What is the difference between a CPA & CFO
Over time, we have learned that many businesses have hired a CPA (Certified Public Accountant) under the false impression they are getting tax services with additional strategies that a CFO (aka Director of Finance or Financial controller would provide. Truthfully, these two professions offer very important but very different benefits to an organization. Here we help explain the difference between a CPA and CFO, as well as identify why you need both.
What Is the Difference Between a CPA and CFO?
As mentioned above, both a CPA and CFO are vital to your business’ bottom line. However their roles vary greatly from the other. When you think of a CPA, consider that their focus is more so on and around tax-time, whereas a CFO serves to bridge the revenue gap between tax seasons and support you through the entire year.
CPA duties are focused around taxes and time-sensitive strategies.
CPAs will generally focus on minimizing tax burdens through updated and accurate tax strategies that assist in maintaining your financial records in the event of an audit. They help you focus on timely changes to tax rules and how to benefit from any time-sensitive and relevant programs that help your business at tax time. This can be something you meet with your CPA on annually or even quarterly, as many businesses put aside tax funds each quarter.
Because of the annual or quarterly meeting with CPAs, the cost to hire them for their products and services tends to be less than that of a CFO. A CPA’s primary business comes during tax season when they are helping companies file taxes and refine their tax strategy for the upcoming year. This can sometimes prompt CPAs to market themselves as financial strategy coaches or experts the remainder of the year. Obviously, CPAs could have insight into such strategies, but it is vital that you do not hire a CPA to perform CFO tasks.
CFO specialties are more of a year-round focus to help your business’ revenue and growth.
CFOs will be plugged into your business far more regularly. This way, we can assist with budgeting, resolving cash flow issues, optimizing systems, raising capital, and more. When you think of CFOs, consider us more as a partner with whom you discuss short and long-term financial strategies to achieve your company’s financial goals faster, while saving both time and money.
CPAs and CFOs have different cost structures.
A fairly significant difference between a CPA and CFO can be the cost of their services. A CPA is likely less expensive than a CFO since you utilize their services as more of an as-needed basis. A CFO often has several years of financial and operational experience and proven track record of driving company success for multiple organizations. This is because CFOs typically spend their entire year with companies as they grow in size and success.
While a CPA does require a special license indicating their mastery of tax laws and regulations, they rarely have the same skills and experience of a CFO. For this reason, CFOs can cost more in their time and talent. Of course, you get what you pay for however.
How does Two Sense make CFO services affordable?
Since we here at Two Sense Consulting know the importance of both CPAs and CFO services, we personally have created a professional option that gives your business the support it needs at prices you’ll love.
As CFOs, we have a wide range of industry, operations, and corporate finance experience. We focus on current and future cash flow as well as long-range operational planning. This way, every aspect of your company is performing optimally.
Companies will usually hire a CFO when they need help in the following:
- Expedite financial growth
- Lessen expenses & expand current assets
- Measuring & improving profitability
- Manage expenses and cash flow
- Establishing systems, policies, and procedures
As Chief Financial Officers (CFO), we act as a business consultant dedicated to your company’s financial health. As your CFO partner, we will support making sound business decisions. This includes interpreting your financial statements and building forecasts to build your company in the future.
We understand that after 2020, we all can benefit from virtual solutions that are timely and cost-effective. At Two Sense Consulting, we work with your business remotely by connecting via video tools to provide financial insight.
We offer different pricing tiers that allow you to navigate your business with more confidence and earn back time to spend doing what you love and in a much more convenient and affordable way.
Whatever level of accounting help you need for your business, Two Sense Consulting can help you out. We have worked with startups and international hotels. Our experience has helped guide every single one of them on a better path for growth and success. Feel free to call, message, or email us so we can set up a FREE consultation and let’s see how we can help you!
