Feras Alhlou breaks down four financial roles for entrepreneurs. Hire a bookkeeper to handle daily transactions, a CPA for taxes and reports, and a CFO when you're scaling and need strategy. Each handles different needs: tax support, audits, and cash-flow optimization.
Should you hire a bookkeeper, an accountant, or a CPA? My advice to all entrepreneurs: get some help. But what kind? There are bookkeepers, accountants, CPAs, and later controllers and chief financial officers, CFOs. Some accounting professionals and companies wear many of these hats, while others focus on one function. Bookkeepers are great for day-to-day tasks like data entry and recording transactions. Accountants and CPAs— that's certified public accountants— provide financial guidance and tax advice and can support you during an IRS audit. CFOs typically focus on strategies and approaches to improve the financial performance of the business and meet its future targets. If you're just starting, a bookkeeper is fine. They'll help you make sure your chart of accounts, general ledger, and other basics are set up correctly. A CPA is a good idea to help with reports and, in my opinion, should be the same person doing your tax preparation and filing. When you're growing and scaling and your financial data gets complicated, that's when a CFO can be invaluable. They'll help you maximize cash flow and prepare for future expansion.
