In Pursuit of Profit
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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.
What about your accounting platform? Is it keeping pace with business needs? Does it provide the kind of functionality that your business needs to take that next step (whatever it may be)? Does it offer sufficient automation to streamline human efforts?
The reality is that the companies that need accounting help the most typically aren’t even aware that they need help. If you’re not sure how your accounting staff and systems are working together to deliver on key accounting functions, here are some red flags to keep an eye out for: 3/23/2023 Do We Need a Chart of Accounts?
We’ll break down what a COA is and why you need one, give you some pointers on how to create a COA, provide an example of a chart of accounts for you, and give you some helpful reminders to be aware of as you create your own COA. Let’s get started talking about accounting chart of accounts fundamentals:
What is Growth?
For our firm in the early days, growth was not a given. In fact, we didn’t really plan to grow at all. Growth was much different in those early days. But because we had a very talented consultant group, we were able to land quite a bit of business and our team would get full. Unfortunately, at that point you have two choices – add to the team and grow organically or slowly lose market share as clients go elsewhere because you’re too busy. Now, 20 years later growth means somethings completely different. In today’s world growth for us means geographic expansion across the US. It is a very carefully planned strategy that we work very hard to execute. But our definition of growth may not be your definition of growth.
What is your recourse if you cannot remedy performance issues? How do you set up future hires or service providers for success to avoid these kinds of issues in the future?
We’ll cover these topics in our guide to accounting management:
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?
Other times they are more internally motivated, looking for ways to improve and standardize the handling of their financial data to facilitate growth.
Either way, many businesses come to us looking for a set of generic standard accounting policies and procedures that they can just copy. We understand the rationale here. Why reinvent the wheel if you can just take what someone else is already using it and tweak it to fit your company’s needs? And in all honesty, there is nothing wrong with modifying an already existing manual if you know why your business needs formalized accounting policies. However, simply creating accounting policies based on someone else’s business practices without an understanding of why you are doing it and what kind of outcome you are looking for is not the right strategy. The pandemic forced most companies to go remote for what was originally anticipated to be a 2-4 week stint. Over two years later, many companies still have remote employees, at least to some degree. Hybrid working has become the new normal and small business owners continue to struggle with the added challenges of how to manage remote workers. While office-based businesses have largely adapted to managing a remote workforce, other types of small businesses continue to wrestle with the increased demands of location-divided staff. Communication challenges, technology barriers, and access to key information remain difficult among small and mid-sized companies trying to learn how to manage remote teams virtually. If this describes your business, our guide to managing remote workers will give you the tools needed to be successful in this new era: There is no doubt the US workforce landscape continues to experience significant changes. The business challenges of the last few years have caused many companies to rethink how they can best execute their operating plans. With more and more companies outsourcing their accounting functions, there are a few important things to keep in mind to ensure a beneficial outcome. |
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2/19/2024