In Pursuit of Profit
Read our expert article below or sign up to get articles sent to your inbox.
Sometimes we have people ask us, “If I’m outsourcing my bookkeeping/accounting to an accounting firm, how do I know if my business is a priority to that company?” The chances are that if you’re asking this, you’ve felt like your business wasn’t the most important client in your accounting company’s portfolio of clients.
If you feel like your accounting company isn’t prioritizing your needs, you might be right!
The speed at which AI is being introduced into our everyday lives is head spinning! Recent discussions of using AI in the accounting field are all over the map. Some say it’s a huge time saver, while others say it’s potentially disastrous (some will even spout both opinions in the same sentence). Since the industry seems so conflicted about this hot topic, let’s explore the potential advantages and possible pitfalls of using AI in accounting.
Family businesses are a true gem! They are integral to the soul of our country and touch so many people’s lives in a way that’s unlike any other type of business. And, according to the US Chamber of Commerce, they also play a big role in our country’s financial infrastructure employing 63% of the workforce and generating 57% of America’s GDP. Of course, most family businesses are not nearly as large as the ones that have made it big over the years (like Ford, Chick Fil-A, Dell, Aldi, and Walmart). But, nonetheless, family-run businesses are still essential to our local communities, and always will be. That’s why we are particularly passionate about helping family businesses succeed! We understand that in family-run companies there are a lot of challenges that must be overcome to find success, and we want to offer the resources that help them along the way.
Today we’re going to be addressing some of those challenges through a financial lens by looking at the top accounting-related obstacles for family businesses and discussing ways to address them.
Similarly, the beginning of the year brings excitement for business planning. Business leaders are filled with optimism over the idea of starting out the year right by getting their financial house in order so they can streamline and improve to avoid the pain points they dealt with in the year prior. But, then just like the people who decide they’re going to start working out and buy a treadmill only to let it collect dust, mangers and executives fall back into the same habits of “business as usual.”
So, what can you do to prepare yourself for the wave of turnover that may be coming?
When they hear about this trend most employers will go into “fix it” mode and ask what they can do to keep their accountants from bolting soon. Unfortunately, at this point there’s probably very little that can be done to keep them long-term. If the year-end bonus they just got wasn’t enough persuasion, any sort of incentive you throw at them is likely just going to delay the inevitable. (Plus, the quality of work they do and passion they bring to the role is only going to suffer further if they already have one foot out the door.) Instead, your best bet is to get ready for what’s coming next. Take the steps now to be prepared in case your accountant leaves so that you’re not scrambling during tax season to find and onboard someone new.
Maturity in business acumen comes from knowing what to prioritize for the greatest return. Whether you are handling it in-house or outsourcing your accounting activities, knowing where to devote limited resources is crucial for good decision making.
But how do you know where to start? What’s the most critical thing that absolutely needs to be done first? What will offer significant benefits down the road when more resources become available? And what would be nice to do eventually, but isn’t essential? And what should you avoid doing entirely?
Obviously, there’s not a single right answer to these questions because every organization has different business needs. However, there’s a framework that you can use to make these kinds of decisions, regardless of individual circumstances, so you know what to do now, soon, later, and never.
Companies that post salary ranges may choose to do so voluntarily, in the name of equity and transparency, or be required to do so by law. The idea is that by sharing salary bands job applicants are given a range of earnings to expect, eliminating the disparity that can occur when some groups of candidates are less likely to negotiate for a higher salary. Salary ranges should promote fairness and ensure employees are compensated appropriately for the value they bring to their employer.
So, why are employers and job seekers alike in an uproar about salary ranges? Let’s look at what has gone wrong and how both employers and job seekers can respond to position themselves well in today’s job market.
However, employers can do their part to reduce the accounting exodus by recognizing the warning signs of accountant burnout and taking the right steps to find help. Companies that prioritize the needs of their accounting team can not only help keep accountants in the pipeline, but also increase their own revenue and profitability.
Find out what kind of red flags to be on the lookout for that indicate accounting team burnout, as well as how you can offer your accountants the support they need to thrive in their roles.