Accountant, Bookkeeper, CPA, CFO… What’s the Difference?

Accountants, bookkeepers, CPAs, CFOs–there are a number of experts who can help you manage your restaurant or hospitality's finances. But keeping track of all the different titles and job descriptions is no easy feat! That's where we can help.

Every one of these positions plays a vital role in setting you up for long-term success, each with unique qualifications and responsibilities. Let's dive into these roles, helping you understand the distinctions so you can easily choose the right professionals for your needs.

Demystifying Titles

Accountant

Role

Accountants primarily handle analyzing the data that bookkeepers collect. They may also provide insights to help guide your financial decisions.

Qualifications

Many accountants hold a bachelor's degree in finance or accounting. While some choose to pursue further certifications, accountants are not required to become Certified Public Accountants (CPAs). That means that all CPAs are accountants, but not all accountants are CPAs.

Key Responsibilities

The typical to-do list of an accountant includes the following:

• Prepare financial statements
• Ensure compliance with tax regulations
• Offer insights into areas like cost management and budgeting

In general, the key responsibilities of an accountant are centered around high-level financial analysis.

Bookkeeper

Role

Bookkeepers are in charge of the day-to-day tasks of recording financial transactions.

Qualifications

Most bookkeepers are not required to have formal certification, although some pursue courses to get certified.

Key Responsibilities

The main responsibilities of a bookkeeper include:

• Managing invoices
• Keeping up with expense tracking
• Reconciling bank accounts
• Ensuring records are accurate and up to date

The work of a bookkeeper helps lay a foundation that, in turn, helps others perform their jobs.

Certified Public Accountant (CPA)

Role

A CPA is an accountant who has earned additional certifications. Because of that, they're authorized to perform more advanced and complex tasks, particularly those related to tax filings and audits.

Qualifications

In addition to passing a rigorous exam, CPAs must complete continuing education and adhere to strict professional standards.

Key Responsibilities

A CPA can offer a range of services, including:

• Conducting audits
• Filing tax returns
• Advising on financial strategy

If your business needs in-depth tax advice or representation when dealing with an IRS matter, you'd likely benefit from the assistance of a CPA.

Chief Financial Officer (CFO)

Role

A CFO is a high-level executive who oversees the financial aspects of a business, whether that means day-to-day operations or the long-term financial strategy.

Qualifications

In addition to having years of experience in senior financial roles, CFOs often hold advanced degrees in accounting, finance, or business administration.

Key Responsibilities

A CFO's primary responsibility is to ensure the business is financially sound. To do so, they may:

• Conduct risk management
• Perform financial planning
• Work closely with other executives

Working with a CFO is essential if you have a large business with complex financial needs.

How to Choose the Right Financial Professional

In large part, selecting the right professional comes down to your business's current stage and needs.

If you're…

→ Just starting out and need help with daily financial tasks, a bookkeeper is likely the way to go.

→ A growing company that needs a hand with financial strategy and compliance, consider working with an accountant.

→ Ready for in-depth financial analysis and advice and require specialized tax services or audits, look for a CPA.

→ A large business or have recently undergone rapid growth and need assistance managing cash flow, assessing financial risk, and developing long-term growth strategies, turn to a CFO.

Prosperity ABCS Has the Pro For You

Here at Prosperity ABCS, we offer the full range of financial services, from bookkeeping to CFO assistance. Our team understands the intricacies of the restaurant, hotel, and hospitality industries and will offer personalized advice that helps you achieve your business goals.

Our approach is about more than just numbers; it's about empowering your business by setting you up with the financial assistance and advice you need to thrive. Connect with us to get the bookkeeping, accounting, or CFO help your business deserves.