Fractional CFO services and Certified Public Accountant (CPA) services are both important financial professionals that can help businesses manage their finances. However, there are some key differences between the two roles. Fractional CFOs provide a more holistic approach to financial management, while CPAs focus on specific tasks such as tax preparation and auditing.
It is important for businesses to understand the differences between Fractional CFO services and Certified Public Accountant (CPA) services in order to make an informed decision about which type of professional is best suited for their needs. This article will explore the key differences between fractional CFOs and CPAs, including their responsibilities, qualifications, and use cases.
What Is The Difference Between a CFO and a CPA?
Fractional CFOs specialize in managing the business side of a company, while CPAs focus on specific tasks such as tax preparation and auditing. Fractional CFOs work with the CEO of a company to make sure that their finances are managed properly. Fractional CFOs can help businesses develop financial plans and oversee strategic decision-making for the organization. They can also assist with developing a strategic plan for improving the value of an organization by focusing on areas of weakness and increasing revenue, cost savings, or productivity rates. In contrast, CPAs focus more specifically on certain tasks like preparing taxes or auditing financial records.
A CFO is not necessarily a full-time employee, but rather one with only part-time employment status, typically earning less than the salary of other employees at that company. This usually includes work as an accounting manager or treasurer of smaller organizations. This is what the term “fractional” implies.
How Do We Know If We Need Fractional CFO Services?
Now that you have a better understanding of the differences between Fractional CFO services and Certified Public Accountant (CPA) services, does your small, medium or large business require a fractional CFO?
For many businesses, Fractional CFO services can be a great asset. By leveraging the expertise of a qualified financial professional, companies can gain insight into their financials and make more informed decisions. Fractional CFO services are especially beneficial for small to mid-sized businesses that don’t have the resources or budget to hire a full-time CFO. With fractional services, companies can access the same expertise and guidance as those with larger budgets, but on an as-needed basis. This allows them to focus on their core operations while still having access to the financial insights they need for success.
For large business, especially during a merger or time of transition, Fractional CFO services can be a saving grace. Before the company is ready to make a full-time hire or create a new position, Fractional CFO services can step in and handle important financial matters with expertise and experience.
Fraction CFO services are one of the things we do best. Call us today to find out if your business can benefit.