A chief accounting officer oversees all accounting functions. The chief accountants handle complete account departments and employees. They know the latest accounting laws and procedures.
Chief Accountant vs. CFO
What is the Level of a Chief Accountant?
A chief accounting officer oversees financial operations and transactions documentation, ensuring finances are sound and taxes are paid correctly. Many chief accountants have Certified Public Accountant (CPA) certification and typically have several years of accounting experience.
Essential Qualifications and Skills for a Chief Accountant
- Bachelor’s degree in accounting
- Certified Public Accountant (CPA) certification (often)
- Several years of accounting experience
Required Skills:
- Analytical skills
- Proactive communication
Responsibilities:
- Preparing and presenting financial statements
- Overseeing accounting department
- Ensuring financial regulation compliance
Essential Skills:
- Understanding of accounting practices and procedures
- Communication with stakeholders
- Mathematical skills, especially algebra
- Organizational and time management skills
Additional industry knowledge or a master’s degree is sometimes needed. Proficiency with accounting software and strong communication and presentation abilities are necessary.
Chief Accountant Duties:
- Assist in developing/implementing accounting policies, priorities, and procedures
- Oversee financial transactions
- Monitor the company’s financial health
- Review and revise report discrepancies
- Check the company’s equity
Comparing Roles: CAO and CFO
Is a Chief Accountant the same as a CFO? The answer is no. While the CFO relies on accounting to control finances, a Chief Accountant operates the system that produces reports. The Chief Accountant interacts with government agencies, whereas the CFO typically interacts with various business entities.
The decision to hire a CAO or a CFO should be based on the size and complexity of the organization’s operations. The CFO is responsible for strategy, risk, analysis, and guidance, while the CAO ensures that records are accurate and compliant with regulations. Each role has different primary duties, and they collaborate to report on activities and assess their impact.
A controller oversees the firm’s accounting operations, including overseeing staff and reporting to the board. They often receive higher pay than accountants due to their expanded duties and responsibilities.
Career Advancement in Finance
What is Higher Than a Chief Accountant?
In many organizations, a CFO may be considered a higher position than a Chief Accountant. The CFO has authority at the C-suite level and may require a broader range of experience. Employers typically prefer candidates for the CFO role to have 8-10 years of finance or accounting experience.
For more information on the differences between the roles of a CAO and a CFO, businesses can contact CFO Strategies LLC for insights and tips.