Three roles. Three price tags. Three stages.
Most owners mix them up.
They hire a bookkeeper. Then ask for strategy.
Or hire a CFO. Then ask them to file receipts.
Both are wrong.
Each role does something different. At a different stage. For a different price.
Get it right and your finance function works.
Get it wrong and you waste money – or miss the warning signs that matter.
Here is the simple version.
The Bookkeeper
What they do.
- Records every transaction
- Categorizes income and expense
- Reconciles bank and credit cards
- Pays bills, if you let them
- Sends invoices, if you let them
- Files receipts
- Closes the month
That is the job.
What they do not do.
They do not tell you if your prices are too low.
They do not build a budget.
They do not forecast cash.
They do not read the numbers for meaning.
They do not talk to investors.
They do not fix your margins.
Cost.
- $25–$50 per hour part-time
- $300–$900 per month for a basic package
You need one when.
- You have any revenue at all
- You are doing books at midnight
- Your shoebox of receipts is now two shoeboxes
The Controller
What they do.
- Owns the monthly close. On time. Every month.
- Reviews the bookkeeper’s work
- Produces clean financial statements
- Forecasts cash 13 weeks out
- Watches gross margin like a hawk
- Spots variances and flags them
- Sets up internal controls so nothing leaks
- Builds your KPI dashboard
- Coordinates with your tax preparer
What they do not do.
They do not pitch investors.
They do not run M&A.
They do not sit on your board.
They do not design five-year strategy.
Cost.
- $80,000–$140,000 per year full-time
- $1,500–$3,500 per month fractional
You need one when.
- You have a bookkeeper, but nobody reads the reports
- You do not know your gross margin by product or service
- You wonder every month where the cash went
- You are between $500K and $5M in revenue
The CFO
What they do.
- Sets financial strategy
- Builds the model that runs the business
- Raises capital. Talks to banks and investors.
- Designs the metrics the company runs on
- Plans the next three to five years
- Stress-tests every big decision
- Sits next to the CEO and pushes back when needed
- Prepares the company to sell or scale
What they do not do.
They do not reconcile your bank account.
They do not chase invoices.
They do not post journal entries.
If your “CFO” is doing those things, you do not have a CFO. You have an expensive bookkeeper.
Cost.
- $200,000–$400,000 per year full-time
- $3,000–$8,000 per month fractional
You need one when.
- You are raising capital
- You are above $5M and big decisions need a model behind them
- You are preparing for an exit
- You need someone with numbers to challenge the CEO
What You Actually Need at Each Stage
Pre-launch.
You do not have a business yet. You do not need any of these roles.
You need the setup. Entity. Chart of accounts. Software. A starting budget.
$0-$500K revenue.
Bookkeeper, monthly. That is it.
Your job is to grow. Their job is to keep the books clean.
$500K-$2M revenue.
Bookkeeper plus light controller work.
You need someone to read the numbers, not just record them.
A fractional controller a few hours a month is enough.
$2M-$5M revenue.
Bookkeeper plus full controller.
The money flows are big enough to leak. Controls matter.
Cash forecasts matter. Margin by product matters.
$5M-$15M revenue.
Bookkeeper plus controller plus fractional CFO.
Decisions are bigger. So is the cost of getting them wrong.
You need someone to model the next five years, not just close the last month.
$15M+ revenue.
Full-time controller. Full-time or near full-time CFO.
A team, not one person.
The Mistakes I See Most
1. Asking the bookkeeper for strategy.
Different skill. Different brain. Not their job.
2. Hiring a full-time CFO at $1M revenue.
Burns cash. Bores the CFO. Everyone loses.
Hire a fractional one if you really need the strategic brain.
3. Thinking your tax accountant covers it.
Your tax accountant files returns once a year.
That is compliance, not finance.
4. Doing it all yourself.
The most expensive person at your company is you.
Every hour you spend in QuickBooks is an hour not winning customers.
The Cheap Version of the Right Answer
For most small businesses, the smart move is this.
Bookkeeper for the books. Fractional controller for the reports. Fractional CFO for the strategy.
You do not pay a full salary for any of them. You buy the slice you need.
That is what Frac CFO is built for.
One team. One monthly fee. All three layers of finance, sized to your stage.
Where Are You Right Now?
Not sure which role you need?
We built a 2-minute diagnostic. Eight questions. One recommendation.
Or book a free 30-minute call and we will tell you straight.
Keep Reading
- Outgrown Your Bookkeeper? Five Signs It’s Time for a Real Finance Function →
- The 4 Numbers Every Small Business Owner Should Know Weekly →
- What Stage Is Your Business In? Take the Diagnostic →
Frac CFO is a virtual finance department for small businesses. Bookkeeping, controller work, and CFO advisory – one team, one monthly fee, sized to your stage.