Do you need a CFO or just a bookkeeper?

If you’re building a business and wondering whether it’s time to bring in some financial help, you’re not alone. One of the most common questions founders ask is, “Do I need a CFO, or can a bookkeeper handle what I’ve got going on?”

The short answer: it depends on the stage of your business, your goals, and the complexity of your finances.

But if you want to learn more, the first thing you need to do is to understand the difference between a bookkeeper’s and a CFO’s responsibilities. 

In simple words, think of a bookkeeper as the person who keeps your financial engine running day to day. They handle tasks like:

• Recording transactions

• Reconciling bank accounts

• Managing payroll

• Making sure bills get paid

• Generating basic financial reports like your P&L and balance sheet

A good bookkeeper keeps your books clean and accurate so you can stay organized and avoid headaches when it’s time to file your accounts. If you’re an early-stage business with straightforward income and expenses, a bookkeeper might be exactly what you need.

A CFO (Chief Financial Officer) operates at a much more strategic level. They use your financial data to help you make big-picture decisions. That can include:

• Forecasting cash flow and helping you plan ahead

• Building budgets and financial models

• Helping with fundraising or manage investor relations

• Optimising your margins and spending

• Advising on pricing, hiring, and growth strategies

In short, a CFO helps you understand the “why” behind the numbers and what to do next. They’re thinking six months or two years ahead, not just closing the books each month.

So Which One Do You Need? Here’s a quick gut check:

You probably need a bookkeeper if: