While similar in many respects, accounting and finance handle financial information in distinct ways. One is more forward-looking, while the other focuses on the present. If you’re interested in hiring for either of these roles, it may be beneficial to understand their similarities and differences. 

At Fully Accountable, unique accounting needs are our specialty. With digital accountants, controllers, and strategic CFOs at the ready, we’re equipped to develop custom accounting solutions that fit your specific needs. 

What is Finance? 

Finance is a broad term that primarily refers to wealth management and investments. The finance department plays a significant role in every company, as finance generates money-making ideas and manages assets. While banks and hedge funds hire many finance professionals, companies and private individuals hire in-house finance departments as well. 

Finance Professional’s Responsibilities

What a finance professional does daily depends on the job. A financial advisor, for example, works with private individuals and are responsible for the client’s financial management. In addition to building a client’s wealth through astute financial planning, financial advisors are the first line of defense when issues, such as debt and retirement planning, arise. An investment manager, on the other hand, offers advice on which stocks or other financial instruments to invest in. 

On the corporate side, finance professionals may have job titles like financial analyst, finance manager, or investor relations analyst. These roles vary in responsibilities, but they all have one thing in common: big-picture thinking. Financial analysts plan for the future by looking through the company’s current finances and producing in-depth reports that can drive change. 

What is Accounting? 

Accounting deals with the recording and reporting of all finances, documenting it in real-time to offer companies or individuals an accurate depiction of their finances. The accounting department produces financial statements such as balance sheets and cash flow statements. 

The accounting department also ensures that all financial matters are being done according to the law, including the tax code and local and federal guidelines. 

Accountant’s Responsibilities

A corporate accountant takes a more granular look at the finances, keeping track of and reporting all financial transactions to maintain an accurate record. The reports generated by accountants, such as balance sheets, give stakeholders a detailed look at where the company stands financially. This allows the CFO, or other higher-ups in the financial department, to make more informed decisions. 

In addition to working in-house for small or large companies, accountants can also work for accounting firms that offer many of the services discussed above. Accountants at these firms may also operate as auditors, whose external view of a company’s finances may uncover errors or malfeasance. 

Finally, accountants may work with individuals to help prepare and file taxes. Though the role of an accountant is much maligned as a “boring” job, there are a surprising number of opportunities for accountants, especially those who have taken it a step further by acquiring their Certified Public Accountant (CPA) license. 

How are Finance and Accounting Different

Finance and accounting are involved in managing a company’s finances, though they each have a unique approach. Both accountants and financial analysts produce reports but whereas accountants record the present, financial analysts plan for the future. Each role is essential to the company’s financial success. For example, if you have concerns about how to generate more revenue for your company, consider hiring a financial analyst.

An analyst will objectively examine your finances, finding weak points and opportunities to create more revenue. Furthermore, financial analysts are keen students of the current economic climate, able to pinpoint new trends and lucrative investments that could propel your company to the next level. Financial analysts measure success based on how much revenue the company generates, whether through new initiatives or by tweaking older ideas. This involves leveraging financial reports into strategy.   

Accountants do not need to generate revenue for the company, but their reports are invaluable since they inform the higher-ups, resulting in less risky investments. As your company grows and generates more revenue, keeping track of it will require an accountant. More importantly, accountants can ensure that all financial transactions and reports are being done above board.

At Fully Accountable, we can meet your unique financial needs. Whether you need a fractional or strategic CFO, a controller, or a bookkeeper, you can rest assured that our accountants will deliver results. From meeting compliance to creating future forecast reports, we can help you accomplish your ideal accounting infrastructure. To learn more about Fully Accountable and how our outsourced accounting services can transform your company, contact us today.

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The days of finance departments succeeding with simple bookkeeping and compliance tasks are gone. In this market, you need professionals who understand how to implement software solutions, automate formerly manual processes, and analyze complex financial data. Moreover, you need professionals who can accurately communicate data and form long-term strategies with your C-suite executives, board members, or potential investors. 

In this blog, we’re discussing why FaaS companies are perfect for startups. These teams are  not only useful because they implement software and data analytics skills. One of the defining features of FaaS teams is the ability they give you to plug and play solutions as you grow as a business. 

At Fully Accountable, we understand how rapidly your business needs to evolve at every stage of growth. That’s why our fractionalized professionals implement the most advanced accounting software and tools for your organization. When you use our services, you benefit from clear communication, state of the art technology, and scalable solutions that lead to sustainable success. 

What Is Finance-as-a-Service and How Can a Startup Benefit from This Service?

Finance-as-a-Service (FaaS) is a term used to describe companies that offer outsourced accounting services beyond traditional bookkeeping and compliance services. FaaS companies work with you to integrate financial strategies replete with software solutions and procedures that consolidate your entire organization. 

Startups can benefit from these companies because they offer a full range of financial services with one provider. Having all of your core financial functions consolidated into one system can result in significant savings. Not only do you save yourself the stress of hiring in-house employees. You not only have a full-service, scalable accounting team who simplifies bookkeeping and tax compliance. With FaaS, you also have the option to include services, such as strategic CFOs, who handle the more complex financial planning and reporting tasks. 

FaaS Handles More Than Traditional Accounting

FaaS firms don’t limit themselves to traditional accounting techniques. Yes, they ensure your books are in order and you are tax compliant. But with the dawn of eCommerce, financial business intelligence (BI), and advanced analytics and software, the accounting teams of today require different skills altogether. FaaS teams aren’t focused on manual data entry and record-keeping. The accounting teams of today must have more advanced skills. 

The accounting teams of today understand how to leverage technologies that perform bookkeeping and compliance tasks automatically while improving scalability and increasing agility, productivity, and profitability. They analyze cash flow and understand how to secure capital in areas not typically identified. They provide real-time reporting and advisory that pertains to the following areas of your business: 

• Payroll 
• Billing and invoicing 
• Cost management

One of the most important pieces of this evolution is that startups have access to resources that only larger, more established enterprises would have had prior. Today, because of the scalability FaaS teams offer, you can realize the benefits of this approach to outsourced accounting–no matter your business size.

How Can Startups Benefit from FaaS?

Finance-as-a-Service has modernized the role accountants play in organizations. Since the genesis of accounting software, such as Intuit, companies no longer have to use human resources for what a machine can complete. Machines perform these tasks more efficiently and for less than humans. Cloud computing furthered the extent that accounting software can perform these tasks. Now, they can even perform forecasts, handle invoicing and billing, control payroll, and manage expenses. 

You might ask yourself, then, why you even need a FaaS team. If you can automate the majority of your accounting functions, why do you need a team of humans? The answer is, simply enough, that humans can do things that machines can’t. Contrary to what Elon Musk has led you to believe, we still serve a purpose (for now). The benefit of an FaaS team is they decide what functions to automate, how to optimize procedures, and connect your organization under one financial system. In essence, the software collects the data but humans still have to decide what to do with that data.  

Your FaaS team can help decide the following:

• How to improve cash flow, financial forecasting, planning, and management
• Easy access to financial systems from anywhere in the world. 
• Cut expenses using data.
• Recommend scalable operations that maximize your investment. 

FaaS Teams Respond to Your Company’s Needs

There are many reasons why only one out of every three businesses fail within the first decade. Most of them relate back to a company’s profitability. Without financial insights such as business intelligence (BI) and benchmark KPIs, your leaders can’t make informed decisions. Moreover, your leaders might not be finance-minded. If that’s the case, you need finance experts who can relate the data in clearly understandable terms. As you scale, the need for these types of experts will only grow. FaaS teams give you a simple solution to those growing needs. 

Startups also need guidance on what to outsource, which can be challenging. An FaaS team will be able to determine with precision which tasks your startup should outsource. They will also be able to determine the cost savings you should expect from outsourcing. When your business grows, this doesn’t stop. Because FaaS teams are scalable, you’ll see long-term benefits from these services. 

What Accounting Software Does Your Startup Need?

There are a plethora of options to choose from when it comes to the type of software you implement into your infrastructure. Startups also have much different software needs than established businesses. Financial technology choices hinge on the efficiency, cost efficacy, and scalability of the software. That’s why having a fractional accounting team by your side can help you to determine which software best fits your needs. Since startups can grow at a rapid-rate, FaaS teams can also serve as a valuable resource when it comes time to modify the software suite. QuickBooks is a great place to start because it’s a highly scalable software that integrates with most other financial systems and it produces highly-reliable reports. 

Why Do FaaS Companies Make Sense For Companies of All Sizes?

FaaS aims to achieve more with less with any type or size of business. Because FaaS uses scalable solutions, you can benefit from them at any stage of development. As an established enterprise, you can benefit just as much from FaaS services as a startup. Regardless of your size and needs, you need adaptable solutions for your finance department. FaaS companies give you those solutions and simplify transformation. With benchmarking, software, and changing services, FaaS teams fit any size organization needs. 

Bottom Line

Because of the challenges that arise from transforming your organization’s finance department, you might be tentative to implement FaaS solutions in your infrastructure. With the right outsourced accounting company at the helm, this fear is unfounded. 

Reputable FaaS companies, such as Fully Accountable ensure your organization doesn’t skip a beat when implementing accounting software, benchmarking KPIs, and fractionalized finance professionals. With the right team at your disposal, you can scale without worrying whether your strategies are tenable in the long-term. 

Contact us today to learn more about how Fully Accountable’s team of fractionalized finance experts can transform your organization into the streamlined machine you’ve always envisioned. 

The post Should Your Startup Use an FaaS Company? appeared first on Fully Accountable.

Finance-as-a-Service, on the other hand, provides access to a team that responds to the core functions and strategic initiatives of your business. Using these professionals, you can communicate directives across your organization and ensure your entire company stays on the same page regarding specific procedures and operations. 

Continue reading to learn more about the benefits of Finance-as-a-Service. 

What Is Finance-as-a-Service?

