Bookkeeper, Controller or CFO?
Bookkeeper, Controller, CFO. Are you uncertain about what each role emcompasses? Or when you should outsource the role vs. hiring someone in-house? We hope this will help!
Should I hire a bookkeeper?
I get this question a lot. The truth is that a business of any size needs a person to handle their books. When first starting out, outsourcing a bookkeeper is the best option as it reduces your costs since you only pay for the time you need. And by having a bookkeeper throughout the year, you will save money on your accountant at the end of the year, since there’s less for them to do.
A big mistake that small business owners make is thinking they can do the books on their own. Once the season gets busy, the last thing owners want to do is the books at the end of the day. The result of leaving the books until the off season is a nightmare that ends up costing you more money and more headaches.
So, what does a bookkeeper do? The bookkeeper will enter all the payables, record payments received, record payments made directly from the bank, process payroll and create cheques.
Then there is the controller – the controller is the next step up from a bookkeeper. They are responsible for the Chart of Accounts, cash flows, bank reconciliations and general journal entries. They often are also the one that creates the budgets.
Then we have a CFO (Chief Financial Officer) who is responsible for managing the team, financial statements, projections, bank negotiations, signing authority, and providing cost analysis and projections.
So why should I outsource these positions?
Outsourcing allows you to pay for only the services and expertise you need. If you are a relatively small company (under $1M) and simply require some bookkeeping services, outsourcing allows you to have an expert enter your financials at a more cost-effective price. Once you reach sales of $2.5-$4M, you will need a controller. As your sales grow, so does your expenses and payroll. As well, it will now be very important for you to stay on top of your finances monthly. At this size, just doing them for the year end doesn’t cut it.
By the time you reach $$10-$20M in sales you will want all three positions filled in-house.
The Nextra Difference
We offer the services of all three positions - bookkeeper, controller, CFO - as an outsourcing company specific to the landscaping industry. Letting us handle these positions allows you to retain your focus on what you do and love, which is creating and maintaining beautiful landscapes, while ensuring your finances are being properly recorded and managed.
We will save you time at year end with a full set of books, reconciliations and P&Ls ready for your accountant to file your taxes. Book a call HERE to discuss your options.
