Pub. 1 2019 Issue 4

21 nebraska society of cpas W W W . N E S C P A . O R G BUSINESS ADVISORY SERVICES OPEN NEW OPPORTUNITIES FOR CPAS BY LORETTA M. TUBIELLO-HARR, CPA, ABV, CVA & KIM A. VANDERGRIFT, CPA, TUBIELLO-HARR & ASSOCIATES LLC CPA firms and the services they provide continue to evolve as the profession responds to a changing business environment. Many are expanding into business advisory services. This can provide great opportunities for growth if firms clearly grasp their professional independence requirements. Business advisory services by CPAs are, generally, any service offered to clients that resides outside of the accounting, attest, tax preparation, and tax planning functions. They vary across many disciplines, and the services offered by one CPA may be different than those offered by others, depending on each CPA’s areas of expertise. For many closely held businesses, their adviser is an indispensable resource for the owner when he or she is solving business problems or strategically planning for the future. CFO Advisory Services The most common CPA advisory service is the outsourced CFO. Many CPAs in public accounting have the expertise to do this type of service from years of experience working with businesses across many industries, in addition to the profession’s core strengths in the accounting and tax functions. CFO advisory services may currently be provided by you, though not specifically labeled as “advisory.” CFO advisory services are designed to support the business owner or CEO by focusing on maximizing cash flow, improving prof itability, and optimizing the f inancial health of the organization. CPAs have the expertise to act as the subject matter expert in all tax and financial matters and as a liaison between the company and its external auditors, retirement plan administrators, legal counsel, and bank relationships. Many closely held businesses do not have an in-house CFO. They may have a controller or a high-end bookkeeper that addresses the balance sheet aspect of the CFO function, but these individuals typically do not bring strategic focus to the team. Controllers and bookkeepers review financial history, whereas CFOs focus on future events. CFO advisory services may include the following services, among others: • Identifying policies for tax, regulatory, and financial compliance. • Participating in forecasting and strategic planning by developing adjustable metrics and models. • Assisting with structuring the accounting and finance departments, including the hiring process. • Developing efficient workflow for accounting processes. • Developing policies to strengthen the internal control environment. • Executing month-end closes when internal staff is limited. • Developing rolling cash flow forecasts and corresponding investment strategies. • Creating a budgeting process and timeline. • Developing cost-justif ication models for hiring and equipment purchases. • Developing job-costing models. • Assisting with all finance-related decisions, activities, and monitoring, including traditional debt (such as bank lines of credit, term loans, leasing arrangements, stock or corporate bonds, equity investments) and nontraditional arrangements (such as angel financing).