Salt Lake City Bookkeeping Blog

No matter how well you run your organization, hiring a small business consultant can give your company a powerful edge. The right consultant will not only provide better clarity into how effective your operations are, they’ll help you promote solid business growth through solid business planning.

Whether you’re new to business, new to bookkeeping, or just want a refresher in strategic accounting, there’s a lot to be said for exploring the bookkeeping tactics most likely to enhance your company’s performance.

Effective accounting strategies are vital for business growth. In fact, gathering, recording, and analyzing your company’s financial information is the best way to gain valuable insight into your short-term and long-term operations.

The terms bookkeeping and accounting are often used interchangeably, but there are some key differences that distinguish one from the other. While both functions play essential roles in managing your company’s finances, it’s important to understand the nature of their relationship, and how bookkeeping and accounting ultimately work together to ensure the success of your business.

I spend a decent amount of time in my truck driving by myself in remote places. I think that has something to do with being a fisherman in Montana.

I've been working on our exit plan lately. Does that mean that we want to sell our business? Absolutely not! So why am I going through the process of exit planning? 

Hiring a CFO is a big decision. CFOs can have a profound impact on your company. However, a CFO also adds to your overhead costs. If you're hiring an in-house CFO, you will have to pay for the recruitment process, salary, training, benefits and many other costs associated with a new employee.

The average entrepreneur has a justifiable belief in their ability to do whatever it takes to run a successful company. After all, they come up with terrific ideas, and launch them as bona fide businesses. But it’s at this point that many business owners become so involved in the day-to-day running of their enterprise, that big picture concerns like financial awareness and long-term planning fall by the wayside.

Most small businesses and startups need nothing more than a bookkeeper in their earliest phases — someone to keep the accounting records current and to produce basic financial statements. You will eventually need multiple bookkeepers and maybe a tax accountant to keep your books and tax situation in top shape. If you begin to feel the need to secure more complex financing than you might find in a trip to the bank, it’s time to consider the difference between a bookkeeper, a controller and a chief financial officer (CFO).

In larger or more mature companies, each has a specific role to perform. Determining whether your company needs all three will depend on your assessment of the breadth, depth and complexity of your financial needs.

Let’s take a look at the basic definitions of each role.

Every time I go through the grocery store self-checkout, I always think to myself, "Is this our business 5 years from now? Will accountants even be needed in the future?"