by Scott M. Lindsay - Northwest Public Power Association

Accounting & Finance
The best accountants run a tight ship, analyze
and interpret company data, and then, most
importantly, play a key role in making strategic
recommendations geared at solving problems and
improving financial results.
If you have a good budget, continue to
Level IV.
Level IV – Analyzes financial data
Accountants spend a ton of time in
the deadline-driven world of daily
transactions and reporting, and many
have a reasonably successful budgeting
system, but a Level IV accountant
takes it up a notch by being a successful
analyst. Analyzing financial information
is determining what metrics are
most meaningful to the company; in
other words, not just reporting the
numbers, but interpreting them. Most
accountants say they “don’t have the
time” to do this. Is that really the
12 NWPPA Bulletin August 2009
problem? Or is it an issue of priorities?
Or is it because the accountant’s boss
doesn’t require or care about this information?
It is definitely something to
think about. Let’s assume the accountant
has the time and that developing
expectations for financial performance
is of value. Then how is it done?
A savvy accountant will implement
a simple, concise report that provides
meaningful metrics to management and
owners. These measurements should do
more than calculate the actual metric
for the company; they also compare a
metric to a goal or expected value.
This simple comparison seems like
something that would be easy to do,
but it hinges on the company knowing
the goal for each metric. In turn, this
means the Level IV accountant needs
to work with others in the company to
develop the goal or the expectation.
This does not happen nearly as often
as it should and we have already identified
the barrier that Level III accountants
most commonly identify: not
enough time.
Level V – Implements strategy
Let’s state this very simply: a
Level V accountant makes you money.
The best accountants run a tight
ship, analyze and interpret company
data, and then, most importantly, play
a key role in making strategic recommendations
geared at solving problems
and improving financial results. This is
more than analysis and explanations.
This is more than pointing out the
problems or company weaknesses.
What owners and top management
need are implemented solutions and
strategies that solve the problems and
take advantage of opportunities.
Accountants have unique skills
that, if put to use, can make the company
more profitable. Most consider
reducing expenses to be the obvious
skill, and that is most certainly a strategy
that involves the accountant’s
financial knowledge; but there are
many other opportunities to make sure
you are taking advantage of tax laws,
new business opportunities are being
reviewed for feasibility, strategic planning
is monitored, and many more
such areas of financial management are
being proactively pursued for the
future success of the business.
Level V cool — I hope your
accountant is there, and if so, it probably
means the company is Level V
successful! NWPPA
Rick Betts, Trent Martin, and Julie
Desimone work at Moss Adams LLP,
Certified Public Accountants in Portland,
Ore. They are all members of the practices
utility and energy services group.
For more information about Moss
Adams, please contact Martin or
Desimone at (800) 820-4476.