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Cutting through the Red Tape: How CPA Firms Add Value in Fractional Accounting

Published on by Jill Prendergast in Client Accounting & Advisory, Firm News

Cutting through the Red Tape: How CPA Firms Add Value in Fractional Accounting

If you’re considering the fractional model for CFO and accounting services, you’re likely wondering about the best option for your needs. As more organizations realize the value in fractional accounting services – getting the financial strategy and insight you need to scale, without the cost of a full-time resource, and overcoming the increasingly painful talent crunch, to name a few – more and more options become available.

How working with a CPA firm cuts through the red tape

One of the greatest values a CPA firm brings to the table in fractional CFO and accounting services is cutting through what you might consider the red tape of compliance: A CPA firm inherently does the heavy lifting to ensure their work product and advisory services meet ethical and professional standards required by the Internal Revenue Service (IRS), the American Institute of Certified Public Accountants (AICPA), the Public Company Accounting Oversight Board (PCAOB), and the Securities and Exchange Commission (SEC) – not only streamlining service needs, but also providing you with peace of mind.

Ensuring current compliance

While reputable providers will be knowledgeable about tax and regulatory requirements, CPAs are required to stay current on ever-changing tax laws and regulations. This cutting-edge training means they help ensure your financial records and transactions are compliant with the latest rules – which cuts your risk of costly mistakes, incurring substantial penalties, amended returns, and seemingly endless hours of effort.

The standard bearers

CPAs are held to high ethical standards by their professional organizations. According to the AICPA, “All AICPA members are required to follow a rigorous Code of Professional Conduct, which requires that the act with integrity, objectivity, due care, competence, fully disclose any conflicts of interest (and obtain client consent if a conflict exists), maintain client confidentiality, disclose to the client any commission or referral fees, and serve the public interest when providing financial services.”

This commitment to ethics provides assurance that your financial information is handled with integrity and confidentiality – once again providing you with invaluable peace of mind that your financials are in order – so you can focus on growing the business and hitting the organization’s goals.

Savings in the long run

While CPA firms may charge higher fees compared to non-CPA providers, the potential cost savings from avoiding errors, penalties, and financial inefficiencies can outweigh the initial investment. After all, as the legendary UCLA coach John Wooden famously asked, “If you don’t have time to do it right, when will you have time to do it over?”

Summing up

In summary, the “red tape” value of working with a CPA firm for fractional accounting services often lies in the regulatory compliance, high ethical standards, financial efficiencies, and strategic insights they bring to the table. While it may involve some initial paperwork and processes to engage a CPA firm, the benefits in terms of financial accuracy, risk management, and overall financial health can be substantial for your business.

If you’re interested in exploring the fractional CFO and accounting services model or just have a few questions, contact us. Our team of top fractional accounting pros are here to help.


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