By Rich Bond
It has been a lot of fun posting blogs related to Aesop’s fables. The amount of wisdom in the tales amazed me, as did their applicability to common business problems.
There is one “other” fable I wish to address. It’s actually my own:
Most business owners sincerely believe they know enough about the finance side of their companies to earn the profits their businesses are capable of earning. Plus, they rely on their CPAs to take care of the books, taxes, payments, and basically all things financial.
I, too, rely on my CPA to do my taxes. It’s important to know when to farm out work to an expert in an area that is not my main competence. (I’m a financial recruiter with a long history of working in corporate finance.)
Here’s my problem with relying solely on a CPA to manage the financial side of a growing business:
- A CPA is an expert in accounting, but he or she is not an expert in finance.
- Financial management has a broader function – working as a team with the owner and management to truly understand the workings of the business and how the flow of money affects every aspect.
- A CFO, Controller, or financial head must know how to analyze, forecast, and manage the financial side of the business, as well as raise capital as needed.
- Financial management is art – not a science. A strong financial leader can add huge value to a good business.
If you’d like to discuss the difference between what a CPA and an internal financial head can do in your business. Email me at: Richard.bond@bondandcompany.com. Call or text me at: 203-216-0618.
