There are three key people that should be in your A team.
a CFO or Chief Financial Officer
What do bookkeepers do?
They process day to day transactions of your business and they reconcile your bank statements and sometimes they have accounts payable and accounts receivable functions.
Sometimes, they also process your payroll!
But what's important about them is, what's the relationship between a business owner and a bookkeeper is relaying information between each other so that the bookkeeper knows exactly where to allocate those numbers and to show you what's important in the day to day numbers.
In the day to day running of your business, your bookkeeper will be the best person to ask because they will know exactly how much money is coming in, where it is going and where it is being allocated to. Tip: outsource your bookkeeping as soon as possible!
You can find a good value bookkeeper at around $50-$60 per hour.
If your time is worth more than a bookkeepers time, so if you're let's say charging for an hour, you can make at least $120-$150, you should outsource your bookkeeping process.
What does the accountant do?
As an accountant myself and working with Ben, what we do is we take your books at the end of the year, and do your tax returns and financials.
We advise you on the correct structures to implement so that you can achieve such tax savings.
What does a CFO or Chief Financial Officer do?
They look at key performance indicators, KPI's, and they make any recommendations for improvement either through cost management strategies or revenue growth strategies.
Let's say if you wanted to buy a new building in your business, who makes that decision?
As a business owner, you might know one or two things, but if you had all the information from the bookkeepers and accountant and if you're a CFO and you're experienced enough, what you know is, you can make a decision based on the financial statements that are provided. Not only that, the CFO also judges the performance of the business either through comparing with industry benchmarks or comparing with their budgets and their targets for the month, the week, the year.
What we can see is there's a bookkeepers, an accountant and a CFO and all three of them are important.
This is how you build an A team.
With these three key people in your business, you will always know where you are heading, where you're at and how to achieve your goals in the future.
Got a burning question about your bookkeeping, cashflow or interpreting your numbers?