In Pursuit of Profit
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Why? Well, it is an irrefutable fact that there was a drop in the number of accounting degrees being obtained between 1998 and 2008, which caused a ripple that is still being felt across many organizations. On top of that, the Great Resignation made finding senior-level accounting and finance professionals more difficult because of the surge in career changes and retirements.
But what is more controversial is the possibility that employers themselves may be to blame for the tight hiring market in accounting and finance. Yes, we said it. Those of you in search of a unicorn candidate may be partially to blame for the sentiment that there is no one qualified enough for the role you are looking to fill. Let us explain…
If the economy slows down significantly enough for a long enough period of time, we will be in a recession. But regardless of what we call it, the economy is slowing down. We know this because current economic indicators show that:
These numbers reflect an economy that is surely slowing, which means that businesses must be prepared to react accordingly by preserving cash flow. The key in determining how to respond will be in understanding what this slowdown is going to look like for business activity.
In some cases, holding onto the role internally means hiring an in-house accountant, but at many small businesses, the alternative is simply tasking other employees with these kinds of functions. And, to no one’s surprise, the lucky person who gets the accounting work added to their to-do list tends to be the business owner.
However, even in light of these kinds of trends, there is still a fallacy that small businesses have less to worry about than their larger corporate counterparts. This mistaken belief comes from the assumption that big corporations have a bigger target on their backs because they have more of the things that are worth stealing (sensitive information, customer data, money, and so on). But what this line of thinking fails to consider is that larger companies also typically have more safeguards in place to protect their assets. Big corporations typically have not only the technology needed to be more buttoned up, but also the policies, procedures, and personnel in place to better protect themselves. As a result, cybercriminals are increasingly targeting smaller organizations. In fact, in his book "Fire Doesn't Innovate," Kip Boyle reveals that a ransomware attack on a small business these days costs the organization an average of $4M.
As cyber security threats continue to evolve businesses and their employees must be on guard at all times. Organizations of all sizes, but especially small-to-medium sized businesses (SMBs), need to be able to identify today’s most common cyber scams and equip their staff to prevent them!
Growing up I dreamed about experiencing Mt. Rainier up close and personal. So, it is no wonder that as I came to enjoy hiking in my adulthood the idea of conquering her crept into my mind. Summiting was something I thought about for several years. However, with a limited window to attempt the climb, a very small chance of summiting and the high cost, I ultimately put that dream away.
Then I remembered an article I read in 2008 about a group of friends who hiked around the mountain on one of the country’s most notable long-distance trails: The Wonderland Trail. This trail had stuck in my mind as a challenging way to experience Mt. Rainier that was far more feasible than summiting. So, early last year I decided to use the excuse of a milestone birthday to set out to hike the trail with three friends. Now, the Wonderland Trail is a 93-mile circumnavigation of the mountain that includes 46,000 feet of gross elevation gain/loss; a large undertaking! 9/28/2022 The Bookkeeping Cleanup Checklist
Having clean books lays a foundation for smart decision-making and sound strategic planning. It is also crucial when applying for financing, pitching to investors, and keeping partners informed. A company that does not represent themselves truthfully with their financial data, even if it is an accidental misrepresentation, can miss out on growth opportunities or be faced with fines or penalties as a result. But what happens when the books fall into disarray despite your best efforts to keep them accurate and close them in a timely manner?
As a business owner you need to understand that no company is immune from the possibility for fraud. Every day businesses become victims of theft, resulting in not only lost cash but also sensitive information and business data. Realizing this is paramount. Fraud does happen and it can happen to you.
And while we yearn for a return to normal, we’re constantly challenged with answering the question, “What is normal now?”
The practice of accounting has not been immune to these challenges. During the pandemic, most businesses were forced to rethink their basic accounting processes and structures just to survive. While remote work and part-time bookkeeping has been a long been a staple of many small businesses, many larger enterprises have been forced to re-think how to execute their missions in light of mass shutdowns. But what is normal going forward? What, if any, of the revelations and lessons of the past 2+ years can and should be brought forward and adapted as the new normal?
In recent months we have solidly come to understand that for better or worse the typical office work model we were once accustomed to has been permanently changed and we may never see the corporate world fully return to the office full-time. And yet, even as we begin to look forward to 2023, this question of whether accounting work will move back into the office still remains.
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11/7/2022