Rule makers have suggested that companies separate “core” revenue-generating activities from investment activities on their financial statements.  While many companies are disconcerted with the direct cash-flow method of accounting, what is most amazing is that 63% of CFO’s haven’t even heard of the proposed changes!  We tend to think that people who rise to the level of CFO would read the financial publications that keep them informed of this type of proposal. However, they aren’t, and this should be of concern to you as a business owner.
     I was recently asked to review a company’s financial strategy.  They presented an elaborate plan to shelter taxes, avoid liability, and segregate ownership.  It was an impressive plan which took into account every financial strategy their CFO had ever learned.  While making small talk after the meeting I mentioned the proposed changes to the financial statements and was met with a blank stare from the CFO.  The CEO and the rest of the meeting participants watched in horror as the CFO sheepishly admitted he knew nothing of the possible changes.
     The point is that you and your CFO need to be informed.  A good piece of advice is to never turn your financial matters over blindly to anyone.  Ask questions, stay informed, and hold your financial advisors accountable.