The financial aspect of a company gets managed through accounting and bookkeeping services. It forms an integral part of a business's operations. The accounting and bookkeeping department gathers financial data from invoices, receipts, and other documents and records in accounting books following the applicable principles. These books get summarized into financial statements, which businesses analyze and interpret for informed decision-making. Thus, accountants and bookkeepers are critical in preparing and managing records necessary for companies to assess economic performance, position, and growth. However, they cannot provide quality strategies for companies and guide them in future action courses. 

Expert assistance and professionalism are necessary for guiding the business towards growth. CFO services come into existence when companies require advanced financial management. A bookkeeper cannot be a CFO unless they qualify and gain relevant experience. However, a CFO can undertake bookkeeping, although it would be an underutilization of their capabilities. Thus, businesses must be diligent in choosing a CFO and not go for low-cost alternatives without checking the individual's educational and professional background. Both CFO and bookkeeping services are critical for a business at different phases. Let us look at the points highlighting their differences:

Responsibilities-

The bookkeeping services providers are responsible for offering the following services:

1. Maintaining accuracy in financial records
2. Undertaking accounting transactions
3. Generating financial reports
4. Overseeing internal controls
5. Performing cash and accounts reconciliation
6. Carrying out routine financial and administrative functions

Bookkeepers usually handle daily tactical accounting issues. Their primary function is identifying and recording books and looking back at the already generated data. 

On the other hand, companies need solid, strategic leadership to guide the business in the right direction. The CFOs are responsible for the following services:

1. Long-term and short-term financial planning
2. Financial need projection for strategic decision-making
3. Understanding the story behind numbers
4. Interpreting financial data and trends for management use
5. Maintaining relations with lending or financial institutes, creditors, and parties, developing a good capital structure, and managing institutional assets
6. Enhancing operational efficiency and effectiveness
7. Handling financial risks

The CFO's role is broader in current and future financial planning. 

Forward vs. backward-looking

The bookkeepers' role is to gather information and transactions happening daily and record them in the accounting books. Finally, they use the past data and convert it into financial statements for stakeholders. Thus, bookkeeping services are backward-looking. 

On the other hand, a CFO uses past data but focuses on the future. They provide guidance and direction in which a business must move for growth. Their duties involve planning long and short-term strategies, strengthing firms' market position, pouncing on opportunities, and overcoming weaknesses and threats. 

First step vs. last

The bookkeeping services constitute the first step toward financial management. It begins the financial journey by identifying and recording financial transactions in the books. Without bookkeeping or messy services, companies won't be able to devise strategies and strengthen their financial position. Thus, the foundation must be robust, accurate, reliable, and efficient.

CFO services usually are a part of the last stages of financial management. They analyze the information offered by the accounting and bookkeeping department and undertake a holistic approach to strategizing. The services help businesses attain profitability and assist in managerial accounting.