A guest post from our partners at CFO Selections.

With an increased focus on financial planning and analysis (FP&A) in recent years, many companies have begun asking, “Do accountants do financial planning?”

For cash-strapped startups and small businesses the temptation to simply add to their accountant’s workload is strong. However, this is not a wise decision. While overloading any one role presents problems on its own, entrusting accountants with FP&A poses its own unique risks.

The differences between accounting and FP&A necessitate that it be handled by separate personnel with unique skillsets and performance objectives. Understanding what FP&A entails and what is at stake can help organizations make smart decisions about who should handle this critical responsibility.

High employee turnover can be bad luck, but more often it hints at an underlying problem. That problem may be rushed hiring, a mismatch between the job description and the demands of the role, a poor fit for the role, or inadequate retention incentives.

If you are going through accountants more than every few years, it is time to ask yourself what your company can be doing differently in defining the role, finding the right candidate, supporting the new hire, and retaining an individual in the role.

The 2020 pandemic caused significant change across the business landscape. CEOs and business owners were put to the test as they decided how to strategically navigate the effects of the pandemic. As a result, many business owners have realized certain aspects of their company’s financial operations may shift indefinitely.

As the practice manager for an accounting firm, I’ve been in a unique position throughout the pandemic because I’ve witnessed our client pool expand to include companies that would never have considered using a third-party accounting company to handle their accounting needs before. However, these business owners were put in a difficult position when in-person work was shut down and some key employees had to take time off for sickness or family obligations. Some lost their accountants to virtual school responsibilities, while others were forced to upgrade their desktop accounting systems to cloud-based versions so employees could collaborate remotely.

As a result, business owners have now experienced first-hand that their bookkeeping and accounting work can be performed remotely without having to sacrifice quality and efficiency. In other words, the same value can be realized whether day to day accounting is being performed remotely or onsite.

Let’s look at what business owners are telling our accountants, and what this means for the future of accounting and finance. 

What is a fractional accountant and when do you need one?

​It may sound cliched, but fractional accountants are whatever you need whenever you need them.

Fractional accountants are the “a la carte” version of accounting professionals. These financial professionals can be hired to do any number of financial functions, handling everything from financial reporting and cash flow management to tax preparation and internal controls. They can do part-time work, project work, and interim assignments while working on-site, off-site, or a combination of the two. Essentially, a fractional accountant can provide as much or as little work as you need.
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Most often though, fractional accountants are brought in to assist existing accounting teams, work on special projects, and supplement software systems. 

We see a variety of circumstances in our practice at ASP, whether it be outsourced consulting needs, or an organization growing and needing to consider a fulltime resource. Our recruiting efforts are responding to those fulltime needs daily. The pandemic has shifted the business landscape significantly, making strong financial leadership universally important.
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Small companies that previously had their CEO at the helm of financial operations have realized that they need a fulltime controller to oversee their accounting operations and staff. With the increased demands of operating during financially uncertain times, CEOs need to focus on their core role of running the company overall (pivoting and shifting as needed), while entrusting another professional with the financial management of the company.

As a result, hiring a fulltime controller is no longer optional these days with the following business trends occurring:

Your accountant just gave notice, what do you do now?

Hopefully, your accountant gave you more than the obligatory two weeks, but regardless of what the timeframe looks like, the steps are the same:

1. Try to ascertain why they are leaving
2. Work on hiring a replacement
3. Handoff information
4. Part on good terms
5. Remove system access

​Time is of the essence in this situation, especially if it coincides with a closing period or tax season, so you should get started immediately!

When looking to hire management-level financial roles, it is crucial to understand the current recruiting trends that will affect your ability to hire the right candidates. So, what are we seeing so far this year?

Today’s employment market is like nothing we have seen before. Accounting and finance professionals continue to be in high demand despite unemployment figures being up in other professions, but recruiting has changed significantly over the last year. Effective recruiting right now hinges on utilizing digital tools, reimagining job requirements, prioritizing career growth, providing the right employment incentives, fostering a positive workplace culture, and utilizing a professional recruiting firm

Many business owners worry that their accountant may not be up to par. This is especially true when business owners do not have strong financial acumen themselves.

They wonder if their accountant is truly acting with the company’s best interests in mind and whether they have the skillset needed to do the job well. But without significant financial expertise, business owners often do not know what to look for to quell their concerns. Instead, many just focus on the day-to-day needs of the business and hope the financial leadership of their company is being handled effectively. This is a big mistake.

A lack of connection to the company’s financial operations can land a business owner in trouble quickly if an accountant has misrepresented their experience or lacks key financial knowledge. In other instances, an accountant may have all the requisite qualifications, but lacks the work ethic or integrity to do excellent work for their employer. So, how does a business owner know if their accountant is doing a good job? 

​Recruiters play a unique role in the hiring process for accountants and other financial personnel. We are tasked with fulfilling a hiring manager's requirements and are also deeply in touch with the reality of the candidate market. Often there is a gap between the two that we must navigate.
In finance and accounting recruiting, one request we frequently receive is that candidates hold active CPA licenses. This requirement has come from all industries, all size companies, and all positions from staff accountants to CFOs.
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Understandably, most companies desire the best person for their position for various reasons – from wanting the most intelligent person to wanting someone to do their taxes to just wanting someone more trustworthy. But do you need a CPA on your accounting team? 

As business technology continues to get more sophisticated, business owners may wonder if an accounting software can simplify their staffing needs while still providing high-quality bookkeeping and financial reporting. Accounting software companies would have you believe that managing your books is as simple as generating customer invoices, adding receipts for your expenses, and linking your bank accounts. And while software can certainly streamline these day-to-day operational activities, the question still remains, are these types of platforms a true substitute for your in-house or outsourced accountant role?

So, can you replace your accountant with some shiny sleek software?