If you are a business owner, then the concept of accounting can be pretty daunting. There are many different terms that you need to understand to work with an accountant or BAS Agent effectively. If you haven’t heard of a Virtual CFO in Australia, this article is for you!
Essential Facts About Virtual CFOs
Virtual CFOs have a vital role within businesses as they can:
- Help to lower costs
- Increase profits
- Serve as an asset.
Virtual CFOs vs Accountants
The main difference between an accountant and a Virtual CFO is that the accountancy firm will prepare tax returns, financial statements, and audits. A BAS Agent will look after your day-to-day bookkeeping and payroll, as well as lodge your BAS’s. On the other hand, a Virtual CFO offers additional support, such as helping to establish budgets or identifying opportunities for business improvement.
How To Find a VCFO
The government does not regulate VCFOs, but there is a professional body that assists in finding one. For example, to find a VCFO in Australia, you can locate their website on Google, and they will be able to point you in the right direction of finding an accountant or VCFO who specialises in your business sector. Or you can contact Total Eclipse Agency right here in Australia, we employ the top financial experts in the country to help small and medium businesses in Australia to flourish and grow.
Why Hire a VCFO?
- VCFOs can offer a wide range of assistance, and they do not charge the same fees as an accountant.
- You will save time and money while still maintaining your financial control.
- Free up your valuable time to focus on building your business.
- Only use a virtual CFO for tasks you designate.
VCFOs provide additional support for businesses by helping with both operations and administration to free up time so that entrepreneurs can focus on growing their company rather than doing everything themselves.
Public accountants work to assist their clients with tax planning and other financial decisions. They do not work for a specific company but rather serve as an outside consultant who can help individuals or small businesses irrespective of their sector.
A tax accountant works closely with companies that directly impact taxation laws, such as personal income or corporate taxes. That is why it’s essential to select the correct type of accounting firm when dealing with these matters.
Tax accountants also help people file returns and resolve disputes related to government agencies, so this field requires extensive knowledge of financial rules and regulations at local and international levels.
An operations manager provides support by helping businesses run more efficiently, which means that they can make the necessary changes to sustain growth. Their role is not limited to financial planning; instead, it’s about attracting talent and implementing customer service or marketing strategies.
A consultant works closely with businesses – temporarily – by providing advice around various types of fixes such as sales analysis, cash flow improvement or operational structure. The goal of this type of accountant is for companies who want assistance without making an official partnership deal that involves sharing company information.
You can find consultants through executive search firms specialising in placing accountants within different sectors, so you will need to research before engaging in one’s services. For example, to find an accountant in Australia, you can look up Google and pick the best for you.
Qualifications of Being an Accountant?
Becoming an accountant requires many years of training and education, but the rewards are worth it. The several types of accountants provide their clients with professional services for a fee.
Pros and Cons to Hiring an Accountant?
Accounting firms can be very beneficial because they offer specialised knowledge in taxation or bookkeeping that most business owners don’t have time for due to other workloads. But, on the other hand, if you hire someone without doing your research, you could end up losing money. After all, there is no guarantee that this person will help grow your company, so it’s essential to find one’s who have specific skills related to your industry.
Accountant vs Bookkeeper?
Bookkeepers typically specialise in providing assistance related to accounts payable (A/P) and accounts receivable (A/R). They also track the money coming into a corporation and what is going out, which makes them essential if someone wants to keep an eye on cash flow within one’s business. On the other hand, Accountants can provide more in-depth analysis related to taxes or general business practices.
Who is better? Accountant vs Bookkeeper?
Neither one of these professionals should be entirely replaced by the other; instead, they work together to create financial statements that you can use for budgeting and forecasting purposes.
For instance, an accountant will make sure you’re filing your tax returns correctly while a bookkeeper provides support calculating payroll taxes and then making any necessary payments before deadlines arrive.
The focus here is about balancing resources within businesses, so both parties need to communicate to reach common goals over time.
How To Make a Decision Between a Virtual CFO and an Accountant?
When selecting the correct type of accounting firm, like the Total Eclipse Agency in Australia, you should consider what services they offer and whether they can help your company. For example, VCFOs typically work with businesses that require more advanced analysis, such as cash flow reports related to operations management, so this is a good option if your business needs guidance on expanding overseas.
However, Accountants specialise in providing more practical support, such as preparing tax returns.
In conclusion, accountants and VCFOs are professionals who provide specialised knowledge to their clients, but their types of service can vary. Therefore, it’s essential to explore all your options before deciding because you might find that one person is better suited for your business needs than another.
At the Total Eclipse Agency, we help businesses across Australia and even in countries outside of Australia. We have professionals who can help you in the following ways:
- Bookkeeping services
- Business Activity Statements
- Trust accounting
- Virtual Chief Financial Officer
- PAYG lodgements
- Payroll and Superannuation
You can’t go wrong in partnering with Total Eclipse. Call us today and we can discuss your needs and how we can help!
Kylea Martin is a Financial Strategist who boasts numbers among her many superpowers.
She can decode your business data and transform it into information you can readily understand.
A Certified Practising Accountant, Kylea leads the Financial Services team, bringing over 25 years of corporate experience to small and medium business owners.