Finance-as-a-Service focuses on working capital, integrated acquisitions, and long-term business strategy aimed at sustainable success. It transforms the traditional “back office” and integrates new technologies. It can also roll legal, statutory, and tax reporting into one department, making your business more efficient. It takes a broader approach to the finance department and governs wider decision-making with financial business intelligence, data analytics, and KPI benchmarks. 

Finance-as-a-Service enrolls the C-suite executives in the decision-making process. It helps them tear down operational walls while fostering relationships with sales, supply chain, IT, HR, and other departments. It is the most effective way to collaborate initiatives across an entire organization.

How Can Finance as a Service Companies Help?

FaaS teams combine financial strategy and accounting in one department. They promote continuity within the organization and give you access to a full-service accounting team without the hassle of hiring and retaining an in-house team. In part, finance-as-a-service teams are different from outsourced accounting teams because they look at your internal operations, offer scalable solutions, and can integrate with any existing software while recommending new solutions. These factors are what give FaaS teams more agility. They are fractionalized and can respond to the needs of your business regardless of your industry. They can also clearly communicate insights and directives with your entire team, including C-suite executives.

What Are the Benefits of Finance-as-a-Service?

The core FaaS benefits for business include: 

• Cost benefits
• Scalable solutions
• Specialized directives from a strategic CFO 
• Increased synergy among departments
• Optimized business procedures 
• Prioritized growth

Cost Benefits 

Cost is one of the more significant business benefits of FaaS. Choosing a FaaS solution instead of a full-service, in-house accounting team can save you costs. The cost savings don’t only occur upfront. Rather, they last over the long haul. These cost savings last because, over time, you can increase the number of procedures you automate, respond to challenges faster with a more agile approach, and provide data analysis that leads to more confident decision-making and reduced risks. Lastly, a FaaS team will be able to streamline your financial reporting. 

A company with an in-house team but without a CFO will produce reports designed for compliance. A company with access to a CFO has data in its hands that leads to more forward-thinking insights. FaaS providers give companies access to numerous analytics and metrics that help them leverage enterprise-level finance and accounting software for better reporting in easily understood terms. 

Scalability 

Finance-as-a-service providers give you the benefit of agility and freedom so that your business can use their services as needed. They provide the tools to set up systems without the overhead or commitment of an in-house team. These fractionalized professionals will already have experience in your industry, and your company will be able to scale easily and effectively.  

CFO Support

If your company lacks a CFO, you can use one provided by your FaaS company. Strategic CFOs, such as those at Fully Accountable, can give your company financial guidance, leading to long-term success and a strategy that fits your evolving needs. Having an outsourced CFO will give you financial leadership and allow you to focus on your core business principles. They will be able to guide you in creating a strategy that fits your goals.

Increased Synergy Among Departments

FaaS companies streamline financial data management, replacing outdated paper and spreadsheet methods that are error-prone and time-consuming. They provide unified financial reporting and analysis, ensuring company-wide alignment on financial strategies. Benefits include improved understanding of profitability, clearer communication with investors, easier fraud detection, more accurate business forecasts, and reduced risk in decision-making. By connecting and managing financial data effectively, FaaS companies foster departmental synergy and help form clear business objectives, which is essential for long-term financial planning.

Optimized Business Procedures 

Business procedures are at the heart of your financial directives and strategy. If the various departments don’t have clearly defined procedures that help them understand the company’s overall financial strategy, you won’t be able to realize all of the benefits of a FaaS company. FaaS teams implement the correct procedures for each department to minimize costs and ensure every team member is on the same page regarding financial objectives.   

What Should You Look for In a FaaS Company?

There are three primary areas a Finance-as-a-Service company should focus on. What resources your team needs, the team you choose, and communication will dictate whether the transformation from Finance-as-a-Function to Finance-as-a-Service is successful. 

Resources 

Your Finance-as-a-Service provider should define their service scope and offer scalable solutions with transparent pricing. Their standard package should include technology, necessary deliverables from your team, and a monthly meeting agenda covering long-term planning, monthly reporting, and cash flow planning.

The Team

Choose a Finance-as-a-Service team based on your specific needs, considering whether you require a full finance and analytics team or just a controller. Transitioning to a FaaS model may require different skills and resource allocation.

Communication

Ensure regular and consistent communication with your finance team, including meeting schedules and deadlines. Clarify how and when results are delivered, and confirm that your communication needs are met, as this is a standard commitment for most CPA firms and staff.

Bottom Line 

The benefits of outsourced accounting have long been recognized by companies trying to automate some of their bookkeeping and compliance processes. However, Finance-as-a-Service takes these benefits one step further. They do this by automating the correct analytics, implementing software, providing a scalable solution, and clearly communicating objectives across your organization. 

As an outsourced financial services and accounting company, we at Fully Accountable believe businesses of all sizes can benefit from our FaaS offerings. Whether you’re a small company struggling to scale or an established company that stands on the precipice of a high-stakes game of growth and needs clearly defined financial strategies, we have a fractionalized team that can help.

If you’re ready to hire a company for FaaS services, contact us today to learn more about how you can benefit from the FaaS team at Fully Accountable. Sustainable growth is only a phone call away.

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