Guide for CPAs to Deliver Value While Reporting Non-Financial Databy Lunna Walker Accountant
The constant evolution and changes in tax reforms and accounting platform are bound to create a stir with numerous questions. It is not a secret that the accounting landscape is shifting, bringing about new challenges and opportunities for individuals and business owners. Also, Blockchain and Artificial Intelligence are the talks of the town, and CPAs must keep an eye open for these upcoming trends in 2018. Use of technology, with the latest version of accounting applications, is crucial and a huge help. QuickBooks in the cloud is a smart way to track cash flow and stay on top of finances from anywhere, anytime.
The new practice of bringing in fresh talent into business and the need for reliable information for stakeholders has increased in importance. It presents a challenge and an opportunity for accounting professionals as many skills, especially of quantifying data, are in huge demand. The need of the hour is to understand that, while the financial data in numbers show the progress of a company, the non-financial data and the efficient management of resources is what drives that result.
Below is a list of few pointers that CPAs must consider before non-financial data reporting.
What matters to stakeholders.
Every business has a different set of requirements, so it is essential to understand what stakeholders need. Whether it is client information, compliance reports, or return on business development projects. Figure out what they need and make the non-financial information understandable accordingly. Use your accounting application service, like QuickBooks Cloud Hosting, to keep track of all things essential.
Do not lose focus of critical data.
While dealing with daily operations, cash flow and keeping a company running, it is easy to forget the non-financial aspects of the business which are equally important. It is the CPAs job to keep this in conversation and help the management team of the company to run the business better. This increases your value to the company as well.
Setting up goals.
A major issue with non-financial data is that there are no numbers to set a target for growth. Work with your team and other teams together to set up goals that can be integrated with final decision making. This may seem like a problematic task at first, but the approach will get the process started to attain the right balance between financial and non-financial tasks.
Communication with stakeholders.
It is very important to create a channel of communication with stakeholders of the company so that you can convey your findings directly to the decision makers. Your data analysis is important, and they will know your value to the management only if you are proactive in delivering it to them. Leverage your background and experience to create non-financial reports and present to valuable members of the organization.
The accounting landscape is evolving with technology developments, which brings out numerous challenges and opportunities for accounting professionals. Non-financial reporting is an area that may not have caught your attention before, but utilizing it can certainly help in your way forward.
Created on Sep 5th 2018 05:23. Viewed 386 times.