Difference between a tax agent and a financial controller/CFO

Most small/medium businesses will have a tax agent or external accountant but many do not see the need to hire or retain a Financial Controller/Chief Financial Officer. In fact many do not understand the different roles.

Generally speaking a tax agent is visited only a few times a year and their primary function is to prepare or review accounts in order to lodge appropriate tax returns. Any business advice they can give is limited by the lack of a close operating relationship and knowledge about your business. Additionally they are dealing with historical records so there is no room to improve on what has already occurred.

A Financial Controller/CFO, on the other hand usually looks at 4 different areas of your business:

1. Accounting - ensures that accurate information is available for reporting analysis and statutory compliance. Often working with the tax agent in this area to set up and maintain your accounting system, conduct company secretarial matters, as well as managing and advising book keepers or accounting staff.
2. Financial - ensures visibility of current financial position through financial statements and analysis, management reporting, job costing, budgeting, cash flow forecasting and an annual audit.
3. Operational - aims to achieve best practice through lean and efficient operations that support growth or expansion. This is achieved by setting internal controls, establishing systems and processes, writing standard operating procedures, depicting job functions and responsibilities, conducting contractual audits.
4. Strategic - aims to maximise your business value through business planning, identifying and setting financial strategies and policies, risk assessment and management, implementing performance measures and benchmarking.

All successful businesses look forward not backward, yes we have to learn from past mistakes but improvement is only available in the future and the best way to achieve continual learning and improvement is to surround yourself with the appropriate talent. Investing in the right Financial Controller/CFO will pay dividends as they will get the financial and operational fundamentals right for growth.

Is the world black and white, or many shades of grey?

This was another interesting question posed on LinkedIn. Is the world black or white, is there right or wrong, or many shades of grey?

We must remember that the colour we "see" is determined by our individual perspective (education, religion, gender, age etc) so can there ever be only black and white?

True acceptance and co-operation can only be achieved when we accept that there are no absolutes. Stephen Covey explores an interesting concept in his 7 Habits of Highly Effective People where habit 5 is "seek first to understand, then be understood".

We don't necessarily have to agree with another persons viewpoint but if we seek first to understand who knows what opportunities may open up.

Going out of our way to view the world in as many colours as possible is the only way to achieve continual learning and advancement, the alternative is to stagnate.

Have you ever been thrown under a bus by a boss or colleague?

I recently answered a question posed on LinkedIn about whether you had ever been thrown under a bus by a boss or colleague, interesting question that I thought I would explore here.

In my career, I have been "thrown under a bus" by a number of bosses and colleagues, for various reasons. Some have been confident in my skills and experience and wanted to see how I would handle myself when challenged to leave my comfort zone, and sadly others have wanted to see me fail for no other reason than I was viewed as a threat.

In all instances (sometimes there was no choice) I have taken the challenge and viewed it as an opportunity to stretch myself and learn new skills. I have not always achieved to my own personal standards of success but have never "failed" as the experience has always given me something to take forward to the next opportunity.

For those colleagues who were inspired by what they saw as guaranteed failure I have had the satisfaction of being able to move forward in my career, developing a reputation as someone who is not afraid of adversity, someone who may not know everything but can work out how to find the answers, someone who achieves results.

I would actually recommend that occassionally we choose to throw ourselves under the bus for no other reason than to take away the safety net and force ourselves to think outside the box. Adversity builds character - when we have to stretch ourselves and search deep inside we can achieve amazing things, sending us forward with renewed confidence. Life, especially your career, should be about continual learning, and fear can be a brilliant motivator!