Translating numbers into business decisions
Lesson 1 of 4 in Client Advisory & Stakeholder Communication · 22 minutes
CPAs increasingly serve as advisors. Strong advisory work requires translating financial information into actionable business advice. This lesson covers the skill.
What you'll learn
- Translate financial reports into business insight
- Identify the question behind the question
- Frame analyses for non-finance audiences
- Recommend specific actions
From the lesson
Compliance accounting (preparing taxes, audit, GAAP statements) is the foundation of CPA work. But the highest-value CPA work is advisory — helping clients make business decisions based on financial information. The skill: translating numbers into decisions. This lesson covers the patterns IEP accountants need.
1. The compliance vs. advisory distinction
Compliance work: • Tax returns. • Audit and review. • GAAP-compliant financial statements. • Bookkeeping. • Standardized; required by law/regulation. • Pricing: hourly or by deliverable.
Advisory work: • Strategic decisions. • Investment analysis. • M&A advice. • Cash flow planning. • Risk management. • Tax planning (forward-looking). •…