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The roles of a bookkeeper, controller and a Certified Public Accountant (CPA) are distinct but compliment each other, and many businesses benefit from having a combination of one, two or all three. Here’s an overview to help understand what each role is responsibe for and when your business may benefit from each:
Bookkeeper
Role: Handles the daily financial tasks and keeps accurate financial records.
Responsibilities:
Recording all financial transactions (income, expenses, etc.).
Managing accounts payable (bills) and receivable (invoices).
Reconciling bank and credit card statements.
Processing payroll (in some cases).
Generating basic financial reports like a profit and loss statement.
When You Need a Bookkeeper:
If you’re overwhelmed by day-to-day financial tracking.
To keep accurate records for taxes or audits.
If you’re using manual systems and need help transitioning to accounting software.
Controller
Role: Acts as a financial manager, overseeing (and sometimes doing) the work of the bookkeeper and ensuring that financial data is accurate and actionable.
Responsibilities:
Supervising and reviewing the bookkeeper's work to ensure compliance and accuracy.
Producing and interpreting financial reports for management (e.g., budgets, forecasts, variance analysis).
Developing internal controls and processes to safeguard assets.
Managing cash flow and overseeing financial planning.
Acting as a liaison between the bookkeeper and external CPAs or auditors.
When You Need a Controller:
If your business is growing and needs more detailed financial oversight and reporting.
When you want deeper insight into financial performance to inform decision-making.
To ensure your bookkeeping processes and internal controls are efficient and reliable.
If your company handles complex finances (e.g., inventory management, multi-entity operations).
Certified Public Accountant (CPA)
Role: Provides high-level financial expertise in tax law, compliance, and strategic planning.
Responsibilities:
Preparing and filing taxes (individual and corporate).
Advising on tax strategy, compliance, and minimizing liabilities.
Conducting audits or assurance services.
Offering business and financial planning for growth or restructuring.
Helping with mergers, acquisitions, and investor reporting.
When You Need a CPA:
For tax preparation and planning, especially if your finances are complex.
If your business needs audited financial statements or external assurance.
When seeking advice on long-term financial strategies or succession planning.
To navigate significant financial events (e.g., selling the business, major investments).
Key Differences
Role | Bookkeeper | Controller | CPA |
Focus | Daily financial recordkeeping. | Financial oversight and reporting. | Tax, compliance, and strategic planning. |
Scope | Data entry and organization. | Accuracy, analysis, and process design. | High-level advice and specialized tasks. |
Certification | No certification required. | Often has accounting certifications. | Must pass CPA exams and maintain a license. |
Strategic Role | Minimal. | Moderate (focus on actionable insights). | High (focus on long-term goals). |
Involvement | Routine, transactional work. | Management-level oversight. | Periodic, for specialized needs. |
When to Use All Three
Bookkeeper: Keeps your financial records clean and organized daily.
Controller: Oversees the bookkeeping process and provides actionable financial insights for decision-making.
CPA: Prepares taxes, ensures compliance, and offers strategic advice for the future.
Together, this trio ensures your business finances are managed at every level—from day-to-day tasks to long-term strategy. As your business grows, having all three roles in place can optimize your financial operations and decision-making.
If you are a smaller (or newer) business focus on where you can benefit from having someone else handle these tasks so that you can focus on growing your business.
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