Key Financial Roles for Your Travel Business

As a small business owner, it’s been established that you likely wear many hats and take on various roles throughout each day, month and the year.  Although there may not be a need for you to be an expert in all of them, it is important to understand the key financial roles and know what you can comfortably take on and when it may be better to seek outside help.

Before jumping directly to those roles, let's take the time to define what business finances are.

What are Business Finances?

Essentially, business finances consist of the strategies, tactics, actions, and processes related to tracking, managing, and growing the profit and money in a business. It is more than depositing funds and paying bills. It's more than simply "keeping a watchful eye" on your bank account.

There are 5 key financial roles that you may need at varying points in your entrepreneurial journey.  Let’s define them below.

Bookkeeper

A bookkeeper records the financial transactions of a business.  They track money not yet received, for example commissions, and they ensure that all bills are paid on time.  They also categorize financial transactions, ensuring they are accurate, complete, and kept up to date.  Although this is a tactical role, it is a very important one, nonetheless. It’s the foundation the next level is built on.

Accountant

An accountant essentially reports the summarized transactions entered by the bookkeeper.  They formulate financial statements and financial reports and assist in analyzing past performance and trends.  They also prepare and file tax returns – Federal, State, and Local.  If requested, they may also assist with budgeting and forecasting of future financial projections.  Many small businesses rely on accountants (CPA) to prepare taxes and navigate the confusing and every-changing tax regulation landscape. 

Chief Financial Officer (CFO)

A CFO is the person who sets the financial strategy and forward-looking projections for a business.  In larger corporations, the CFO is typically supported by various departments and staff on their team.  This allows them to maintain focus on the strategy and direction vs. day-to-day financial transactions.

Financial Advisor

A financial advisor takes on a more personal finance and wealth focus.  With elements such as personal investing, retirement planning, saving for college tuition, etc.  As a business owner, the profit (salary) from your travel business is what a financial advisor would help you invest and grow to meet your personal financial goals.

Business Owner

A business owner (that’s you) is responsible for the overall success of their business.  While they may seek advice from outside experts, the overall vision, strategy, operations, and financial success of the travel business, sit squarely on their shoulders.  Even though a business owner may enlist experts and advisors, at the end of the day, the decisions both strategic and tactical, are the responsibility of that business owner.

PRO TIP:  As the business owner, your goal is not accounting or to be the “accountant”.  Your goal is to be the travel business owner who makes good decisions, by the numbers that are available as a result of your monthly tracking and monitoring process. 

It is ok if you are performing these functions as you start and grow.  Over time, those tasks may be outsourced.  Regardless of who compiles your numbers routinely, the goal is always to take those numbers and use them to support confident business decisions, made by you.

Now that we've defined these roles, which are the current "hats" that you wear?

Do you feel comfortable and confident with those "hats", aka roles? Or at times feel a bit dazed and confused.

If that latter is true, it may be time to consider enlisting the help of an expert so that you can focus your efforts and attention elsewhere.

Have Q's or need extra support? Schedule a Roadmap Call here.