Question: Why do CPAs Make Excellent Business Consultants?
I'm a CPA and also a business consultant. Why do accounting skills translate well to consulting? I often receive this question from family, friends, and others in my professional network.
Consultants provide analysis, expert opinions, and recommendations to organizations or individuals based on their in-depth knowledge. Business consultants troubleshoot and provide strategies to help prevent problems, improve business performance, and accelerate growth.
In my view, CPAs make exceptional business consultants and advisors — and here’s why:
Reason #1: CPAs Have a Vast Technical Knowledge Base
Just like many professions, it takes a lot of hard work and dedication to become a Certified Public Accountant (CPA). After passing the Uniform CPA Examination (a 16-hour test comprised of four technical sections), a candidate must obtain the required experience in order to be accepted by their state Board of Accountancy. The rigorous credentialing process alone elevates a CPA from other financial professionals and consultants.
CPAs utilize proper accounting practices to ensure compliance with federal and state regulations. It's standard practice for CPAs to possess a detailed understanding of Generally Accepted Accounting Principles (GAAP) and financial reporting. In addition to their exceptional knowledge of compliance requirements, CPAs can use their software training and in-depth understanding of business processes to not only improve these processes but also potentially detect or prevent fraud for their employers or clients.
Why it Matters
Leveraging their deep expertise and refined skills, CPAs are well-equipped to apply the latest technological innovations tailored for the accounting profession to a wide range of business and financial challenges. From advanced software that streamlines the generation of financial statements and reports to new, more efficient filing processes, CPAs ensure businesses have quick and easy access to critical financial information. Beyond the technology itself, CPAs bring valuable experience in integrating new tools seamlessly into existing business processes, ensuring smooth transitions and maximizing the benefits of each implementation.
Reason #2: CPAs Tend to Have an Eye for the Details
Many accountants possess a detail-oriented personality that resembles the saying, "Finding a needle in a haystack," or, in accountant-speak, the ability to find the missing penny.
CPAs are responsible for ensuring accuracy and avoiding errors of any kind. Even the smallest mistake can cause serious issues for an employer or client, so CPAs who value their reputation always triple-check their work.
CPAs are trained to dig deeper than the surface, always verifying sources and ensuring the accuracy of information. With a keen eye for detail, they not only interpret financial documents but also assess their origins. Their ability to analyze data and uncover the real story behind the numbers is a true mark of their professionalism. Driven by curiosity and professional skepticism, CPAs are committed to ensuring the numbers add up and gathering the full picture needed to solve any financial challenge.
Why it Matters
A CPA’s attention to detail goes far beyond tax and audit work for regulatory purposes. By thoroughly examining the financial records of a business at a granular level, a CPA consultant can uncover critical insights, identify strengths, diagnose inefficiencies, track key performance metrics, and spot hidden challenges that may be limiting growth. This detailed analysis enables CPAs to craft targeted strategies that support business scaling and long-term success. Their meticulous approach ensures that every opportunity for improvement is explored, helping businesses not just meet their goals but thrive.
Reason #3: CPAs Are Required to Abide by Ethical Standards
CPAs are often regarded as an elite group of service professionals, a reputation largely built on their strict ethical standards. Whether someone is born an accountant through family tradition or discovers a love for math and problem-solving through education, character and a moral compass are vital.
Junior CPAs experience this firsthand once they pass the Uniform CPA Exam. Not only is the exam made up of four separate sections, but an applicant must also pass an ethical assessment as part of the application process with their state board of accountancy. In addition to state boards, CPAs must adhere to the principles of the Code of Professional Conduct of the American Institute of Certified Public Accountants. These principles of professional conduct include integrity, public interest, objectivity and independence, and due care.
Why it Matters
The relationships CPAs build with their clients are deep, long-standing, and grounded in trust. The bond that is created when a CPA is entrusted with the inner workings of a business’s strategies, operations, and financial structures often lasts for years. Once that trust is established, it typically takes a major transition, such as a leadership change or business restructuring, for clients to seek new advisory support. Sharing the intricate details of your business with a CPA can feel as personal as sharing medical records with a doctor.
Because business leaders are understandably protective of their company’s operations and future plans, it’s essential to partner with a consultant who demonstrates strong moral integrity and sound judgment. When you engage a trusted CPA as a business consultant, you can be confident you are placing your business’s success in capable, ethical hands.
Reason #4: CPAs are Experts in Business Processes and Internal Control Environments
When supporting a client, a CPA/consultant must develop a deep understanding of the business’s processes to identify operational risks and uncover opportunities for improvement. A CPA thoroughly examines key areas such as the control environment, risk management practices, information systems, and the methods the business uses to monitor and evaluate its internal controls.
To build this understanding, a CPA/consultant often conducts process walkthroughs with key personnel, observing operations firsthand. Through these interactions, the consultant analyzes the specific processes under review and gains valuable insights into the procedures followed by team members, the systems that drive the business, and the overall flow of information throughout the organization. This detailed perspective allows consultants to offer targeted, practical recommendations that strengthen operations and drive strategic growth.
Why it Matters
Over time, knowledge accumulates into expertise. After working on similar engagements for various clients, the CPA builds a foundation of best practices. They can deliver deep value to their clients with observations and recommendations based on their significant experience in business process improvement and efficiency.
Each industry and client may be different and pose different challenges. But a CPA's business acumen obtained through planning audits, learning numerous internal control structures, and observing copious overall business environments is extremely valuable and challenging to come by with just a general consultant.
CPAs Make Excellent Business Consultants
CPAs combine technical expertise, attention to detail, strong ethics, and business process knowledge to deliver exceptional consulting value. Their rigorous training and deep experience make them trusted advisors who can help businesses solve problems, drive growth, and improve operations. If you want a consultant who understands both the numbers and the bigger picture, a CPA is a smart choice.
