While outsourcing overseas used to just be a cost-saving measure, many accounting firms are now facing labor shortages that are forcing them to take this step out of necessity, not of their own choosing. ​The Washington Post declared that “The remote revolution could lead to offshoring Armageddon” and though that is likely an exaggeration, it demonstrates how desperate many employers are these days to find personnel to do the work that needs to get done. 

CPA firms, large employers, and companies with complicated ongoing financial needs are in a pinch. They need skilled employees to do the work that keeps their businesses running but with a dearth of qualified candidates available, their options are limited. However, offshoring is not the only solution! It is often a far better option to upskill your existing employees to assist with this work than to send it overseas.

​As a fan of Star Trek, one thing I like to ponder about is the concept of time dimensions. Can you be in two points of time at the same time? For many people, living in a pandemic has made the sensation of time change. Things have simultaneously seemed like they happened long ago and also only yesterday. And, at one point or another we have all thought, “It seems like it was years since I saw you. Wait, it has been years!” But time has more than just social implications. The concept of time is relevant to you professionally as well, especially as an accounting manager or a member of an accounting team.
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To have an effective accounting and finance team, an individual’s time view preference must match their job responsibility. If it is not, your accounting operations may suffer, and your company may experience unnecessary attrition. What do I mean? 

While many companies have faced materials and components shortages leading to stock outs since the start of the pandemic, many other companies have been sitting on excess inventory due to transportation challenges, shifting consumer patterns, and tightening sales distribution channels.

​Excess inventory occurs when a business holds more stock than is needed to meet their forecasted demand. It can be the result of flawed forecasting, purchasing errors, improper inventory management, or business disruptions. The latter is what many organizations have been dealing with since early-2020. But, regardless of the cause, too much inventory can cause both financial and operational obstacles.

If your company is carrying an abundance of inventory, it is important to act quickly to get it off your books and out of your warehouses. Use this guide to understand why excess inventory can be a business killer, and what to do about it!

When a company is undergoing a significant shift, like a big cultural change or a change of ownership, a financial assessment can give them a comprehensive picture of where they are financially to aid in their strategic planning. A business financial assessment helps with decision-making related to everything from short-term cash flow management to long-term vision-setting.
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Over the last year and a half many companies have brought in consulting accountants and fractional CFOs to assess their current financial position. Let’s take a closer look at what a financial assessment includes and who is best poised to conduct one.

Business leaders asking themselves the question “Do I need a CFO or Controller?” are typically in a good position – one where growth has necessitated that they bring in financial leadership.

At this stage, companies are feeling the limitations of their existing accounting personnel and are evaluating what their next move should be to keep the company moving forward. But knowing whether to hire a Controller or a CFO is a big decision, because, contrary to popular opinion, the roles are distinctly different.

​The last decade has ushered in a digital revolution across all business areas. However, many businesses are still dragging their feet when it comes to automating their accounting and finance activities. In fact, 58% of finance teams surveyed indicated that they do not feel their finance back office is “sufficiently automated.”

​Despite a plethora of tools and platforms available to help streamline these critical business areas, it seems many businesses are stuck in the past, relying on manual processes for their daily accounting functions. But organizations can use automation to drive profitability if they understand its benefits and can identify areas where AI will help them the most. 

Written in conjunction with our partners at CFO Selections

​A cash flow shortage is the number one reason why small businesses fail, but even mid-sized and large companies need smart cash flow management to survive and thrive.
Insufficient cash forces companies to make difficult decisions about who is going to get paid and when. Unfortunately, this can lead to vendors and suppliers being paid late, being overdue on rent, even employees waiting on paychecks.

It is not an exaggeration to say that cash is the lifeblood of any business. Not having enough money to pay for expenses can erode business credibility, which leads to:

• Suppliers refusing to do business
• Credit card companies increasing interest rates
• Vendors tightening payment terms
• Landlords evicting tenants
• Employees leaving

Ultimately, a company’s potential will be stifled if there is not enough capital to invest in the assets that facilitate growth, and its very existence can be threatened as well.
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So, are you ready to manage cash flow for the coming year? 

Are you paying for compliance accounting or advisory accounting? Do you know?

Compliance accounting is straightforward – it deals with day-to-day accounting, reporting, and tax preparation. But what about advisory accounting?
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The Intuit Tax Council defines accounting advisory services as, “Taking client challenges and applying strategies to create opportunities in service to their growth.” Accounting advisory interweaves technology, relationships, communication, and strategy to provide companies the fuel needed for profitable growth. 

As an accounting recruiting firm and financial services provider, we work with businesses everyday who ask, “Should we hire or outsource our accounting needs?”

This question is especially important for companies in the startup phase because they likely have significant cash flow concerns to consider. However, startups may also have other unique characteristics that make this question more challenging to answer, such as:

• Interest from outside investors
• Financing considerations
• New market development
• High growth market demands
• Scalability challenges
• Patenting needs
• Family ownership

​While every business will have their own unique needs and challenges, it is generally best for a startup to outsource their accounting activities initially and then hire internally as their needs change. Where does that shift happen? 

“Finance” is a broad term every business leader has heard, but it can mean many different things.
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Businesses have banking relationships, investments they need to track, fundraising and financial analysis needs. Corporate Financial Planning and Analysis (FP&A), the work performed by Financial Analysts, is a complex specialty within Finance that all successful businesses need in some degree. There are multiple FP&A components of which every business requires a different combination. This complexity makes hiring to satisfy your FP&A needs difficult. To make matters harder, many accounting and FP&A functions can overlap.

So how do you know if you need to hire a dedicated Financial Analyst or a hybrid accountant? It helps to first understand the components of Corporate FP&A, the value each adds, and how much time each activity should take.