Comparison
Bookkeeper vs Accountant vs Fractional CFO: Who Does What?
All three work with your numbers. Only one of them is paid to tell you what to do next.
A bookkeeper records what already happened and keeps accounts reconciled. An accountant files your taxes and prepares financial statements. A fractional CFO looks forward: forecasts, plans and straight answers on pricing, hiring and big purchases. Right Way Profits provides bookkeeping and fractional CFO work, plus Profit First coaching in between.
How do the three roles compare side by side?
| Bookkeeper | Accountant | Fractional CFO | |
|---|---|---|---|
| Looks at | Every past transaction | A finished year, for taxes | Cash, plans and decisions ahead |
| Main output | Current, reconciled books and a monthly close | Tax returns and financial statements | A forecast and a plan you run the business on |
| Questions it answers | "What did we spend last month?" | "What do we owe in tax?" | "Can we afford the next hire? What should we charge?" |
| How often | Weekly or monthly | Mostly yearly, plus quarterly estimates | On a set meeting rhythm |
| At Right Way Profits | Weekly QuickBooks Online bookkeeping, close signed off by Debbie | Not listed as a service | Three levels, from about $1M in revenue |
What does a bookkeeper do?
A bookkeeper enters transactions, keeps bank and card accounts reconciled, and closes each month so the reports are right. Good books are what every other number is built on. If they are weeks behind, start there.
What does an accountant do?
An accountant prepares your tax returns and financial statements and advises on tax. Most of that work looks back at a year that is already over.
What does a fractional CFO do?
A fractional CFO takes the strategic finance seat part time. That means building a cash forecast, turning it into a plan, and meeting with you regularly to steer: what to charge, who to hire, what to buy and when. You get that seat without a full-time salary.
Which one does my business need right now?
- Books behind, or you do not trust them: a bookkeeper first, because everything else depends on it.
- Books fine, but profit never reaches the bank: Profit First coaching.
- Big decisions made on gut feel and the bank balance: a fractional CFO.
- Tax filing is the only gap: an accountant.
Debbie DeKnight's view, from her own work with owners: most businesses need these in order, books first, then cash, then direction. Our post on why clean books come before CFO advice explains why.
Frequently asked questions
Can my accountant be my CFO?
Sometimes, but the jobs are different. Tax work looks back at a finished year. CFO work looks forward: forecasts, pricing, hiring and cash planning, reviewed on a regular rhythm. Ask whether your accountant does that, and how often you would meet.
Do I still need a bookkeeper if I hire a fractional CFO?
Yes. A CFO's forecasts are calculated from your books, so someone has to keep them current and reconciled. At Right Way Profits, Debbie's team does the bookkeeping and she reviews every monthly close.
Is a fractional CFO worth it for a small business?
It depends on whether big decisions are being made without a forecast. Debbie's Foundation level starts around $1M in annual revenue; below that, clean books and Profit First usually come first.
Where does Profit First fit in?
Profit First is a cash management system that sits between the books and the CFO work. It sets aside profit, owner's pay and taxes every time money comes in. See Profit First coaching.
Not sure which one you need?
Book a 45-minute call. We will look at where the business is and tell you which piece to fix first.