CORE STRENGTH: A CPA's Value: Strengthening Boards.

• Author: Fowler, Mark H.

Over the last several years, every aspect has changed in our businesses, careers, personal and public lives As businesses adapt and course-correct, an important activity is to search for new and more effective resources to advise, forecast, plan and implement the most appropriate actions.

CPAs are one of the most valuable service providers helping clients find resources they need. A powerful component in business is the board of directors; CPAs can help bring a stronger board structure for all stakeholders. This article is based on a panel discussion I moderated on behalf of the CalCPA's LA Chapter Management of an Accounting Practice (MAP) Committee that discussed how CPAs can be more valuable to clients by helping with their boards. Along with myself (MHF). panelists included:

* Gaurav Malhotra, CPA (GM): audit partner at Lucas, Horsfall, Murphy & Pindroh, LLP

* Jeffrey Munson (JM): regional vice president of American Business Bank & board member of Private Directors Association

* Jennifer Post, J.D. (JP): managing partner of Thomson, Coburn, LLP, Los Angeles

* Dipak Shah (DS): Investment Banker & Board Member of Private Directors Association

Boards, Board Members & Future Needs

JM: "Private companies fall into a few buckets, tightly family owned and controlled. The lifestyle business supports the needs of the family; other businesses may have bigger aspirations to grow to scale organically or through acquisition, including other growth initiatives, like seeking to go international and more oriented to future planning. There is a third kind: those with professional boards and generally backed by private equity, positioned to scale rapidly and with professional investors looking to safeguard the growth of their investments. There is a lot of discipline, rigor and very distinct functionality.

"The kind of problem we see is those companies that have neither thought about the board, nor given any reflective idea about who should be on the board or what should be done."

JM: "How advisory is your CPA? If you are getting your CPA financials for November in December, it's a purely transactional relationship; then that's one thing. If your CPA is a true 'trusted adviser' with the company, then that's a different relationship. I think what the board should be doing is knowingly bringing wisdom to the board. That wisdom can include a financial base from a CPA, for instance. More importantly, the CPA can bring value in a situation a vast number of...