Small Business Shared Interest Group

Ethical practices in accounting and finance are crucial for the development and growth of small businesses. Due to limited resources, many micro or small-scale businesses cannot afford to hire multiple accounting professionals for various specializations. This makes it essential for the existing accounting professionals to maintain high ethical standards in their roles.

In a recent conversation with a small business entrepreneur, he shared the challenges of having only two accounting employees managing all financial matters, leading to difficulties in maintaining proper internal controls. I recommended recruiting a Certified Management Accountant (CMA) or a Chartered Accountant, professionals known for their strong ethical training and reliability. However, the entrepreneur expressed concerns about the cost of hiring such professionals.

While my view on this is that CMAs or Chartered Accountants may seem costlier initially, they offer significant long-term benefits. These professionals can serve as trusted partners, providing valuable business insights and supporting business growth. Their strong ethical standards allow entrepreneurs to focus on their core business activities without worrying about financial mismanagement. Investing in a CMA or Chartered Accountant can ultimately lead to more sustainable growth and stability for small businesses, making it a worthwhile consideration despite the upfront costs.

I welcome insights from all you experts to help us form a well-rounded perspective on this topic.

I agree, hiring a CMA who is held to the highest of ethical standards may be ideal, but I often hear the same complaint from my clients regarding the cost involved.  The other added complexity right now is an overall talent shortage in the accounting profession.  Sometimes my clients are lucky if they can even find a good bookkeeper, so finding a qualified controller or CFO seems out of reach.

One thing that comes to mind is the idea of hiring a fractional CFO who holds the necessary certifications.  A fractional CFO can provide services on a part-time, as-needed basis and could therefore help the small business reduce costs while still allowing them to work with someone who has the experience, knowledge, and ethics required to lead the financial and business growth the entity is striving for.  

We have several fractional CFOs in this group, does anyone have any thoughts on this as an option?

Ethical practices in accounting and finance are crucial for the development and growth of small businesses. Due to limited resources, many micro or small-scale businesses cannot afford to hire multiple accounting professionals for various specializations. This makes it essential for the existing accounting professionals to maintain high ethical standards in their roles.

In a recent conversation with a small business entrepreneur, he shared the challenges of having only two accounting employees managing all financial matters, leading to difficulties in maintaining proper internal controls. I recommended recruiting a Certified Management Accountant (CMA) or a Chartered Accountant, professionals known for their strong ethical training and reliability. However, the entrepreneur expressed concerns about the cost of hiring such professionals.

While my view on this is that CMAs or Chartered Accountants may seem costlier initially, they offer significant long-term benefits. These professionals can serve as trusted partners, providing valuable business insights and supporting business growth. Their strong ethical standards allow entrepreneurs to focus on their core business activities without worrying about financial mismanagement. Investing in a CMA or Chartered Accountant can ultimately lead to more sustainable growth and stability for small businesses, making it a worthwhile consideration despite the upfront costs.

I welcome insights from all you experts to help us form a well-rounded perspective on this topic.

I agree, hiring a CMA who is held to the highest of ethical standards may be ideal, but I often hear the same complaint from my clients regarding the cost involved.  The other added complexity right now is an overall talent shortage in the accounting profession.  Sometimes my clients are lucky if they can even find a good bookkeeper, so finding a qualified controller or CFO seems out of reach.

One thing that comes to mind is the idea of hiring a fractional CFO who holds the necessary certifications.  A fractional CFO can provide services on a part-time, as-needed basis and could therefore help the small business reduce costs while still allowing them to work with someone who has the experience, knowledge, and ethics required to lead the financial and business growth the entity is striving for.  

We have several fractional CFOs in this group, does anyone have any thoughts on this as an option?

Ethical practices in accounting and finance are crucial for the development and growth of small businesses. Due to limited resources, many micro or small-scale businesses cannot afford to hire multiple accounting professionals for various specializations. This makes it essential for the existing accounting professionals to maintain high ethical standards in their roles.

