In Pursuit of Profit
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![]() 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. Most often though, fractional accountants are brought in to assist existing accounting teams, work on special projects, and supplement software systems. ![]() The Association of Certified Fraud Examiners’ Report to the Nations reveals that on average companies lose 5% of their annual revenue to fraud with a median loss per case of $125,000 and an average loss per case of just over $1.5M. The report further elaborates that more than half of businesses never recover any of the lost funds. While only 20% of fraud is reportedly committed by business owners (compared to 41% by individual contributors and 35% by managers), the cost of owner-run fraud schemes cost their businesses 10 times more on average than fraud cases committed by lower-level employees. The average perpetrator of fraudulent crimes has been with the company for 1-5 years and engages in their fraudulent activity for 14 months before being detected. And small businesses typically carry a higher fraud risk than their larger counterparts with twice the rate of billing fraud and payroll fraud and four times the rate of check and payment tampering. No one wants to believe that fraud could be happening at their company, but these statistics tell the true story – fraud is far more widespread than many people think. So, how does this kind of fraud occur and why is the risk of fraud higher this year than previous years? And most importantly, how do you identify fraud and what can you do to prevent it? ![]() 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. 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:
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? 3/22/2021 How to Hire a Financial Controller![]() How do you know if you need to hire a financial controller? A controller is essential when:
A controller can implement internal controls to mitigate financial risk, improve cash flow, and facilitate profitable growth. As a result, hiring a financial controller is a key strategic move, but it hinges on correctly defining the role and seeking out the best candidate. 3/15/2021 Do You Need a CPA?![]() 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. 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? ![]() Nothing sends chills down a business owner's spine, quite like being notified that you are being audited. The worry that you have accidentally overlooked something critical or done something incorrectly can be extremely nerve-wracking. Furthermore, trying to understand why you are being audited can cause business leadership to fret from the very beginning. Even before the audit has begun, the entire process can be confusing and stressful. Preparing for and weathering an audit is a lot of work for business owners that likely have too much on their plates already, especially when the audit is dragging on. Therefore, it is crucial to have an accountant (especially a CPA) or consulting CFO to lean on throughout the audit process, no matter how long it takes. But if your audit seems to be taking longer than it should, it is essential to understand what the hold up is to mitigate your future audit risk. |
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5/18/2021