Bookkeeper vs. Full-Time CFO vs. Consulting CFO: What’s the Difference?

When small and mid-sized cannabis businesses start to experience serious growth, they often realize they need more financial guidance and support than is currently feasible. They need someone to track production costs, forecast cash flow, or help support efforts to secure financing, but they just can’t find the time.  

If this sounds like your business, who should you hire? A bookkeeper? A CFO? And do you need a full-time CFO, or will a consulting CFO be a better fit? The truth is, there’s no single “right” answer. The best fit depends on the size of your company, the complexity of your operations, and of course, your budget. 

At Evolve CPA Consulting, I offer consulting CFO services to cannabis operators, yet many people come to me unsure of what that means. Let’s compare bookkeepers, full-time CFOs, and consulting CFOs to find the best cannabis accounting services for your business. 

What Does A Bookkeeper Do? 

A bookkeeper records and organizes your business’s day-to-day transactions. They’re responsible for duties such as: 

• Recording and reconciling bank statements, AP/AR, and ledgers 

• Processing payroll 

• Preparing basic income statements

• Recording and categorizing cash transactions

A bookkeeper’s work is essential and the foundation of any well-run business, but their work isn’t typically strategic. They provide the data that others use to make decisions. A bookkeeper reacts to financial events, but isn’t the one putting them in motion. 

What Does A CFO Do? 

I like to say that bookkeepers and accountants look back, while a CFO looks ahead. A CFO brings strategic authority to long-term financial goals. They make key decisions alongside CEOs and answer the tough questions like, “Where can we cut costs?” “Can we afford to hire?” or “What is our one- to three-year plan?” A CFO’s duties include: 

• Forecasting rolling cash flow and roadmaps

• Analyzing SKU-level costs to help maximize product mix decisions

• Providing oversight of the business’s accounting function and technical accounting treatment 

• Preparing for audits or sales 

• Reporting KPIs and peer benchmarks 

• Reporting monthly and quarterly financial statements 

• Analyzing budgets vs. actual spend 

• Supporting financing raises

• Collaborating with bookkeepers, tax CPAs, payroll providers, and attorneys 

• Collaborating with the rest of your leadership and management team, including sales, marketing, ops, HR, IT, etc. 

The CFO isn’t simply measuring costs and income; they decide what to do with that data. If your business needs long-term direction over complex financial matters, such as expanding into new markets or determining what locations or products to invest in, you’d likely benefit from bringing on a CFO. But in what capacity? 

Full-Time vs. Consulting CFO 

Full-time and consulting CFOs offer essentially the same skills and services. The difference isn’t really the work itself, but how it’s structured. 

A full-time CFO is embedded in your company’s C-suite day-to-day. A consulting CFO is an ongoing partner who owns your financial strategy, measured by impact rather than hours in the office. A full-time CFO often manages a finance team below them and holds fiduciary responsibility. But hiring a full-time CFO can be expensive, with high negotiated salaries, equity, and benefits, especially for small businesses with less than $30 million in annual revenue. 

By contrast, a consulting CFO, also frequently called a “fractional” CFO, provides the same financial ownership without the overhead of a full-time hire. I prefer the term “consulting CFO” because I do all of the CFO work my clients need, not a fraction of it. It’s a continuous engagement, not a one-off project. With the right accounting support in place, a few focused touchpoints and meetings a month can accomplish what a business needs from its CFO: cash flow projections, plans for future cash needs, and strategies to strengthen inflows and manage outflows.

A consulting CFO makes sense for operators with limited executive salary budgets. If you know you can’t do it yourself, but also can’t hire full-time, that’s what I’m here for. I’m not a contracted bookkeeper or tax accountant; I provide real, detailed roadmaps to financial clarity and collaborate with your bookkeeping and tax teams to ensure the strategy is realized. I analyze your current financial struggles and provide real solutions your team can implement. 

Which Is Right for Your Business? 

Should you hire a bookkeeper, a full-time CFO, or a consulting CFO? To decide, start with an honest look at how often your business needs senior financial input. As you keep growing and feel the strain, it may be time to bring on a CFO. 

Think of it like a progression of your needs: 

• Bookkeeper: Records bank transactions and leaves the CEO or owner to make all financial decisions. 

• Consulting CFO: Comprehensive, strategic financial guidance without daily oversight and at a fraction of the cost. 

• Full-time CFO: Daily, embedded senior oversight while managing others at executive-level compensation. 

Evolve Your Cannabis Business with Newfound Financial Clarity 

If you’re ready to start asking (and answering) the important questions to scale your cannabis business sustainably, it’s time to bring in a CFO who understands your industry as well as you do. 

As a consulting CFO, I help cannabis operators of all sizes, from startups to multi-state operators, ranging from $1-15M in revenue. I understand the complexities of this highly regulated industry, from its tax challenges to its cost structures, and I bring that knowledge to every relationship.

Let’s talk about your business, your goals, and anything you may be struggling with. Contact me, Tracy LeMaire, CPA, MBA, for a consultation at 508.826.2574 or submit an online form. I look forward to talking with you!