Last week I was talking with the CEO of a construction company. I will refer to him as Tom. Tom and I talked through supply chains being jammed up, the quality of available labor going down, and inflation making many purchases more expensive. Plus the “great resignation” is making talent more challenging and more costly.
The pressure is on.
Even in normal times construction tends to be a competitive margin industry unless they are building something truly unique. So there isn’t much wiggle room.
I asked Tom about how he is making decisions. He described asking his accountant to prepare analysis and recommendations, asking his CPA for advice, relying on his construction project managers, or just using his gut.
Have you ever asked your accountant/CPA to assess the results of a project or to provide recommendations?
Are you still waiting?
My favorite is when CEOs ask their CPA for guidance about an idea. Frequently, the CPA responds with “be realistic.” If CEOs were “realistic” there wouldn’t be a company to begin with.
My second favorite observation is when Controllers review financials with a lender. Somehow Controllers don’t tell a compelling story with the numbers. So if those Controller/Lender meetings don’t scare you nothing will.
So, are you frustrated with your Accountant?
Here’s the catch, frequently CEOs ask the wrong person to help them make business decisions with clarity and confidence.
Smart CEOs confuse roles that deal with money. The Accountant, CPA Tax Prep/Audit, and Growth CFO roles are distinct. As a result of role confusion, CEOs often don’t have clear decision-making, a financial flight plan to guide follow-through, or a safety net. Most often, CEOs leave money on the table due to this role confusion. So let’s take a step into clarity.
Controllers and Accountants are experts in using GAAP rules to process transactions like customer invoices and payroll. Plus Controllers/Accountants prepare financial statements. But this doesn’t mean that they understand the number story or are able to communicate it well. Accountants are not equipped to assess results or guide the business from foundation to your succession destination to get paid twice.
CPAs are experts at tax compliance and doing third-party audits of your financials. Frequently they are not skilled at doing the day-to-day work of an accountant. Tax compliance and audits are useful but neither is going to help you forge your way forward with peace of mind. Most CPAs aren’t even equipped to develop a real tax strategy beyond tax compliance. Most are good at tax tactics like disbursing your cash before year-end but that is not a tax strategy.
Most traditional CFOs are not the go-to person to help CEOs figure out the flight plan forward. Instead, traditional CFOs are really accounting transaction and system experts with some budgeting and forecasting skills. Traditional CFOs focus on the financial systems and outcomes of the finance & accounting departments. So if you are frustrated with your “CFO” it may be that you have a traditional CFO or that your CFO is really a Controller with a big title.
We reimagined the CFO role as Growth CFOs to provide private business owners the same access to expert outcomes that the big and best companies have. A Growth CFO is the finance person you love talking with. Doing so gives you peace of mind.
They use their expertise with numbers and business acumen to provide a level of clarity and confidence that you didn’t have before. This includes gaining visibility across the journey to seven succession options to get paid twice.
The Growth CFO helps you win new customers. They know the 80/20 of your customers, optimize prices to drop more to the bottom line and help your customer acquisition team align itself with this knowledge to secure new clients in the top 20% segment.
Growth CFOs help you set your future organizational chart then build people’s capacity to perform even better. In addition, they work side by side with your managers to develop their financial management skills with the Habits of Profitability™. The Habits empower team members to take action proactively with a daily dashboard.
The right Growth CFO is like having a navigator working side by side with you across your journey.
In the money world, the Accountant, CPA Tax Prep/Audit, and Growth CFO roles are distinct. If you are frustrated with your Accountant you may be asking them to do things that they are not equipped to do. Or you have a C-player.
Are you frustrated with your Accountant?
How might we help your Company? Unsure at this point because we don’t know each other, but if you give me the chance to ask some key questions, I will tell you if we can help or not.
We are here to help businesses become more successful financially, plain and simple.
Would it be worth 25-minutes to learn more? I promise it will not be a waste of your time. Typically, after a call or two, I provide insights and value you will benefit from whether you decide to proceed with discussions or not. No pressure, no obligation. Schedule a discovery call with me.
