Hitendra Patil is the President of Global F&A Services, Datamatics Business Solutions, Inc. | Exclusive Services for CPA/Accounting Firms.
Jane, a businesswoman, is standing at a fork in the road. She must either invest in product line expansion or cut costs to ride out the economic downturn. She is not interested in whether the books balance to the penny. What she wants to know is which path will keep her business afloat or fuel its growth. That is where true accounting power comes in. To help clients truly leverage that power, accountants must put themselves in their clients’ shoes.
Here’s a bold truth: Being an accountant is no longer about what accountants do at firms; it’s about helping clients make timely, prudent and correct decisions that may make or break a business or people’s financial future.
The Story Behind The Numbers
Don’t the numbers in accounting always tell a story?
Accountants now have oodles of data at their fingertips. However, an accountant’s skill comes from deciphering what the data is telling, not just keying figures into some software or onto some spreadsheet. It is about finding that hidden story behind those numbers. Is the trend of sales taking a route that is bothering you? Are expenses outpacing revenues? And so on.
Accounting is the language of business, and accountants are the most proficient professionals who know this language inside and out. The numbers don’t lie, but they sure do need a translator. The accountant must connect the dots and find the narrative to get any sense from the raw data. Many of those dots are in the clients’ minds, not in the data—although data can reflect what was in the clients’ minds that led to the numbers. The accountant is responsible for connecting the dots into actionable terms for the business leaders.
The Unsung Architects Of Business Strategy
Only a few people recognize that accountants are the backbone of any company’s long-term strategy. Moreover, they are usually silent strategists who, behind the scenes, build the future of business.
Quite often, when the CEO stands up and speaks about revenue increase or efficiency improvement, the accountant is helping them develop strategies to actually make it happen. Whether identifying underperforming areas in the business or management, checking the efficiency of taxes or preparing for acquisition, accountants have always built the framework to support business growth.
Accountants: The Surgeons Of Risk
Just like a surgeon finds the harmful elements in a body and removes them, in the same manner, the accountant has the role of helping the business dissect financial risk.
Whether it’s a cash flow problem, an unduly risky investment or finding operational inefficiency, accountants perform the critical function of risk management. Every decision they may influence turns the company away from possible pitfalls or at least prepares it for turbulence. In this respect, accountants keep the business healthy and perform preventive financial surgery for long-term success.
The What-If Wizards
The accountants are professionals to approach for any what-if questions in a boardroom or a strategic planning session. What if we expanded into new markets? What if we shaved off costs in some part of the business? What if we moved to a different pricing model?
Each option as a thought-leading proposition has associated risks that need quantification. The accountant runs numbers and scenarios, giving data-driven insight into the decision. Being able to model these outcomes and anticipate stumbling blocks is what makes the accountant such an integral part of any business strategy.
Digital Detoxifiers: Translating Chaos Into Calm
Living in an overwhelmingly informative world today, accountants are like “digital detoxifiers” who can translate chaotic streams of financial information into orderly, actionable insights. If misinterpreted, data becomes noisy, overwhelming and often misleading.
However, accountants successfully filter out that noise to zoom in on the metrics that count toward business success. They review complex financial reports, study market trends and underline items needing immediate attention. In this sense, they don’t just manage numbers; they bring clarity with which businesses can take purposeful and confident action.
The New Role Of The Accountant: Influencer Of Business Decisions
Their ability to convert raw data into relevant insights and help clients see the big picture distinguishes accountants in the market. This is part of the new evolution facing the accounting profession. An accountant is not just the keeper of the books or financial records but a leading influencer of business and financial decisions.
Finding an accountant is not a question of finding someone who will balance the books but rather finding a professional who can help business owners overcome problems, make confident decisions and take advantage of opportunities. Therein lies the value of an accountant.
Accountants: It is not about what you do as your work but the difference you make. You are in an influential position where, as an accountant, you drive decisions that will shape the futures of businesses or people’s financial lives, create growth opportunities and control risks. The job is taking those numbers, adding meaning, unlocking potential and helping assure success.
The Challenge
Accountants are great at describing what they do, but it’s almost invariably jargon that clients don’t understand. Thus, accountants need to make sure the prospects/clients truly understand the impact of what accountants do.
Rather than saying, for example, “We can do bookkeeping for you,” accountants can express: “It’s not about having your books balanced to the dot—which, anyway, we will do. That doesn’t help you manage your business any better, per se. Bad decisions hurt because you don’t have a clear picture of your financials. Sloppy books cause blind spots, and those blind spots cause rotten decisions. I’m here to track your transactions, but not just that. My job is taking those numbers all the way into deep insights that will avoid cash flow issues, highlight growth opportunities and help you confidently make decisions. It is about knowing precisely what those numbers tell you when it’s not too late.”
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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