This is a distinction we need to repeat on occasion, especially for new CEO\u2019s looking to pay a low wage for advanced financial analysis, whether with an independent contractor or an employee.\u00a0 Accountants are trained, certified and usually quite experienced in financial analysis, both creating and reviewing data.\u00a0 Bookkeepers are often trained on the job although sometimes more formally, and handle the physical work of accounting for the transactions.\u00a0 To expect a bookkeeper to provide analytical planning is to ask for something they often cannot provide, except in a cursory way.<\/p>\n
Why the discussion?\u00a0 Many early stage CEO\u2019s believe they can delegate design and creation of metrics, flash reports, analytical reports and more to their bookkeepers.\u00a0 And at some early stages, a bookkeeper is capable of preparing such information.\u00a0 It does not take long for a growing business and a knowledgeable CEO to quickly outgrow the lack of depth and sophistication such reporting usually offers, looking instead for deeper analytical tools.<\/p>\n
[Email readers continue here…]<\/em><\/span> On the other hand, many early stage CEO\u2019s are not trained and ready for such tools even if available.\u00a0 The lesson here is twofold.\u00a0 There is a benefit to using a good accountant to help devise critical reports for a corporation; and CEO\u2019s must quickly become financially savvy in the analysis of financial statements and metrics that measure the health of a business.\u00a0 To fail to have this skill is to reduce the corporation\u2019s capability to discover problems early and take advantage of growth opportunities.<\/p>\n","protected":false},"excerpt":{"rendered":" This is a distinction we need to repeat on occasion, especially for new CEO\u2019s looking to pay a low wage for advanced financial analysis, whether with an independent contractor or an employee.\u00a0 Accountants are trained, certified and usually quite experienced … Continue reading