TA Accounting

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Joined
Dec 11, 2016
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26
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3
Just thought I drop a little bit of accounting advice for everybody.

As an Outsource CFO, I see a very common them when a distress business owner shows up at my office. The owner of these distress companies often mistake the role of their tax CPA and found out too late the difference between a CPA and a CFO.

So what is the difference between a CPA and a CFO? Well, a CPA is generally concerned with taxes and audits while a CFO is concerned about the future of the financial future of a company.

The roles between the two are also in stark contracts. A CPA often deals with historical records - filing your taxes at year end and/or preparing audits. In both cases, the financials have already happened and changing them now would be meaningless (with the few exceptions of tax saving).

In contrast, a CFO is concerned with the day-to-day situation of a company. They review cash flow, profitability, cost management, break-evens, forecasts/budgets, and help in strategic planning. A CFO main concern is with the future of a company rather than its past.

This makes it a difficult situation for entrepreneurs who aren't familiar with the contrast of CPA vs CFO and they often think their financials are sound if they file their taxes at year-end. This simply is one of the biggest mistakes that business owners make anywhere.

As entrepreneurs, please consider this when you open your business or even manage an existing one. Hire an Outsource CFO will pay dividends in the time you save, the peace of mind you get, and the head aches you avoid.
 

VirtualGlobalPhone

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Apr 22, 2016
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@TA Accounting ;

One of the perception / reality in today's market is CFO portfolio is usually defined when the company is a listed or having sufficient funding already.

Usually entrepreneurs or start-ups, the founder / one of the co-founder himself keep this close to his pocket as the funding is from the heart and not usually from bank.

So any option / knowledge to break this barrier and simplifying will help many here to look alternate as yours. Just a view ... i may be wrong...
 

TA Accounting

Member
Joined
Dec 11, 2016
Messages
26
Points
3
@VirtualGlobalPhone

I've tried a few workshops in the past - but the main issue I ran into was; they were all through the Chamber of Commerce. The general public couldn't attend and it was always at 7am. If I don't want to hear about small business accounting at 7am (and I'm an accountant) - I can only assume what others must be thinking. =)

There is also the issue that I am running into where business owners focus too much into the tax side of a business. If I am a guest speaker, 80% of the questions directed at me are tax questions. The downside? I don't prepare taxes and I don't profess to be an expert.

So the trouble is really two folds. How do I attract these business owners to the workshop AND how do I change their focus from taxes to actual small business accounting. So that's what's stumped me.
 
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