Archive | Blog

How to Improve Your Resume

The concept of resumes might seem difficult to grasp at times. After all, you’re set with the task of conveying all of your life’s accomplishments and skills in a single sheet of paper. Creating a good resume is an essential skill necessary to be successful in the workforce. A good resume can be the difference between getting your dream job or not. In this blog, we will demonstrate some tips on how to improve your resume.

How to Improve Your Resume

Make Your Resume Stand Out

Recruiters have the task of going through countless number of resumes, so it is crucial that yours stands out from the pack. This doesn’t mean to have exotic fonts or arrangements, but it should convey your accomplishments and skills in an order that could be best perceived by the reader. Here are some tips that could help make your resume stand out:

Tailor Your Resume

Tailor your resume to the specific role you are applying for. Make sure that you are emphasizing the skills and experiences that are most relevant for the position you look to apply to. Completely read and understand the job you are applying for and make it clear in your resume why you are applying.

Use Keywords

Most companies and recruiters now use keywords to find the qualified candidates. If you don’t use the correct ones, your resume can be left out by the electronic applicant tracking systems.  To help you find the best keywords, try looking into online job postings and the company website.

Proofread

Proofread it and ensure that there are absolutely no errors Read it line by line, read it backwards and read it aloud until you are absolutely sure that there are no errors. Mistakes whether big or small can have a significant impact on the recruiter’s decision. A simple mistake can make it seem like you are not actually “Detail Oriented” or that you are a “Perfectionist” and can lead to the difference between getting a call back or not.

Be Professional

Use a profesional format that is easy to read. Recruiters and hiring managers can see straight through the fancy fonts and colors. They want to get straight to the point so make sure you have a profesional format that is easy to read and pleasing to the eye.

Bullet Points

Use bullet points not paragraphs. Be aware that recruiters have a lot of other resumes to look at, so make your information concise and to the point, nobody wants to read a long paragraph that could have easily been summarized in a bullet point or two.

Quantify

Quantify your previous accomplishments by using metrics. Don’t just put your previous job responsibilities but explain how well you did in them. For example: All Basketball players have the responsibility to put the ball in the basket, but the things that really differentiate them is how often they do that and how good they are at doing that. Use numbers to show how you excelled in your previous jobs and how it can lead to success in this new job.

Have a Cover Letter

Add a cover letter to set yourself apart. Almost half of recruiters said specifically that a cover letter can set your resume apart from the others. Cover letter let you show your personality and build a rapport. The only time you should not write a cover letter is when the job you’re applying to specifically says not too. In any other scenario it can provide you with an extra edge, so why not spend a little extra time on the cover letter if it may mean you increase your likelihood of getting a callback.

Hyperlink

If the application is online, add hyperlinks to your online profiles. This will make it easier for them by linking your profiles such as your LinkedIn, your personal website, or your blog. However, if the resume is online, making it a hyperlink can immediately send them to the designated website within seconds. Make sure you also tune up your websites before that.

Things That Shouldn’t Be On Your Resume

When you upload a resume, you are competing with numerous other people for the hiring managers attention. While there are many ways to make your resume more noticeable, there are certainly ways to make it look inferior. There are various steps and measures that you can take to prevent your resume from appearing substandard.

Here are several key things you shouldn’t put on your resume, including the following:

Also, don’t post in a Word document. The formatting may be different depending on how views it. Save your resume as a PDF.

What Recruiters Look For

According to a poll made by CareerBuilder, recruiters said would make them pay more attention to certain resumes :

  • Tailored to their position: 61%
  • Cover letter: 49%
  • Addressed to the hiring manager or recruiter by name: 26%
  • Hyperlinks to the applicant’s online portfolio, blog, or website: 21%

Instead of applying for multiple companies, interviewing for hours, and risking not even finding the right job, Short|LYST is the one stop shop for connecting you to our network of employers. Our team of experienced HR and financial executives take the financial and time burden off of both the candidates and the employers. All the candidate has to do is become a member and interview for Short|LYST then be vetted and listed. Learn more about Short|LYST here.

How to Improve your Resume

Share this:
0

Business Restructuring Process | How to Restructure Successfully During COVID-19

Business Restructuring Process COVID-19 business process restructuring blog photo

We are now experiencing the worst global pandemic in 100 years. COVID-19 hit the U.S.A. in Q1 2020 and businesses were forced to either slow down, shut down, or change the process of how they do business. Now is a critical time to understand the business restructuring process.

