How does your accounting staff stack up?

Accounting StaffTitles in small business are always suspect because the definition is not held constant.  At the end of the day, it’s really about the work, the skills and the responsibilities.   To help better understand the nature of the accounting/finance arena with any business, I have created a task/responsibility chart and assigned each item to either 1) production or 2) CFO level management.

The conclusions are:

  1. If one person is doing all the work, you are either overpaying for production work or you do not have CFO level work being done.
  2. Every business that does over $1 million in sales needs access to a person at the CFO level.  There are no exceptions.
  3. For companies that do less that $25 million in sales, a full time CFO is not warranted.  Put you money to better use and bring in someone that is less than full time.
  4. The CPA and CFO do not do the same work.  It’s like a neuro-surgeon and a plastic surgeon.  They are both surgeons but have dramatically different orientations.  So goes the CPA and CFO.

Here is a chart that I use with new clients when talking to them about financial management.

CFO vs Operations Accounting Staff

Activity

CFO

Staff

Pay accounts payable on time

 

X

Collect Accounts Receivable

 

X

Invoice Clients

 

X

Complete Bank Reconciliations

 

X

Audit Bank Reconciliations

 

X

Issue Management Reports

 

X

X

Issue Financial Statements

 

X

Assess Financial Statements

 

X

Maintain policies and procedures

 

X

Create policies and procedures

 

X

X

Maintain chart of accounts

 

X

Manage the budgeting process

 

X

Manage the cash flow process

 

X

Review capital requests

 

X

Process payroll

 

X

Implement operational best practices

 

X

X

Develop performance measurements

 

X

Review control weaknesses

 

X

Formulate financial strategy

 

X

Formulate tax strategy

 

X

Formulate risk management strategy

 

X

Maintain banking relationships

 

X

X

Evaluate insurance coverage

 

X

 

 

Share This:

Facebook
Google+
https://www.floridab2bcfo.com/how-does-your-accounting-staff-stack-up">
Twitter
LinkedIn