What is the Difference Between a CFO vs CPA?
What is the Difference Between a CFO vs CPA?
The terms Chief Financial Officer (CFO) and Certified Public Accountant (CPA) often get used interchangeably. The truth, however, is that there are major differences between a CFO and CPA. Let’s take a closer look at what they are so you can choose the right professional for your the needs at hand.
What is a CFO?
CFOs are individuals who oversee a company’s finances & financial strategy. They monitor financial statements, analyze reports, manage compliance, and develop policies. They are strong leaders with impressive analytical skills and the ability to build positive relationships. While they support companies with both short-term and long-term goals, the primary objective is to drive long-term, sustainable growth.
What is a CPA?
A CPA is a licensed accounting professional who handles a variety of finance and
accounting, auditing,
tax, and compliance tasks. They audit the books of a business, prepare tax documents, advise on tax strategies, serve as litigation consultants in lawsuits, and more. Most CPAs are very analytical and detail-oriented. In addition, they are proficient in various tax and accounting software programs.
Key Differences Between a CFO vs. CPA
Now that we’ve defined a CFO and CPA, let’s dive deeper into how these two professionals are different.
CPAs Manage Tax Strategy
Taxes can be confusing and overwhelming. That’s where CPAs come in. They have the specialized knowledge and training to audit and inspect financial records and prepare tax reports. With a CPA, you can ensure your finances are tax compliant, reduce your tax liability, and manage tax audits in the event they arise.
CFOs Focus on Financial Strategy
While CPAs offer tax services, CFOs allocate their efforts to strategic business planning. Their focus is to make sure your business is performing optimally. They may help you accelerate financial strategy and growth, measure and improve profitability, establish policies and procedures, and maintain relationships with shareholders. Essentially, they provide support with crucial, high-level tasks.
Access to a CFO or CPA is Within Reach
Fortunately, you don’t have to hire a CFO or CPA on a full-time basis. You can opt for a fractional CFO who offers part-time, shared services. In addition, you may choose a CPA that works for you on a part-time or as needed basis. With fractional CFO services and occasional CPA services, you can save a great deal of money while still receiving the expertise your business needs to thrive.
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