Not all accountants
I got a reply from a Daily CFO reader the other day that changed how I think about educating founders on accountants.
They replied to one of my standard welcome emails
(This is a 5-email sequence I send to all readers in their first week, to give everyone a quick orienting taste before diving into whatever topic I’m talking about that month.)
The subject line of the email is:
"Don't ask an accountant"
And it's all about how founders often misunderstand what accountants are trained to do
And so they use accountants incorrectly (by asking them strategy questions)
And then they get bad results (because accountants are trained in accounting, not strategy)
And then the founder ends up deciding that all of Finance is useless
And then they basically ignore it or under-invest in it for years
And they end up running their company at a total disadvantage.
The person who replied to this email way deeply offended.
"WOW - Maybe read the room before you send out a sales pitch. That is the most insulting piece I have ever read."
She’d been an accountant for decades, had run her own business, and said she'd provided CFO-level service for years.
She also pointed out that if bashing other professions was how I got clients, then maybe I should rethink my marketing.
Which is a fair point.
…But here’s the thing:
I love accountants.
They are the only financial operations function that MUST maintain a professional certification
They are incredibly informed in all the tax code and regulations I know nothing about
They have tenants in their certification requiring a high standard of professional ethics
They help my strategic finance and FP&A teams have clean, accurate data to work with
They have continued education requirements that mean they are always learning
Most are very cost-effective given their level of education and expertise
They know how to save us money on taxes, tax credits, and more.
Those folks who do transition from CPA to Strategic Finance benefit from a robust knowledge of accounting rules that can help us shortcut quality model building.
In fact, I work more with accountants than I do almost any other profession
But
Founders who don't understand where they traditionally fall in the finance stack
(Administration, tax treatment, compliance, etc)
Sometimes ask them questions about things they don't know as much about
(Drivers-based forecasting, investor relations, M&A negotiation, headcount or product planning)
And those founders get in trouble
(Just like I would get in trouble if someone asked ME exactly how much to expect in R&D tax credits!)
All of this is true.
But also: There is SO MUCH that founders can get from great accountants.
And I don't think I point that stuff out as often
And accountants really deserve it.
So in the future,
I will.
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