CFO vs. Accountant – What’s the difference?

What’s the difference between a CFO and an accountant? We get this question a lot!

Imagine the relationship between a CFO and an accountant as similar to a general physician working alongside a specialist in the medical field. While their roles may overlap, each offers distinct and vital services.

Typically, an accountant is managing financial statements, annual audits, preparing tax returns, advising on areas that require efficiencies and cost-savings, and may also provide risk analysis and forecasting.

The value of a CFO is specialist strategic advice, forward planning, assistance with scaling/funding or exiting the business, as well as acting as a knowledgeable sounding board – all of which is capable of tuning and driving the performance of your business and enabling you to fulfil your life’s ambition.

So, while it may be tempting to try employing one person to do it all, adding a CFO will give you a valuable resource that can bring strategic thinking, analysis, and a plan for growth into your business.

 

Let’s look more at what each role involves

Accountant role

An accountant meticulously ensures accuracy and compliance, much like a general physician monitors overall health. This accuracy is vital for tasks like tax preparation, adhering to financial regulations, and auditing.

CFO role

Conversely, a CFO, resembling a medical specialist, delves deeper, extracting insights from financial records. They forecast trends, devise strategic plans, evaluate the profitability of different business segments, manage cash flow, and play an integral role in major decisions such as funding, mergers or investments.

Beyond the diligent record-keeping of an accountant, a CFO introduces a strategic perspective, helping the business navigate its financial future.

Click here to see more about the four different “hats” that a CFO wears.

Key similarities

Recognising the overlap and in a spirit of collaboration, The CFO Centre is fully committed to adjusting our services to ensure harmony and mutual respect. It’s paramount to us that existing accountants never feel threatened or undermined; rather, we aim for a partnership that enhances the financial strength and clarity of the business. What’s the difference between a CFO and an accountant? While it’s useful to understand each role, it helps to see the roles as a winning combination.

 

Your 12 financial building blocks

At The CFO Centre, we help business with strategic planning and business support in many areas:

1. Sell/Exit
2. Identify Risks
3. Review Business Plan
4. Source Funding
5. Improve Systems & Controls
6. Implement KPI Reporting
7. Increase Profit
8. Improve Cash Flow
9. Tighten Up Compliance
10. Optimise Tax & Legal
11. Audit Outsourcers
12. Build Strong Banking Relationships

 

Our flexible model means that we can flex with your company’s requirements. Whether you need to increase or decrease resourcing we can help, right now.

Our highly experienced CFOs are ready to work either remotely or at your offices – or whatever blend of the two suits you best. Book your free 30-minute discovery call here or call us on 1300 447 740 to speak to your local regional director.

 

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With thanks to Elechia Jones, Regional Director in NNSW for her insights into this topic.