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.
Would you like to learn more about virtual CFO? check out this page.
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