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What’s the Difference: Bookkeeping, Accounting, Controller and CFO

Two person sitting and working on a computer in an office setup at Synapse Accounting and Bookkeeping.
The financial success of your practice depends on your bookkeeping, accounting, and finance. While they may seem associated with one another, some key differences exist in these activities. Outsourcing bookkeepers, accountants, controllers, and CFOs can be tricky due to their varying roles. In this article, we want to discuss the comparisons between these services and give you some tips should you consider outsourcing them.

At Synapse, we value your financial strategies that propel your practice into success, growth, and a client-focused healthcare facility. This begins with understanding that saving your time and money can be solved by partnering with Synapse – equipping you with the best time for the best results.

Bookkeeping vs. Accounting

Think about the financial management of your healthcare organization. You can imagine the meticulous financial records are at the heart of it. This is where bookkeeping steps in. Simply put, bookkeeping is the recording of financial transactions. It includes the day-to-day creation of source documents, such as bills, invoices, and journal entries.

On the other hand, accounting is “the process of recording, classifying and summarizing financial transactions,” according to a Forbes (2023) article. The role of accounting is to provide a clear picture of the financial health of your organization and its performance, catalyzing resource management and strategic growth.

Although budgeting and the preparation of financial statements are tasks that may fall under bookkeeping, keep in mind that cost allocation analysis and forecasting can overlap with finance management.

Bookkeeper vs. Accountant

Many people fall prey to mistaking bookkeepers and accountants interchangeably. However, there are distinct differences between these roles. Take a closer look at their differences below.

  • Bookkeepers: These professionals are laser-focused on maintaining all of the financial records for the company. They compute, classify, and record financial data to keep financial records complete. Moreover, they perform routine calculations and ensure transaction histories are accurate by using accounting software. This can also look like invoicing customers, making sure bills are paid, ensuring there are no errors on any documents, and tracking revenue and expenses in general.
  • Accountants: On the other hand, these professionals have a holistic and comprehensive picture of your organization’s health. They monitor whether taxes are paid properly, identify potential areas of opportunity and risk, and assess financial operations. Depending on your data, an accountant’s job can be subjective to help you perform at maximum efficiency. Typically, they are in charge of drafting and managing budgets based on input from the finance managers.

In other words, bookkeepers are the ground workers who record financial transactions so that accountants can analyze financial statements and provide strategic recommendations.

Controller vs. CFO

There are two more roles that you will hear associated with any practice’s financial department – Chief financial officers (CFOs) and financial controllers. Both professionals help you determine which direction is best for your company. Understanding their key similarities and differences is important to put you on an excellent financial footing.

At a glance, their key difference lies in their primary focus: CFOs have a strategic, finance, capital raising, investor relations, and M&A focus while controllers are dedicated to day-to-day financial management tasks. The following is what you need to learn more about the two roles.

  • Controllers: At the organizational hierarchy, controllers are in the middle management or department heads. They take the information provided by accountants, double-check it for accuracy, and then report on the financial health. This includes day-to-day accounting, financial statement preparation, budgeting, financial planning, tax compliance, audit liaison, and financial reporting responsibility. As part of middle management, they ensure that the back office complies with regulations and protects the company from fraud.
  • Chief financial officers (CFOs): They manage at the executive level, working in the C-suite along with the CEO or COO. Being at the pinnacle of your financial department’s pyramid, the CFOs understand all of the financial statements and the wider market environment of the company, which enables them to accurately forecast and make informed decisions. Working with the financial controller, CFOs lead the historical accounting processes and prospective financial activities, such as budgeting, forecasting, cash flow, mergers, and investments.

Outsourcing Bookkeeping and Accounting With Synapse

Many healthcare practices are bogged down by inefficient day-to-day accounting workload that takes too much time and errors that hurt the bottom line. One of the best ways to increase the efficiency of your finance and accounts payable team is partnering with an outsourcing finance service company like Synapse. We have a team of highly experienced financial professionals who help multiple and solo practices reach their revenue goals. Lift the heavy burden of financial responsibility off your shoulders and consult with a Synapse expert today.

Contact us today at accountingsales@synhs.com or call us at (844) 384-7532.