Can a CPA Be a Business Adviser or Are They Just Crunching Numbers?
When considering a CPA (Certified Public Accountant) for your business, it's important to understand whether they can provide more than just financial number crunching. Some CPAs excel as business advisors, offering valuable insights to help your business thrive. However, other CPAs may focus primarily on tax and procedural tasks.
Value in Choosing a CPA as a Business Adviser
My opinion is unequivocal: your CPA should undoubtedly serve as a business adviser. There is limited value in paying someone to merely fill in forms or print out financial statements. The true worth of a CPA lies in their ability to advise you on strategies to help your business succeed and provide meaningful interpretations of financial information. This is where you gain the most benefit from their expertise.
When you meet with a CPA, go into the discussion expecting that level of strategic insight. If you don't feel you're receiving this value, consider a different CPA. The right CPA can help you navigate complex financial decisions and provide guidance on how to achieve your business goals.
The Heterogeneity of CPAs
Not all CPAs are created equal. Many are well-versed in both business strategy and financial planning, offering a dual role as both a bookkeeper and an advisor. However, some CPAs may prioritize tax and procedural work, which can be more transactional in nature. It's essential to have a good relationship with the CPA you choose and feel confident in their ability to provide business advice. If you find that the CPA you've selected does not offer the level of strategy you need, it might be worth exploring other options in the future.
Conclusion
CPAs can serve as valuable business advisers, providing strategic insights and helping you to grow your business. To find a CPA who can fulfill this role, look for one who has experience in managing business processes and can offer financial advice beyond mere number crunching. Your CPA should be able to interpret the numbers and provide actionable strategies for your business to succeed.
Final Thoughts
Bookkeepers and accountants are primarily focused on the arithmetic side of finance. CPAs, on the other hand, are advisors with extensive technical expertise in tax, audits, and business processes. Your CPA should be capable of offering strategic insights to help your business succeed while also handling the more administrative aspects of financial management.
By choosing a CPA who combines strong financial expertise with strategic business acumen, you can ensure that your financial decisions are not only accurate but also align with your broader business objectives.