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Who Are The Key Players On Your Accounting Team?

By Analytix Editorial Team

June 11, 2018 0 Comments
Who are the key players on your Accounting Team

Financial sustainability of a business depends on several factors, including its accounting and bookkeeping functions which form the basis of strong financial operations. The presence of robust financial operations typically indicate diligent bookkeeping and accounting practices.

Furthermore, a reliable accounting division in a business may be determined by the collective strength of the accounting team’s individual players.

A well-staffed team of professionals can ensure that the accounting data is accurate, thus helping to create strong and reliable financial reports for the company’s decision makers. Here are some key contributors who make up an accounting team:

  • Accounting Manager

The Accounting Manager reviews work performed by the accounting staff and also manages overall accounting activities. An accounting manager typically works closely with accounting support staff as well, scrutinizing accounting reports and managing everyday accounting operations.

  • The Bookkeeper and the Accountant

The bookkeeper tracks all transactions undertaken by the business. Ensuring accurate reconciliations, balancing accounts payable, and tracking receivables are also dependent on the bookkeeper’s diligence. A bookkeeper’s work is of critical importance in a business that includes a high volume of transactions. Each of these must be recorded and the receipts preserved as proof.

Accountants take over from the point bookkeepers sign off, even if there is an overlap in the actual work carried out. Their duty includes reviewing data and information provided by the bookkeeper. Furthermore, it is also part of the accountant’s job to conduct due diligence to ensure transaction records are in place and categorized in the manner required. Businesses follow different ways of bookkeeping; adherence to the format selected is also part of the accountant’s job role. In a startup, the accountant’s duties may be taken over by one of the founding members of the business or a hired resource, or simply outsourced to a professional agency. Startups and mid-sized businesses that are poised for growth may choose to outsource this critical function to leverage the expertise and professional insights that an experienced vendor can provide.

  • Controller

A Controller is responsible for the accuracy of accounting data, reliability of the reports and financial figures, and adherence to compliance matters for the business. Apart from this, the controller’s work also involves working on the business’s cash flow to make sure there is enough liquidity to meet business expenses, ensuring account balances are accurate, and that the year-end goals and obligations are met.

A controller may work closely with the accountant and bookkeeper, but ultimately it is the controller’s responsibility to ensure accurate reporting, cash flow management to facilitate business investments, and adherence to compliance.

  • Chief Financial Officer (CFO)

The CFO decides how the data compiled by the accounting team will be interpreted and utilized to benefit the business. Business decisions, including budgeting and financing business expenses, are also part of the CFO’s domain. However, much of the CFO’s work is dependent on the accounting team. For example, critical business decisions such as managing capital assets, acquiring them, helping with human resource hiring and management, advising the CEO, and providing the CEO with input on the financial operations of the business are key responsibility areas for the CFO.

Given the range and depth of experience and knowledge possessed by a CFO, a startup may choose to hire or outsource the service, or have a founding member multitask as a CFO. However, multitasking CFO duties with other critical business functions may prove to be detrimental to a business, particularly one poised for growth, as the need to focus on key decisions may detract from other areas.

Why You Need an Accounting Team

Any business that is earning more than $1 million in revenue may need the services of a professional bookkeeper to ensure the operation is running smoothly. Businesses may be regularly challenged by unreliable data and financial reports, both of which can cause a business to slow its growth pace.  Accounting team players are the essential pillars which support the business’s financial operations; but the budget restrictions of a small business may inhibit it from being able to afford an entire team of experienced accounting talent.

A Solution Exists

Outsourcing accounting services can effectively resolve these challenges while meeting business requirements. Outsourcing aids adherence to the business budget while ensuring the business benefits from professional expertise. Furthermore, outsourcing also eliminates the hassle associated with setting up infrastructure and hiring manpower. Ensuring effective outsourcing, however, requires research and diligence. Ideally, if you’re planning to outsource, research vendors who align with your business requirements. Check available online sources, view client testimonials, and most importantly visit the outsourcing services provider to learn more about how they work.

At Analytix Solutions, we offer customized and scalable solutions for small to mid-size companies ranging from accounting and bookkeeping to more complex requirements. For more information on how we can assist your business in managing accounting, call us at 781-503-9002 or email us at [email protected]

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