to Virtual CFO?

As Melbourne CFOs we are regularly asked what is the difference between a bookkeeper and a Virtual or Outsourced CFO.

When it comes to your business, it can be difficult to know what you really need. Especially if you’re not completely sure of who does what.

To help you to find the perfect fit for your business needs, we outline what is a CFO, and the main differences between a bookkeeper and a CFO.

How Does a Bookkeeper Help My Business?

You would usually hire a bookkeeper as an SME for recording your business transactions. This includes your sales, purchases, payroll, accounts receivable and payable, to name a few. It can also include bank reconciliation, record keeping and producing some basic reports.

Yet, a bookkeeper is not an accountant. They log and organise the figures, but rarely influence business decisions. Their skill level often takes them to a point but may fall short of producing a complete set of accrual based accounts. As such, the financial statements that a bookkeeper will prepare are usually reviewed by an accountant, financial controller or CFO.

Bookkeepers are becoming increasingly comfortable with using cloud-based accounting software. But, their services are often limited to the number crunching side of your finance need.


How Does a CFO Help My Business?

Unlike a bookkeeper, a Virtual CFO can offer you far more than just bookkeeping tasks. A CFO can act as your complete outsourced financial function.

Not only can a CFO provide you with expert bookkeeping, they can also handle your accounting tasks - all while utilising the latest technology and innovations to speed up your processes. As well as manage cash flow, assist in strategy decision making and risk management and prepare more detailed reports that can give you tangible outcomes.

With a focus on proactively installing modern business systems, arduous tasks such as organising accounts payable can be reduced substantially, from days to a few hours.

More than that, utilising a CFO gives you access to a far wider skillset than that of a bookkeeper. A bookkeeper’s duties will rarely change, whereas a CFO has the capability to evolve along with your business, offering you:

Cash flow management:

A detailed visualisation of your next 90 days cash flow so you can see what’s coming and make better operational decisions.

Business intelligence:

Increasing your speed and getting more information using cutting-edge cloud applications so you can make better decisions.

Performance management reporting:

Giving you the ability to monitor performance and report to stakeholders through live financial dashboards and monthly reports.

Strategic advice:

Identifying what drives your profit and developing strategies to maximise your business’ value.

Bookkeeping and accounting:

Organising your books and using the most recent technology and accounting controls to train your team.  

Still asking the question What is a CFO? Then click through to read more

Which is Better, a Bookkeeper or a Virtual CFO?

The answer to this question entirely rests on the needs of your business.

If all you need is someone to manage your books, a skilled bookkeeper will most likely get the job done for you.

But, if you want your business to improve its processes, to gain a competitive advantage and thrive in your market, a CFO can help you to meet your goals.

For example, as our services offered are fully customisable, you can get a solution that’s tailor-made for your business. You can pick and choose which areas you need help in, and watch as a highly experienced financial team transforms your business dreams into reality.

And, as it’s an outsourced service, the price of utilising a Melbourne-based VCFO is far less than that of an internal financial team or CFO. The price point available, as well as the combined wisdom of a VCFO team, ensures that you get maximum ROI for your efforts, all while enhancing your business so that it can excel.  

As VCFOs ourselves, we understand that finding the right solution for your business is of paramount importance. If you would like to learn more about the capabilities and benefits of hiring a Virtual CFO, the following pages may prove useful to you:

What is a Virtual CFO?

How Can Sequel CFO Help My Business?

What Does a VCFO Do?

What are the Benefits of a VCFO?

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