This past weekend, I had the opportunity to share my grandson’s special day- his second birthday party. He was amazing. (What? You expected a grandfather to say something different?) He was happy, he was generous, he was patient, and he was verbal. He would run around the house (one of his favorite past-times), announcing “I am running around”. He announced what he was going to do next- play with his fire truck, play with his plastic dog, or dance. He made sure everyone knew what he planned to do.
Which gets me to the real purpose of today’s message. The difference between a bookkeeper, an accountant, and a CFO (chief financial officer). Most firms have no clue regarding the use or misuse of these various professions.
A bookkeeper makes entries into a (hopefully) valid accounting system. The bookkeeper may make wrong choices about various classifications, the bookkeeper may leave things unclassified, but, in reality, the bookkeeper is simply a clerk attempting to provide a financial record for an enterprise.
The accountant is charged with previous history of the firm. It is the charge of the accountant to insure that each expense is properly classified, to discern what may or may not be a deductible expense, and, most commonly, to prepare the tax submissions of the firm. When one needs to know the historical performance of the enterprise, the accountant is someone upon whom you can rely. One should also recognize that most accountants have never run a business (other than their own service business) and lack the fundamental skills and experiences that are invoked when one is charged with providing business successes.
The Chief Financial Officer (CFO) is charged with understanding the history of the firm- and its future direction. The CFO must be able to discern patterns and trends to elucidate the best path the organization can take to be/stay/become successful. The CFO can perform the function of a bookkeeper (at a very expensive cost disadvantage) or the tax preparation by an accountant (if the CFO is certified in such activity), but the CFO is, more importantly, a vital component of corporate management. The CFO is instrumental in developing systems and controls, training staff (including bookkeepers) to insure that reporting is accurate, timely, and forward-looking, as well to insure critical turn-around efforts (should they be needed) are effected.
So, what does this have to do with my grandson? He was feeling his oats this weekend. He was unsure what his new limits might be. His announcements for future efforts this weekend were a means by which he could ferret out if these behaviors are acceptable. Your CFO knows (or certainly should know) what to do. If you don’t have such a CFO- or don’t think you can afford one full-time (their value exceeds their costs), then call us (The Adjuvancy, LLC)- we’ll provide those services on an as-needed basis (with short, daily interactions, because they are critical for the enterprise’s success). We will help you ferret 
out the desired behaviors from your staff to garner success.
Kids always provide the amazing lessons always… don’t they?
The differences are very well explained….Thank you to your grandson for “inspiring” you to write this post. And yes…Happy Birthday to the little guy!
The trick is to be open to learn from each situation in which we find ourselves. Take care- and thanks for the comment!
Roy
Your information is straight to the point besides me being side-tracked of visualizing a cute birthday boy running around the house with everyone afixed on adoring his every move. A complete business plan would seemingly include the services of a CFO. Thanks for sharing.
It was even more amazing that the other three toddlers did not seem encouraged to join in (except to wear their fire helmets and to dance). It seemed no different than in a company, when the leader fails to engage all his/her “tribesmen” to join in the mission 🙂
It’s amazing Roy, that children are somewhat methodical and tactical in their day to day activities – if we look closely we can learn a lot of lessons, like you rightly noted, from kids.
Stella – Strategic Internet Marketing Tips recently posted..How to Increase Opt-Ins and Get More Buyers By Giving Away Free Reports
Thanks for your comment, Stella. We can learn from everyone. (Old proverb: Who is wise? One who learns from everyone.)
Let’s keep learning so we can grow our (and our clients’) businesses!
Hi Roy, I have twin nieces who turn 2 end of the week. They always teach me daily! Regarding your post, I like how you have been able to describe the differences between the three is layman’s term. It’s crystal clear the way you have put it!
Diana Simon recently posted..From Blogging Skeptic to Fan
We all need to grow – ourselves, our companies, and our clients. The trick is to know where we’ve been, where we want to go, and to monitor our steps to insure we get there. Thanks for your comments. Enjoy their birthday! Double trouble!
What a clear description, Roy! It’s often hard to describe what supervisors and managers do because their roles are so thorough and diverse!
Happy birthday to your grandson! Sending a thanks to him for being such a great example. =)
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Shanks for your comment, Samantha! It’s the “little things” that makes the difference!
Roy
What a great post and happy birthday to your grandson! Thank you for clarifying for me the different positions and I think it’s clear that your grandson has a promising future ahead!
Thanks so much for your kind thoughts, Suerae!
And, I relish the concepts that he- and my children and son-in-law- provide each and every day!
Roy