Don’t Expect Your CPA To Be Your CFO
I frequently see struggling businesses feel comfortable engaging a CPA to perform an audit, or use a bookkeeper to handle the financial processes of their company and provide monthly finance reports. As we delve deeper into the client’s concerns through probing questions, I often discover that neither the CEO nor the Board fully understands the monthly financial reports that were dutifully distributed to their emails.
Don’t mistake your CPA, who is preparing your tax return or an audit, as the financial strategist for your business. The CPA’s focus is compliance-driven, not future-focused. The tax return and audited financial statements are products that show the financial results at a specific point in time. It is unrealistic to expect your CPA to include ongoing consulting in their services.
To describe in sports terms, think of the CFO like the defensive coach on the field, helping to manage the organization’s financial moves, calling plays in the financial world.
The outside CPA is like the scorekeeper, up in the booth, keeping the score. It is unfair to blame them when you miss a goal or miss the opportunity to score a touchdown.
Consider adding a CFO to your leadership team to bring a financial, future-focused view to your organization’s decision-making process.
Barker Associates, CFO Strategists, works with entrepreneurial growth companies, established corporations and nonprofits to develop positive cash flow and increase the value of your company. We can be contacted at email@example.com or 904.728.2920.