Your client loves to brag about you. In every meeting with a third party, he/she refers to you as the company’s CFO. I cringe when I hear them say that. I casually tell the banker, vendor, or the other person I’m meeting that I’m a consultant. If they have questions, I’ll answer them.
I’ve never been sued by a client or someone with financial ties to my client. I plan to keep it that way. I don’t sign any agreements in any legal capacity. I don’t make fiduciary decisions. I do nothing administratively that I did in my W-2 life.
That’s why you’re not your client’s CFO. Is this a nitpick? No. Because you are either a contractor, consultant, or coach. And it’s all about protecting you from being sued.
I vividly recall a BKD wanting me to sign a representation along with my CEO after they had completed audit fieldwork early in my consulting career. I said ‘no’ all three times. He was unhappy, and they were forced to do some extra work (I have no idea for that reasoning.) before they could sign off on the audit report. My guiding principle is that I’m nothing more than a guide, not the company’s CFO. That’s the way it should be with your clients.