Who's on your team? 3 Pillars of Small Business Finance
As a business owner, building the right financial team is crucial for sustainable growth. But how do you know if a bookkeeper, tax firm, or outsourced CFO is the right fit for your needs?
In the small business world, I see a lot of confusion among the various roles of the finance team and what each one is there to accomplish. Not only is it confusing for the small business owner, but all of us service providers can get confused too! You’re not alone!
When I think of supporting small businesses with the basics of financial support I start with the 3 legs of the stool:
Bookkeeping
Tax
Finance
Typically the roles associated with these are:
Bookkeeper / Controller: Record the past, create clean financial statements, help make key decisions on how to organize the financial data
Tax: CPA or EA works on tax reduction strategies, tax compliance and tax filing
CFO: Builds the forward looking strategies and cash management, analyzes the financial data, supports key decision making
Now I will caveat this in the small business world - there’s SO MUCH overlap in many of these roles. I see people hire CFO’s and I’ve taken over for a few who were doing bookkeeping and a little forecasting - not the kind of CFO work we do. I’ve also seen people hire bookkeepers who can pull together amazing cash flow forecasts and really help shape the business.
My big point here is don’t get too tangled up in what your service providers call themselves. We’re all still figuring it out in the sub $20M revenue space (maybe even the Sub $100M?).
But DO get the support you need for:
Accurately recording the past and creating financial statements
Tax strategy and filing compliance
Forward looking guidance and cash flow management
Let’s also not forget the other finance & accounting roles that make this all this confusing for business owners:
Controllers - Sometimes Jr. CFO’s, or leader of the accounting team, they make sure the books are correct and help with basic 12 month forecasting, they make sure your financial statements from your profit & loss to your balance sheet are recorded correctly and strategically to align with your business goals.
Financial Analysts - use large data sets to understand things like: Gross Margin, Cash Flows, Etc…
Senior Accountants - More expired bookkeepers, jr. controllers
CPAs - Certified Public Accountants - a Certification only not a role, but HUGELY valuable depending on your needs. Not all CPAs do taxes, not all CPAs are CFOs, they can be any of these finance roles.
EA- Enrolled Agents - Tax filers without a CPA license - sometimes much better than a CPA, but not always.
Auditors - Examines financial data for accuracy and compliance, typically done for fundraising or prior to a sale for small to mid-size businesses.
Which Financial Role Do You Need?
Finding the right fit
Understanding these differences is the first step. Below, I’ve created a table with key questions and criteria to evaluate each role based on your business’s size, complexity, and goals.
Final Thoughts
Choosing the right financial support isn’t just about filling a role—it’s about aligning expertise with your business’s current and future needs. Start with this framework to ask the right questions and build a team that drives profitability and peace of mind. Need more tailored advice? Feel free to reach out or join our Finance Fight Club Membership for ongoing support and resources.
About the Author
Natalie Cook is the founder of Finance Fight Club, an Outsourced CFO & Financial Services firm dedicated to empowering small business owners with strategic financial guidance. With 5+ years of experience as a fractional CFO, Natalie specializes in due diligence, cash flow optimization, and preparing businesses for sale. Her insights have helped countless entrepreneurs confidently navigate complex financial decisions, from scaling operations to achieving successful exits. Connect with Natalie on LinkedIn for more expert advice on business finance, or explore Finance Fight Club’s resources at financefightclub.com to transform your financial future.
Q&A: Common Questions About Choosing Financial Professionals
Q1: Can I use one person for all three roles (bookkeeper, CPA, and CFO)?
A: While some professionals may offer overlapping services, it’s rare for one person to excel in all areas due to the distinct focus of each role. Bookkeeping requires meticulous detail, CPA & EAs work demands tax expertise, and CFOs focus on strategic planning. It’s best to build a team where each role complements the others. It’s rare, and usually poor quality, to find a single person who can do all 3. There are many firms that have all these areas under one roof , but having 3 separate firms or individuals can also work well depending on your business needs.
Q2: How do I know if my current financial team isn’t meeting my needs?
A: If you’re not getting clear answers to your questions, financial reports are consistently late, or you’re missing out on strategic opportunities (like cash flow optimization or growth planning), it’s a sign to reevaluate. Use the framework above to identify gaps— for instance, if your bookkeeper can’t explain variances in your reports, or your CPA isn’t proactive about tax savings, you may need additional support.
Q3: What if I can’t afford a full financial team right now?
A: Start with the essentials based on your business size. For smaller businesses, a reliable bookkeeper is often the first step. As revenue grows, add a CPA for compliance. Consider fractional CFO services (like those offered through Finance Fight Club) for strategic guidance without the cost of a full-time hire. Prioritize based on immediate pain points and budget constraints. Usually a CFO is a great addition around $1-2M in annual revenue or when scaling very quickly.
