You probably have seen these titles floating around and many people don't understand the distinction, so let's break it down.
The Bookkeeper
Every business should have a bookkeeper. The bookkeeper is in charge of entering the data in QuickBooks, paying the bills, invoicing customers. (related: The pros and cons of DIY bookkeeping for your business).
The Controller
A controller is a step on top of a bookkeeper and is usually used in larger firms.
- A controller will be tasked with managing the bookkeeper.
- They will create customized daily, weekly, and monthly financial reports to meet the specific needs of the business.
- They have the knowledge to choose and maintain financial software.
- They can take over the basic business cash flow management, depending on the size of the business.
- For smaller businesses, the controller will perform the tasks of the bookkeeper.
The CFO
The CFO is in charge of the overall financial management of a company. Planning, projecting, measuring, and tracking financial and operational progress all fall under the CFO’s umbrella.
A CFO’s duties include:
- Supervising accounting and operational departments and can perform all functions of a Controller.
- Analyzing and reviewing the monthly Income Statement, Balance Sheet, and Cash Flow with the management team. Does not focus on the numbers only- but looks at the story behind those numbers, and drives towards data-driven decision making.
- Creates complex financial projections to aid in strategic decision making, and is an active player in the strategic management of the business.
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