As your business grows, so do your financial needs—and so does the confusion around who does what. If you’ve ever wondered whether you need a bookkeeper, an accountant, a CFO (or all three), you’re not alone.
Here’s a quick breakdown to help you understand the differences—and when each role makes sense for your startup:
📘 Bookkeeper: The Day-to-Day Organizer
A bookkeeper is responsible for keeping your financial engine running smoothly on a daily basis.
What they do:
- Track income and expenses
- Categorize transactions
- Reconcile bank and credit card accounts
- Maintain the general ledger
When you need one: When you start transacting or take investment, a bookkeeper keeps your records clean and up to date—crucial for tax prep, budgeting, and operational visibility.
Think of a bookkeeper as the person who lays the financial foundation. Without them, everything else wobbles.
📊 CPA: The Compliance and Reporting Expert
An accountant ensures your financials are accurate, tax-compliant, and properly reported.
What they do:
- Prepare and file taxes
- Produce financial statements
- Advise on tax strategy
- Ensure compliance with GAAP (if applicable)
When you need one: Typically at tax time—or if you’re applying for loans, grants, or need audited financials. Accountants analyze what’s already happened to keep you compliant and reduce your tax liability.
Accountants look backward to ensure everything is correct and above board.
📈 Fractional CFO: The Strategic Growth Partner
A fractional CFO is your forward-looking financial strategist. They’re not just about managing money—they help you make it (and keep more of it).
What they do:
- Build financial models and forecasts
- Analyze burn rate and cash runway
- Lead scenario planning
- Support fundraising, board reporting, and exit readiness
- Advise on pricing, hiring, and scaling decisions
When you need one: When your decisions start having serious financial consequences—especially in the Seed to Series B stages—a fractional CFO helps guide growth without the full-time CFO price tag.
Fractional CFOs turn financial data into business strategy.
The Bottom Line
- Bookkeepers record what’s happening.
- Accountants report what happened.
- Fractional CFOs lead you into what’s next.
Choosing the right role depends on your stage, your goals, and the complexity of your business. Many startups begin with a bookkeeper, add an accountant as things formalize, and bring in a fractional CFO when strategic financial leadership becomes a must.
