- On July 20, 2020
Accounting is an integral part of a business. An accountant does not only record the financial transactions and keep them in place, but they also help oversee a business’ financial health and make sound decisions towards bettering it.
If you run a startup or have a growing business, it’s imperative to hire a small business accountant. When it comes to this, you have the option to hire a regular accountant or a virtual CFO. Getting the right person to work on your business’ accounting facet is crucial—which is why it’s important to know the difference between the two.
In this article, we’ll cover the differences between an accountant and a virtual CFO. Read below to know what to select for your business before hiring an accountingservice in Melbourne.
Regular Accountant vs. Virtual CFO
Now let’s take a look at the differences between a regular accountant and a virtual CFO. To give you a better view, here is a side-by-side comparison of the two roles and what each entails.
What they are
- Business accountant: A business accountant is a professional who records and monitors the financial transactions that go around in your business. They also communicate your business’s financial status with all the stakeholders involved.
- Virtual CFO: A virtual CFO is a chief financial officer who serves as your business partner and helps manage your finances to further grow your business.
What they do
- Business accountant: An accountant performs numerous functions, which include issuing an invoice to customers, receiving an invoice from suppliers, and issuing your employees’ wages. Other tasks involved are reconciling bank statements, coming up with financial statements, reporting to the management, and filing tax reports to the government.
- Virtual CFO: While a virtual CFO performs the tasks of a regular accountant mentioned above, they do not only take care of a business’s financial side. A CFO becomes a strategic partner who works with you to manage your flow of finances and help your business expand. Part of their functions includes making decisions on financial investments, examining business spending, and making recommendations on generating more income.
What to Choose for Your Business
Choosing between a regular accountant and a virtual CFO can be critical and instrumental to your business’s success.
If you need someone to record and manage your finances, such as preparing financial statements, issuing invoices, and filing taxes, an accountant will be your best option. In this case, you will be more in control of making business decisions, having investments, and growing your company.
On the other side of the spectrum, a virtual CFO can be your business partner who can help you manage your finances, recommend good investments, and influence your business decisions. Ultimately, a virtual CFO’s goal is to help your business, grow, thrive, and succeed over time.
Overall, both an accountant and a virtual CFO play a crucial role in your business. If you simply need someone to crunch your numbers, then a regular accountant can be your best bet. If you need a strategic partner who can help grow your business, then a virtual CFO can be your best option. We hope that this blog has shed some light on the differences between an accountant and a virtual CFO to help you choose the right person for your business.
Are you looking for a small business accountant to help you out with your business? We’ve got you covered. Thinkwiser business accountants in Melbourne provide accounting, Virtual CFO and bookkeeping services. Get in touch with us today!