In a recent conversation with a small business entrepreneur, he shared the challenges of having only two accounting employees managing all financial matters, leading to difficulties in maintaining proper internal controls. I recommended recruiting a Certified Management Accountant (CMA) or a Chartered Accountant, professionals known for their strong ethical training and reliability. However, the entrepreneur expressed concerns about the cost of hiring such professionals.

While my view on this is that CMAs or Chartered Accountants may seem costlier initially, they offer significant long-term benefits. These professionals can serve as trusted partners, providing valuable business insights and supporting business growth. Their strong ethical standards allow entrepreneurs to focus on their core business activities without worrying about financial mismanagement. Investing in a CMA or Chartered Accountant can ultimately lead to more sustainable growth and stability for small businesses, making it a worthwhile consideration despite the upfront costs.

I welcome insights from all you experts to help us form a well-rounded perspective on this topic.

I agree, hiring a CMA who is held to the highest of ethical standards may be ideal, but I often hear the same complaint from my clients regarding the cost involved.  The other added complexity right now is an overall talent shortage in the accounting profession.  Sometimes my clients are lucky if they can even find a good bookkeeper, so finding a qualified controller or CFO seems out of reach.

One thing that comes to mind is the idea of hiring a fractional CFO who holds the necessary certifications.  A fractional CFO can provide services on a part-time, as-needed basis and could therefore help the small business reduce costs while still allowing them to work with someone who has the experience, knowledge, and ethics required to lead the financial and business growth the entity is striving for.  

We have several fractional CFOs in this group, does anyone have any thoughts on this as an option?

Ethical practices in accounting and finance are crucial for the development and growth of small businesses. Due to limited resources, many micro or small-scale businesses cannot afford to hire multiple accounting professionals for various specializations. This makes it essential for the existing accounting professionals to maintain high ethical standards in their roles.

In a recent conversation with a small business entrepreneur, he shared the challenges of having only two accounting employees managing all financial matters, leading to difficulties in maintaining proper internal controls. I recommended recruiting a Certified Management Accountant (CMA) or a Chartered Accountant, professionals known for their strong ethical training and reliability. However, the entrepreneur expressed concerns about the cost of hiring such professionals.

While my view on this is that CMAs or Chartered Accountants may seem costlier initially, they offer significant long-term benefits. These professionals can serve as trusted partners, providing valuable business insights and supporting business growth. Their strong ethical standards allow entrepreneurs to focus on their core business activities without worrying about financial mismanagement. Investing in a CMA or Chartered Accountant can ultimately lead to more sustainable growth and stability for small businesses, making it a worthwhile consideration despite the upfront costs.

I welcome insights from all you experts to help us form a well-rounded perspective on this topic.

Ethical practices in accounting and finance are crucial for the development and growth of small businesses. Due to limited resources, many micro or small-scale businesses cannot afford to hire multiple accounting professionals for various specializations. This makes it essential for the existing accounting professionals to maintain high ethical standards in their roles.

In a recent conversation with a small business entrepreneur, he shared the challenges of having only two accounting employees managing all financial matters, leading to difficulties in maintaining proper internal controls. I recommended recruiting a Certified Management Accountant (CMA) or a Chartered Accountant, professionals known for their strong ethical training and reliability. However, the entrepreneur expressed concerns about the cost of hiring such professionals.

While my view on this is that CMAs or Chartered Accountants may seem costlier initially, they offer significant long-term benefits. These professionals can serve as trusted partners, providing valuable business insights and supporting business growth. Their strong ethical standards allow entrepreneurs to focus on their core business activities without worrying about financial mismanagement. Investing in a CMA or Chartered Accountant can ultimately lead to more sustainable growth and stability for small businesses, making it a worthwhile consideration despite the upfront costs.

I welcome insights from all you experts to help us form a well-rounded perspective on this topic.

