Hiring financial professionals like a bookkeeper, accountant, and part-time chief financial officer can significantly enhance the productivity and efficiency of your business. Here’s a detailed look at how each role can contribute to your productivity and success.

Bookkeepers: The Basics of Financial Management

Bookkeepers manage a business’s day-to-day financial transactions. These financial professionals accurately process and record every transaction, from invoicing clients to paying bills, processing payroll, and remitting quarterly taxes. Additionally, their experience allows them to streamline these processes, which means smoother operations.

With consistent financial reports, business owners have a better picture of their business’s fiscal health, leading to better decision-making. Neatly organized bookkeeping records also make audits much less stressful.

When you hire a bookkeeper, the impact on your productivity is almost immediate. Delegating the day-to-day financial transactions will free up several hours (or more) of your time every week.

Accountant: The Strategist for Financial Health

While a bookkeeper handles day-to-day transactions, an accountant takes a broader view. Accountants analyze and interpret financial data and provide insights and strategic advice. For example, they can help business owners create realistic budgets, analyze costs, and suggest ways to reduce expenses. They can also identify financial risks and recommend risk mitigation measures. More importantly, they will ensure your business complies with tax laws, helping to avoid penalties and audits.

As I mentioned in my article on deciding to delegate, you could file your business’s income taxes, but an accountant can do it faster. Besides, they learn, understand, and implement the latest (and ever-changing) taxation regulations. Just like you’re a specialist in your industry, accountants are specialists in theirs.

Chief Financial Officer: The Visionary for Business Growth

Typically, large corporations have a chief financial officer (CFO) who focuses on the company’s economic future. They consider the benefits and drawbacks of long-term savings and capital investments. CFOs examine income, expenses, and cash flow to create long-term value for the company.

Unfortunately, not all small business owners can hire a full-time CFO. However, they can hire a part-time or fractional CFO. These experts (typically chartered professional accountants (CPAs)) bring high-level strategic thinking to the table, usually at a fraction of the cost of a full-time CFO. A fractional CFO can elevate productivity by providing the following:

• Strategic Leadership: They work with the business owner to determine their long-term goals and develop and implement appropriate financial strategies. These long-term plans save business owners from scrambling to do last-minute research and decision-making.
• Resource Allocation for Growth: Fractional CFOs suggest ways the business owner can assign assets (funds, equipment, staff, etc.) to improve income and minimize expenses. In fact, planning for scalable financial systems helps businesses grow without encountering financial restrictions.
• Financial Oversight: Many small business owners (me included) are so busy working in our businesses that we can’t see the proverbial forest for the trees. For example, we might feel that making a bigger investment in one of our products or services is a good idea even though it might not be. A CFO, however, looks at the financial data without emotion and can guide business owners down a more profitable path.

When business owners examine well-prepared information and get a high-level overview of their company’s financial position, they make better decisions. Better decisions lead to doing the appropriate work at the appropriate time, which improves the company’s productivity.

Choosing Financial Professionals

If you have a small business, choose financial professionals who are familiar with your:

• Business Structure: Corporations, partnerships, and sole proprietorships have different needs.
• Legal Jurisdiction: Each country/province/city has different taxation laws.
• Industry: Some industries have specific financial reporting requirements.
• Business Systems: The professionals should be comfortable using your accounting system, whether paper or digital.
• Communication Style: Choose professionals who are comfortable with the type of communication you prefer, whether in-person or virtually.

Integrative Impact on Productivity

• Working with these professionals can profoundly impact your business’s productivity.
• Managing routine tasks efficiently and the availability of strategic guidance means you can streamline and focus your business operations.
• Access to accurate, up-to-date financial information allows you to make well-informed decisions and quickly pivot in a better direction if necessary.
• When you optimize your resources, it enables the business to innovate, grow and pursue new markets.

While Out of Chaos doesn’t offer these services, we use them, and they’ve been game-changers. We recommend these financial professionals to other small businesses that want to improve their financial management and productivity. Bookkeepers, accountants, and fractional CFOs each bring specialized skills and insights. Together, they are a powerful team that supports long-term success. It’s not just about managing finances; it’s about propelling your business forward.