How Much Does Hiring a CFO Cost?
When I talk to business owners about Chief Financial Services (CFO), it is common for them to ask...
By: Shane Bender on Aug 10, 2020 2:00:29 AM
Fractional CFO’s have become increasingly important to most small businesses. Almost all businesses have a tax CPA to help them file their tax returns. As companies grow, they typically outsource to a bookkeeping firm or hire an entry-level office manager or accountant. So then why should any business need a fractional CFO? I have found that once a business is over $1-2 million in revenue, it makes sense to hire a fractional CFO, especially if you have these questions.
How can I get my company in the best financial position to sell?
What are some ways to improve operational inefficiencies and stop wasting money?
How can we improve my cash flow?
Which products, clients, or jobs are less profitable than others?
How can we gain more foresight into current business trends so we can prevent potential financial issues and make better decisions?
Let’s break down the difference between a typical tax CPA, a bookkeeper, and a fractional CFO.
Most business owners think immediately of tax planning and preparation when we think of the CPA. There are many different types of CPA’s. A CPA can be a CFO, but not all CFO’s are CPA’s. Also, many CPA firms will do bookkeeping in preparation for tax returns. The risk is that the accounting is tax focused and delayed rather than operationally focused. I have found that it can be more affordable and useful to have a bookkeeping firm separate from the tax CPA firm. There are a variety of CPA firms. If you are a small business owner, my suggestion is to hire a CPA for the following services:
A bookkeeper or entry-level accountant handles many of the following tasks:
There are different types and levels of bookkeepers. I have working with one firm for four years that I have found reliable and consistent in their bookkeeping. You can always contact me at team@bendercfoservices.com, and we can introduce you.
The CFO is much more operationally minded and has a goal to help the organization in the following ways:
As you can see, there are differences between these three financial roles. Bookkeeping is essential to any organization so that you have consistent and current information. A CPA firm is important for many areas, such as tax planning, audits, reviews, valuations, and compilations. Finally, A CFO will provide the financial insights to gain more clarity so you can make the most informed decisions and grow with more peace. The good news is that you can hire a fractional CFO that is quite affordable. Also, a good CFO can even connect you with a quality tax CPA and bookkeeper that can save time and money. Reach out to team@bendercfoservices.com for a free CFO Services Consultation.
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