You can inflate the revenue streams all you want, but when you run out of money, you're done. As a financial officer in the dotcom world, I've learned to accept, where appropriate, greater wiggle room as part of the territory, but you must ultimately implement a business plan that will guide your firm to long-term profitability and viability as a business entity. Deciphering between what is a gray area in accounting rules and what is just plain wrong simply because it is misleading is getting harder and harder to do these days. The pressure on a CFO from the various players is enormous. At dotcom start-ups in particular, all eyes are on an upward trend in revenues.
Profitability is no longer relevant -at least for the moment.
Fortunately for me, my mentor at UMass, Dick Simpson, and my other accounting professors at the Isenberg School gave me an excellent foundation in accounting practice and ethics. They all insisted that it was our responsibility as future CPAs and CFOs to distinguish between right and wrong. After twenty-five years as a financial officer, I continue to take those lessons seriously. I owe it to my investors-and I owe it to myself.