How Should the Business Owner Work With a CPA or CPA Practice?

Updated: March 19, 2011

Some firms offer financial advice and other services, but many CPAs have little or no Chief Financial Officer (CFO) expertise, other than as possibly the managing partner in the firm itself.

Since the business model is not suited to a weekly or similar visit, they never learn the specific in's and out's of their clients business. They don't really know the cash flow management issues, the full profitability analysis (aside from the standard balance sheet/income statement ratios) and other planning issues.

Thus the CPA can't act as a full-blown advisor, since they are not intimate with the inner workings of the company. CPAs are best used to gauge the company's attention to Generally Accept Accounting Principles (GAAP) and Financial Accounting Standards Board (FASB) pronouncements, as well as IRS rulings then to provide CFO services.

Lastly, it is not the CPAs role to create your balance sheet, profit and loss statement and statement of cash flows, that's the responsibility of your CFO. The CFO is there to forecast, the CPA analyzes what has happened.

Understanding the aforementioned makes the relationship between the business owner and the CPA easier. Picking the right firm is like picking any other advisor; expertise in the given industry if possible, personality of the point person at the CPA firm and of course, cost.

Featured Research
  • The New 2017 Contact Center Comparison Guide

    We’ve put together a comparison guide that covers over 40 of the top call center software options, providing details on pricing, features, support, and integrations. If you want to save time and still make a great investment, this guide is a must read. more

  • Phone Systems Comparison Guide: VoIP for Small to Midsize Businesses

    It was a painstaking process, but to help B2B companies start 2017 off on the right foot, we recently compiled a comparative list of the top 43 small to midsize business phone vendors. more

  • 16 Mistakes to Avoid When Buying a Phone System

    Purchasing a phone system for your business is a major investment. With the average business changing phone systems only once every seven years, it’s important to make the right decision. more

  • 2017 Video Conferencing Trends

    New advancements are also making video more beneficial to a greater range of business areas including marketing, HR, and internal operations. Many solutions are economical, easy to use, and very effective at making communication more personal. more

  • [Infographic] Top 11 VoIP Vendors

    A good VoIP provider will offer additional benefits as well, but many first-time buyers find assessing each option to be difficult. Nevertheless, this is an important step in the buying process because a substandard provider can easily waste both your time and money. more