The new CFO role is more than numbers

What if the biggest threat to accounting isn’t the 150-hour rule, but the profession itself? Low pay, outdated perceptions and lack of mentorship are keeping talent away. Meanwhile, AI is rewriting the CFO’s job description, and fraud is creeping into surprising places. This edition unpacks what’s changing—and why it matters.

Fixing the talent pipeline takes more than 150 hours

Many accountants and thought leaders in the profession blame the 150-hour rule for the shrinking pipeline of future CPAs, but a recent study by the Center for Audit Quality (CAQ) suggests the problem runs much deeper. 

Yes, the extra credit hours are a hurdle, but the biggest deterrents for students are a lack of interest in accounting, low starting salaries and limited career path visibility. Minority students also face challenges like cultural dissatisfaction and fewer mentors. 

The solution, according to Mark Nickerson, CPA/PFS, CMA, is for firms to rethink salary structures, improve industry branding and strengthen diversity, equity and inclusion efforts to attract and retain top talent.

Why this matters: Fewer CPAs means tougher hiring, heavier workloads and slower firm growth. Understanding what's really driving talent shortages helps firms advocate for meaningful change. (The CPA Journal)

For modern CFOs, it's about more than just the numbers

The role of CFO isn't what it used to be. Gone are the days when finance chiefs could simply focus on balance sheets and budgets. Today's CFOs are strategic leaders, tech adopters and risk managers. Adriana Carpenter understands this shift firsthand as the CFO of Emburse, a subscription based expense management solutions company. With a track record that includes steering a company through a successful IPO and leading finance at a high-growth subscription-based business, Carpenter really gets what it takes to be a CFO today. She sat down with The Net Gains to share her take on AI's impact on finance, the challenges of subscription-based revenue models and how to prepare for high-growth milestones. -Janet Berry-Johnson

The role of CFOs has expanded beyond traditional finance functions. How do you see the modern CFO’s responsibilities evolving, especially with the rise of automation and AI?
More and more, we’re seeing the CFO’s role shifting from traditional financial stewardship to one that is both strategic and operational. With the rise of financial technologies and the availability of AI, CFOs must embrace new tools for automation, reporting and data analysis. But it’s not just the finance function using AI; CFOs should partner across the C-suite to understand where and how to invest to best leverage AI in external-facing products. Lastly, as you leverage AI and technology, be mindful of the company’s cybersecurity posture; companies handling large volumes of data may increase the risk of data breaches and other cybersecurity risks. Ensure your company has appropriate data governance and data security protocols in place to safely deploy a holistic AI strategy.

With your experience leading finance in a subscription-based business, what are the biggest financial challenges companies face in this model, and how can CFOs address them?
The advantage of a subscription-based business is its recurring revenue stream. However, understanding the levers that could accelerate or decelerate that revenue stream is critical to ensuring you’re meeting your financial goals. Two key metrics to measure are the cost to acquire new customers and the net expansion rate of your existing customers (is your customer growing with you or shrinking and canceling). You also need to consider cash flow management; you’ll want to establish standard contract parameters to maximize your cash position, such as requiring annual, up-front payment and improving customer retention metrics through longer multi-year contract terms versus terms that are cancellable or month-to-month.

As someone who helped guide a company through a successful IPO, what advice do you have for CFOs preparing for high-growth milestones, whether it’s an IPO, acquisition or major funding round?
From an external market perspective: Know your key differentiators—what makes your company stand apart and how do those differentiators map to financial? Internally, you need to ensure that across all functions, there are consistent processes and systems to support a quarterly cadence of delivery. Each area needs to be prepared: product to deliver committed enhancements, sales to meet its targets, and the finance team to deliver financial results. The whole company needs to learn how to deliver to an external quarterly cadence that is much different from a private company’s annual cadence. Don’t underestimate the amount of investment and preparation it takes across the company holistically to be ready!

Fraud at the zoo: When perks go too far

Ever dreamed of working at a zoo? It's not all free peanuts and animal encounters. A recent episode of the Oh My Fraud podcast shared a wild case of financial misconduct involving executives at the Columbus Zoo who were caught using zoo-owned homes, luxury concert tickets and even a $45,000 RV for personal gain, all while the organization received taxpayer funding. Host Caleb Newquist explained how a mix of entitlement, poor oversight and hidden perks led to indictments and prison time for multiple executives back in 2023.

Why this matters: Misuse of funds isn't just a "big company" problem. Nonprofits and small businesses (including your clients) could be at risk. If something feels off, accountants and bookkeepers are often the first (and best) line of defense. (Oh My Fraud)

Disaster-proof your bookkeeping business: Five warning signs your business isn't ready for a crisis (and what to do about it).

AI pricing power: Blake Oliver, CPA and podcast host, shares how accountants can use AI to boost profits.

What makes you really valuable? Seth Fineberg, an accounting industry editor and strategist, breaks down what separates top-tier accountants from the pack.

Biggest bookkeeping blunders: A TikTok bookkeeper breaks down the bookkeeping mistakes she sees most often.

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Weeks of capacity per employee gained by firms that invest in AI versus those that don't. (Karbon)

Tax gameplan: Tax legislation is coming—could it impact this tax season?

 IRS shake-up: The IRS is losing staff. Good news for taxpayers or a recipe for chaos?

 BOI is back: Courts lift the injunction. What now?

 Fraud watch: Cybercriminals are getting smarter and audit committees need to keep up.

 Tax hacks: Four strategies to help high earners keep more cash

Audit metrics rule withdrawn after industry pushback

The Public Company Accounting Oversight Board (PCAOB) officially withdrew its proposed audit metrics reporting rule, a move hailed as a victory by big accounting firms and the AICPA. Originally designed to increase transparency, the rule would have required firms auditing large public companies to report standardized metrics on audit engagement, experience and workload. Critics—including the Big 4 and Top 10 firms—argued the metrics lacked clear ties to audit quality, could be misrepresented by investors and placed an undue burden on smaller firms, potentially forcing them out of public company audits.

Why this matters: Maintaining audit quality is essential, but we can't ignore compliance costs and unintended market consequences. Firms must stay engaged with policymakers and regulators or risk getting caught off guard by the next wave of rule changes. (CPA Practice Advisor)

The Net Gains is your one-stop shop for fresh, FREE accounting insights. You can reach the newsletter team at thenetgains@mynewsletter.co. We enjoy hearing from you.

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The Net Gains is curated and written by Janet Berry-Johnson and edited by Bianca Prieto.