Managing finances for a business is challenging. However, the professionals who gain years of knowledge, experience, and expertise in their respective fields simplify it. Financial management of a business begins with maintaining complete, accurate, and up-to-date books (bookkeeping). Bookkeeping services small business identifies, classifies, and records monetary transactions in the appropriate books, whereas accounting deals with summarizing, interpreting, and analyzing the prepared financial records. It also involves preparing and filing tax returns and amounts. However, the financial management process does not stop with accounting and bookkeeping. A business needs to know what the future holds for them financially. Also, it must strategize to use finances efficiently and effectively. Guiding in the right direction becomes the responsibility of the Chief Financial Officer. Although both the accountant and CFO manage specific aspects of finance, businesses sometimes rely on one more than the other for all the activities. Many CFOs come from accounting backgrounds, and thus, they do not have much problem managing a firm's accounts. Similarly, accountants informally guide businesses in the long run financial direction. But, CFOs and accountants have different roles for the company and cannot replace each other. The outsourced CFO services include the following activities:
On the other hand, bookkeeping services for small business cover the following tasks:
Other distinguishing points for CFO and accountant include: Past vs. future: While an accountant focuses on previous records, preparing reports for the financial transactions in the year, balancing books, filing taxes, etc., a CFO considers the future. CFOs create strategies, plans, and pathways to achieve the goals. It means that the roles of an accountant and CFO don't conflict but complement each other. Pre vs. post-tax presence: A business requires an accountant to prepare the financial statements accordingly during and before the tax season. The accountant knows which rules apply to a firm, how to calculate taxes, and when to file the returns. On the other hand, a CFO comes into the scene after the tax season is over to recommend the business the direction it should choose.
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AuthorWhiz Consulting provides bookkeeping & accounting services for UK-based businesses. We provide outsourced accounting, bookkeeping, payroll and taxation services to Birmingham, London, Manchester, or other parts of the United Kingdom. We provide services to all businesses irrespective of the scale of operation and industries like real estate, hospitality, healthcare, e-commerce and so forth. We have accounting solutions for every business, with the experience and knowledge of all the popular accounting tools. We will assist your businesses in managing cash flows, financial statements, bank & day to day transactions record-keeping, and monitoring the overall expenses made by the business. We will ensure your books are kept neat and reconciled throughout the year. We provide our services at a competitive cost as compared to hiring local or in-house bookkeepers and accountants. |