Qualified individuals in Sarasota FL services often provide CFO services to businesses and clients. It might be a nice way to increase the profits/revenue and to develop new client relationships. However, CPAs who are publicly practicing must know about the risks related to it. 

Nowadays, a big number of clients have online businesses. Due to the technology that they have at their expense, business growth can be ramped up in months rather than in years. At the same time, a big number of these business owners to not have the skills necessary for managing their rapid growth of business.

In case you are a public practitioner and have a client who wants you to take the role of a CFO, consult with your insurance broker and your lawyer both. Before making a decision on how to proceed, ask them about the insurance coverage problems and potential legal issues that you can run into. Often at times, it is suitable to let your lawyer form an agreement for independent contractors for you. As a result of this, your legal liabilities will reduce to a good extent. As a result of this, however, your income will become taxable. Nevertheless, it may be a great way for you to protect your CPA firm and yourself from liabilities under unwanted circumstances. 

Also, it is important to remember that management decisions are not your responsibility. All that you need to do is to provide consulting. However, leave the management decisions to the clients. Moreover, it is better to communicate by email as it serves as an evidence later in disputes. On the other hand, communicating via the phone often leaves room for error. 

At the same time, avoid signing any contracts on behalf of your client. Rather, such things should be left to the owner of the business. 

Another important precaution is to stay within your service scope. After your scope of work/service is defined, stay within that limit and do not perform services that are not covered by you and the professional standards that are present in the engagement letter.

Often at times, CPAs believe that since they have formed a friendship with their clients, they will not get sued.

“Since my client is my friend, chances are that he will not sue me”

The above mentioned statement is extremely wrong, and puts a CPA in great risk. Even in case you have had years long friendship or a great work-relationship with the client, the client can still sue you in case they are in a dire financial strait. In this case, turning you into a scapegoat would seem fair, as the client may already be looking for someone who can be blamed. 

So CPAs and individuals should always keep all of these precautions in their mind when they are working with clients, or offering them services as a CFO. 

How do cpa's indentify client needs

Certified Public Accountants (CPAs) identify their client's needs by following a structured and comprehensive approach. Here are some steps that CPAs use to identify client needs:

Initial Meeting/Talk: At the initial meeting or discussion, CPAs ask detailed questions about the client's business to understand their specific needs. This may involve asking questions about business goals, specific challenges, and requirements.

Review of Financial Statements: CPAs review their client's financial statements, including income statements and balance sheets. This helps them understand the company's financial position and identify economic trends that could be useful to the client.

Analyzing Past Financial Performance: CPAs consider the client's past financial performance to look for trends and identify potential problems before they arise in the future.

Risk Analysis: CPAs perform a thorough risk analysis of the client's business to identify potential risks that may affect financial performance. The risk analysis may involve reviewing the client's internal controls, insurance coverage, and other risk mitigation strategies that are in place.

Industry Research: CPAs research the industry in which their client operates to be in a better position to advise them on market trends and challenges specific to that industry.

Business Evaluation: At times, CPAs may involve outside, third-party experts to help evaluate the client's business, which can provide valuable insights into areas that may need improvements or opportunities for growth.

By following this process and utilizing their professional expertise, CPAs can identify their clients' needs, recommend suitable solutions, and set their clients up for financial success.

Sarasota Accountant Fajardo And Associates can help