Ethical practices in accounting and finance are crucial for the development and growth of small businesses. Due to limited resources, many micro or small-scale businesses cannot afford to hire multiple accounting professionals for various specializations. This makes it essential for the existing accounting professionals to maintain high ethical standards in their roles.

In a recent conversation with a small business entrepreneur, he shared the challenges of having only two accounting employees managing all financial matters, leading to difficulties in maintaining proper internal controls. I recommended recruiting a Certified Management Accountant (CMA) or a Chartered Accountant, professionals known for their strong ethical training and reliability. However, the entrepreneur expressed concerns about the cost of hiring such professionals.

While my view on this is that CMAs or Chartered Accountants may seem costlier initially, they offer significant long-term benefits. These professionals can serve as trusted partners, providing valuable business insights and supporting business growth. Their strong ethical standards allow entrepreneurs to focus on their core business activities without worrying about financial mismanagement. Investing in a CMA or Chartered Accountant can ultimately lead to more sustainable growth and stability for small businesses, making it a worthwhile consideration despite the upfront costs.

I welcome insights from all you experts to help us form a well-rounded perspective on this topic.

I am one of those fractional CFOs in this group. As I like to tell others who ask "What the heck is a fractional CFO?" "It's a CFO for small businesses that don't need a full-time CFO. They get a fraction of my time and a fraction of my bill." Depending on the size of the small business, there are many times where my firm IS my client's entire accounting department.

Small/micro companies have similar accounting needs to larger companies. The only difference is the size or scale. As an example, they need to follow ASC 842 just like everyone else. They need to have proper revenue recognition. They have AR and AP automation needs. What they don't have are 500 bills to be processed a month so most AP automation companies ignore them. They don't have several million in gross revenue so AR automation companies ignore them. They don't have 200 leases so lease automation companies ignore them. The list goes on. The end result is that Excel is used as their primary accounting workpaper tool, with the associated error-prone results. My biggest needs at the moment are a debt schedule software solution and a fixed asset management program. These programs need to have an accountant hub with several client sub accounts with their own users who only have access to their account and at a reasonable price. I am also a small business myself.

What I have done for my clients is help them create a strategy, stay focused on their goals, and battle for them to get what they need from lenders and insurance companies. While I do not offer assurance services to my clients, I do make sure their financials are presented according to US GAAP. Twice, I have been able to prove my clients are within a lender's debt covenants when their tax returns result in ratios that were out of compliance. I talk with lenders to help my clients secure financing. While my client is the one that ultimately signs the financing agreement, the lenders talk with me about the financials that were submitted as part of the application process. I am constantly looking for solutions to my clients needs, even those they are not aware they have or do not have yet.

The one thing I insist on is that I do not have any authority to pay bills or access their banking accounts with more than view only access. The very last thing I want is to be accused of misappropriating client funds.

Ethical practices in accounting and finance are crucial for the development and growth of small businesses. Due to limited resources, many micro or small-scale businesses cannot afford to hire multiple accounting professionals for various specializations. This makes it essential for the existing accounting professionals to maintain high ethical standards in their roles.

In a recent conversation with a small business entrepreneur, he shared the challenges of having only two accounting employees managing all financial matters, leading to difficulties in maintaining proper internal controls. I recommended recruiting a Certified Management Accountant (CMA) or a Chartered Accountant, professionals known for their strong ethical training and reliability. However, the entrepreneur expressed concerns about the cost of hiring such professionals.

While my view on this is that CMAs or Chartered Accountants may seem costlier initially, they offer significant long-term benefits. These professionals can serve as trusted partners, providing valuable business insights and supporting business growth. Their strong ethical standards allow entrepreneurs to focus on their core business activities without worrying about financial mismanagement. Investing in a CMA or Chartered Accountant can ultimately lead to more sustainable growth and stability for small businesses, making it a worthwhile consideration despite the upfront costs.

I welcome insights from all you experts to help us form a well-rounded perspective on this topic.