When you’re thinking about what you need for your business, it can be difficult to determine what is best for you.
Do you need basic bookkeeping help? What about Financial Advising? Maybe you’re looking for a business coach or CFO? We’re going to break down the difference between a CFO and Financial Advisor, so you can see which fits your needs best.
What is a CFO?
Your Chief Financial Officer (CFO) manages the financial activities of your company. They oversee the finance department, track cash flow, and analyze the company’s strengths and weaknesses. A CFO also keeps in mind all tax implications. Whatever moves your business makes, they will ensure that you adhere to tax guidelines and make the best decisions regarding taxes. They do all of these things, so they can advise you on the direction your company should take. Their focus is forward-thinking and strategic.
What Does a Financial Advisor Do?
A Financial Advisor also creates strategies, but they do so to help you eliminate risk and build wealth over the long term. They do this by analyzing your initial business plan and capital investment. Long-term, they can help you see where you should invest. Your advisor can look at all areas of your business, including succession planning and your own personal expenses.
So, What’s the Difference Between a CFO and Financial Advisor?
They do have a lot of overlapping jobs but think of your CFO as your financial and tax specialist. They are focused on the numbers of your company and making smart financial and tax-related moves to grow your business. A Financial Planner can be broader and tie in financial implications to your personal finances. They also help with outside investments for you and your company but don’t necessarily think about tax implications.
While there is a difference between a CFO and Financial Advisor, they are complementary roles. One is laser-focused on your business, and the other focuses on you and your business as a whole. Both can be beneficial for you and your business’s success.