Does Your Firm’s Board Know Its Role?

Mission, vision, strategies, action plans … they all need to be aligned.

By Steven E. Sacks

The supposed purpose behind a CPA firm creating a board is not to micromanage, design a company logo or address human resource issues. Neither is its role to sit around and smoke Cohiba Esplendido cigars and sip Louis XIII de Remy Martin Grande cognac. This glad-handing, back-slapping culture led to the financial breakdowns in the early 2000s and is possibly still happening today.

MORE: How to Select Your Firm’s Board | Confronting Leadership: Not Such a Bad Thing | New Opportunities for a ‘New Normal’ | Is Trust Elusive? | Working Remotely Shouldn’t Mean Feeling Isolated | How Engaged Are Your Employees? | Managing Difficult Personalities in the Workplace | Set Your Staff on the Right Course
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Why would a firm create a board? In theory, it is designed to build and preserve a firm’s prosperity and longevity, in the same vein as a company board. Each board member should have a thorough handle on the profession and the industries that the firm serves. The board members should understand trends, the competitive challenges, and the effectiveness or lack thereof regarding the firm’s structure and operations.

Posted on June 5, 2020

Steven Sacks

About the Author

Steven Sacks, CPA, CGMA, ABC, has been at the forefront of the accounting profession for 30 years.

He is the author of
"The NEW Fundamentals: Practical Guidance for Today’s Accounting Firms,"
available here from CPA Trendlines.

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His involvement included the development of the first set of consulting standards, the creation of the Accredited in Business Valuation credential, the publication of practice management guides and award-winning newsletters, and addressing business development and organizational management in both the public and private sectors. He has served professional service firms and membership associations through the deliverance of leading-edge conferences, presented to colleges and universities on careers in accounting, and created workshops, webinars, and webcasts on a variety of accounting and consulting topics.

As the CEO and founder of Solutions to Results LLC, Steven assists professional service firms and organizations to solve the challenges of human capital development, workplace culture, and developing effective internal and external communication strategies and techniques. Previously, as executive director of Moore Stephens North America, he served CPA firms with conferences, webinars, workshops, various communication vehicles (including a multi-year, award-winning association newsletter), and a skills database for the development of domestic and international engagement referrals. At the AICPA, he developed strategies and business plans for growing the consulting services membership section; published technical service and practice management guides; participated in the creation of the first set of standards for consulting services; led the creation of the Accredited in Business Valuation credential; developed niche conferences in valuation, litigation support and forensic services; and presented to colleges and universities about CPA consulting careers.

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