Difference Between an Accountant & CFO and Why it Matters

⚾ An accountant is someone who records financial transactions and creates financial statements.  Think of an accountant as the person who keeps the score at a baseball game.

🔭 A CFO (Chief Financial Officer) is someone who is forward looking and focuses on planning.  Think of a CFO as the person who is on this ship looking ahead with a telescope.

The main difference between the two is that one is forward looking and the other looks behind.  Both are very important as part of any organization.

However, most organizations have an accountant, but not a CFO.  Or the CEO acts as the CFO, which is perfectly fine.  Other times, organizations try and make the accountant into the CFO, which doesn’t always work, especially if the skill set is not there. 

🚢 Without the CFO, without some type of financial planning in place, you are like a ship being drifted by the sea and going nowhere in particular.

I believe every organization should have a CFO or CFO function.

Not everyone can afford a CFO, or they are not large enough to have one. 

If you do not have a CFO, here are some things you can start doing to get yourself going in the right direction:

➡️ Create a budget.  This will get you thinking about the financial future.

➡️ List 3 organizational goals for the next 12 months.  Once those goals are listed, think about how it will affect your organization financially.

➡️ Talk with an advisor.  He/She can provide some insight on what you should focus on.