Most businesses, large and small, have been affected in some way, mostly negatively. On top of that, the price of oil came crashing down once again. This brought a parallel downturn in the oil and gas industry causing companies to consider a business restructuring process.

Since 2015 business restructurings were at an all-time low.

Just a few months ago businesses were booming, companies were having record years in 2018 and 2019, low-interest rates, access to capital, strong GDP, unemployment low, decent companies had good margins and cash was flowing. If you would have asked me in December 2019, what are the chances of the world economy to come very close to a complete shut down in a few weeks? I would have told you close to zero. The business restructuring process was far less common.

When margins are high, clients are knocking on the door and cash is flowing it is easy to forget about margins, working capital, and cash flow forecasting. There was a false sense of security in 2018 and 2019. We spoke to several business owners of large and small successful business and they did not have time to talk to us about managing cash flow, KPIs, and margins. If their books closed 3 weeks after the end of the month and on a cash basis, they were fine with that. In good times is easy to forget about the basics and having a backup plan in case you have that “rainy day”. Guess what, now we are all living that “rainy day”, but it is not just one day. It is likely to be a downturn for the entire year of 2020. In addition, very few companies had a backup plan for completely shutting down operations for 2 weeks, 2 months or more.

This was never supposed to happen.

Businesses Push for Survival 

We have seen some businesses push to partially open and survive. We have seen a few businesses take the punch well because they had positive net working capital and cash in the bank. But we have seen many businesses struggle with barely making payroll and meeting its debt obligations.

NET WORKING CAPITAL = the company’s ability to meet its short-term obligations.

More than ever managing net working capital has become very important.

Business Restructuring Process

Throughout my career, I have helped companies successfully restructure their business because they were impacted by an event that caused them to be in financial distress. As a recent example, there were layoffs and a division of a company was shut down. The remainder of the company was profitable, smaller, and had a future and was able to survive.

How to Successfully Restructure your Business During a Global Pandemic

This blog is intended for all business owners out there, so we all have a chance of survival. Over my 30 years as a professional, I have witnessed countless financially distressed businesses go from struggling to surviving from a successful restructuring process.

The term restructuring can have several different meanings and can be used in different ways.

Restructuring can mean…

  • changing the management team
  • entering a different industry
  • shuffling people around within an organization
  • reorganization of your debt and operations out-of-court
  • filing for bankruptcy and reorganizing with court protection

Restructuring your Capital Structure and Debt

In a case where a company was impacted by an unforeseen event such as a global pandemic (COVID-19), the business was a healthy business in a healthy market, and from no fault of their own, they have now faced a situation of financial distress because of lost revenue, and debt on their balance sheet.

If it were not for COVID-19, restructuring would have not been needed. Restructuring can happen out-of-court, that means without filing for bankruptcy protection, or through a court process where a company files for bankruptcy protection.

Business Restructuring Process| Out-of-Court Restructuring 

Without Filing for Bankruptcy | Out-of-Court Restructuring Process

Out-of-Court Restructuring is where a company attempts to reorganize its debt with creditors without filing for bankruptcy. In order for a business restructuring process to be successful, a Financial Advisor is hired to assist the business owners to restructure their debt with secured and unsecured creditors. This could also include raising capital to recapitalize your business.

In order for an out-of-court restructuring to be successful, it means that everyone wants to play ball. The parties involved are willing and able to enter into discussions to restructure the debtor’s liabilities and support the company with its future business plan. It only takes one major third party to object and this kills the opportunity for the out of court restructuring process to be successful. Also, keep in mind that in an out-of-court restructuring the business has no protection and can be hurt by aggressive creditors.

Business Restructuring Process | In-Court Restructuring

Filing for Bankruptcy | In-Court Restructuring Process

In-Court process, filing for bankruptcy; this is a formal process where the law provides the debtors with statutory protections. Assuming your business is a viable candidate for a Chapter 11 bankruptcy, your business will have the time and opportunity to negotiate and reorganize your debt and capital structure. The company will present a plan of reorganization, a business plan, that shows the court and creditors how the business will survive as a viable business after the bankruptcy.

A Second Chance at Survival for Businesses

The bankruptcy process is long, expensive, and takes a lot out of an organization. But if done correctly it gives the business a second chance to survive and probably with less debt. In bankruptcy, you will be dealing with things you have never dealt with before such as:

  • Bankruptcy attorneys
  • A court and judge
  • Possibly a creditors committee
  • Financial advisors
  • Strict reporting requirements and deadlines for reporting
  • Possibly a Trustee

The Beauty of the Bankruptcy Process

The beauty of the bankruptcy process, specifically Chapter 11, is that if the process and filing are well planned out there is a very good chance of success and emerging the other side with a strong company producing cash flow.

Kicking the Can Down the Road | Hardworking, proud, and out of control?

Common attributes of CEO’s, business owners/entrepreneurs are hardworking, proud, and they have always been in control. This is the first time for many business owners and CEOs not to be in control, it is the first time for feeling financial distress. So many of them “kick the can down the road” and avoid what their balance sheet and P&L are telling them.

The Debt is Not Going Away

Yes, it is true that many banks are being “kind” during the COVID-19 process, and maybe providing waivers for strict financial covenants related to the debt. But the reality is the debt is not going away, and there is still a lot of uncertainty around what is normal and will be the “new norm” for business.

Reclaim Control | Business Restructuring Process

Now more than ever it is critical that your financial statements are on an accrual basis. A cash-basis balance sheet will NOT tell you what your real net working capital is, and you will only be lying to yourself.

Take Corrective Action

Corrective action – talk to a financial professional to determine if you might need to have your company restructured. Your financial professional is NOT the CPA that prepares your tax returns.

A Trusted Advisor

We can provide an analysis and recommendation and walk you through the restructuring process, out-of-court, or in-court through a bankruptcy process. Give us a call and find out how we can become your trusted financial advisor through this difficult time.

Download the free External Analysis whitepaper that guides you through overcoming obstacles and preparing how your company is going to react to external factors.

Business Restructuring Process | How to Restructure Successfully During COVID-19

Share this:
2

What the Current Hiring Process Costs

It’s hard for companies to realize how much they are actually spending when it comes to hiring a new employee. Once they decide it’s time to pursue a new worker, a lot of resources are used to find the perfect candidate for the job. Finding the perfect candidate within a vast number of people might be very difficult, therefore costing a significant amount of time and money to the company. There are certain steps a company can take in order to minimize these costs. In this blog, we will walk through what the current hiring process costs.

What the Current Hiring Process CostsContemplating Profits and Cash Flow

Hiring and recruiting a new employee costs the company a lot more than just their salary. Recruitment costs are very often overlooked. Recruiters spend countless number of hours trying to find the perfect candidate for their needs, leading them to go through extensive research on countless number of candidates. This research, however, is not free. Finding the perfect candidate comes with a price. Let’s look at what the current hiring process costs:

Suppose you pay your recruiter $75 an hour and he looks through 100 resumes, each for 20 seconds:

$75 x (20s x 100 Resumes) 

Let’s assume that 10% of those applicants now get an interview lasting an average of 1.5 hours:

$75 x (20s x 100 resumes) + (10 x 1.5 hours)

On top of that, lets presume 10% of those interviews make it to a second round:

$75 x [(20s x 100 resumes) + (10 x 1.5 hours) + (1 x 1.5 hours)]

That’s a total of 17 hours and for $75 and hour you ended up paying your recruiter:

17 x $75 = $1,275!

That is not even adding the cost that you spent advertising for the job posting, drug tests, background pre-screenings or assessment tests!

As you can see, hiring a worker is clearly not free, it can come with various unexpected costs that sometimes can go unnoticed. Companies should take proper measures to minimize these costs because as you can see above, each recruiting process can cost a hefty amount.

This poll was administered online in the U.S. by Harris Interactive©

Impact of a Bad Hire

Even after spending countless amounts of time and money finding the perfect candidate, companies still run the risk of a bad hire. Maybe they needed to fill the job quickly, maybe they didn’t have enough talent intelligence, or maybe it was just an honest mistake. But hiring the wrong person can have significant effects on the company’s performance. Hiring a person that does not provide value to the company can be critical hit to the company’s development. Not only does it waste the company money, but it can also have a negative influence on company culture. Be cautious when it comes to hiring a new employee and take proper measures to properly decide on the best candidate.

Tips to Improve Your Recruiting Process

Once you realize it is time for your company to hire someone, it’s a chore finding the correct person for the job. From the marketing to the interviews, it can be very important how you go about this process. Or you risk missing out on great potential candidates when you do things imperfectly. Here are some tips to improve your recruiting process:

Have an Accurate Job Description

Thoroughly define what exactly are the duties and responsibilities you are looking for and add these to the job description. Make sure they are as clear and accurate as possible. Try to have a job posting that will attract qualified candidates and discourages others. This will help you save a considerable amount of time in the screening process.

Advertise Your Job

Do some research on what type of job posting resources will work the best for your company, whether its posting online, in a school placement office, or through an employment agency. The way you find you candidates can have a remarkable difference on the quality of your applicants.

Compare Applicants

Think of what your ideal candidate will look like. Then, have a strict screening process that would weed out applicants that would not be suitable for your company. After this, rank your remaining candidates in order from most to least suitable. You can also choose to have an assessment test that would measure their abilities in an actual job-like situation.

Show Them Why They Should Work For You 

Once you have chosen your ideal candidate, now it’s your turn to sell him on the job. Remember that the strongest candidates will always have more opportunities. Hiring is a two-way street, so make sure you convince your candidate by communicating a strong vision and mission for your business with enthusiasm and sincerity.

Bypass the Current Hiring Process

It’s 2020.  The Strategic CFO created Short|LYST due to the current environment and demand. Unemployment is at an all time high due to the global pandemic and many have lost their job. Candidates are faced with the traditional outlets of posting resumes on countless online sites and never getting a response. This is a black hole in most cases…There had to be some revolution to the hiring process, but the only changes in the past couple of decades are search firms, headhunters, and recruiters. That’s why we created Short|LYST. It allows employers to bypass the current hiring process and cut the current hiring process at least in half.

Instead of screening hundreds of candidates, interviewing dozens more, and risking not even finding the right candidate, Short|LYST does that all for you. Our team of experienced HR and financial executives take the financial and time burden off from the employers. All the employer has to do is pick and choose which recommended candidate they want to take forward. Learn more about Short|LYST here.

What the Current Hiring Process Costs


what the current hiring process costs

what the current hiring process costs

Share this:
0

Strategy for Managing Cash

managing cash

Does your company have a strategy for managing cash

Many companies have established procedures for purchasing materials, collecting customer payments, and paying vendors.

But often people either do not communicate these procedures or simply don’t follow them consistently.

Even when everyone is aware of and follows the established protocol, your system may be flawed. Before we show an example, you need to know how to manage cash flow

Know How to Manage Cash Flow

We all know that cash is king – liquidity is essential for survival. Many entrepreneurs only know how much is in the bank, but they don’t understand how much cash they actually have. So, how does one manage cash flow?

First, you need tools. 

Here are a few tools that can help a company manage cash flow:



Manage and Work Your Operating Cycle

Then you need to manage and work your operating cycle. Your operating cycle is “how many days it takes to turn purchases of inventory into cash receipts from its eventual sale”. It indicates true liquidity – how quickly you can turn your assets into cash. Calculate how long your operating cycle is using the following formula:

Operating cycle = DIO + DSO – DPO

Watch Your Expenses

Watch your expenses carefully. If you do not have an eye on SG&A and procedures on what can be purchased, then you risk racking up unnecessary overhead. Think about too much inventory, unnecessary equipment replacements, extreme marketing budgets, etc. 

Use Cash Wisely

Use your cash wisely. Always be thinking about will this add value to my company? when spending your valuable cash. If you will not see a return on your investment, then consider spending the cash elsewhere. 

Collect Quicker

Another method to manage (and improve) cash flow is to collect quicker. This is a great method to use if you are in a cash crunch and can only make small improvements. For example, there is a $10 million company that collected their accounts receivable every 365 days. They had a lot of cash tied up. If they improved their DSO 5 days, that would be an extra $137,000 of free cash flow

Example of Strategy for Managing Cash

Let’s look at an example of a strategy for managing cash flow. Imagine that Company A has 120 days of inventory on hand. They collect receivables in 60 days. And they pay payables within 30 days.  Even assuming that this is their established cash management strategy and everyone follows it, Company A will still find itself in a cash crunch. This is because of the disparity of time that cash is tied up in inventory and receivables versus the speed with which it pays its payables.

So what can Company A do to free up cash?  Here’s a link to an article that talks about how to develop a strategy for managing cash and techniques to improve cash flow.


 

Strategy for Managing Cash, How to Manage Cash Flow

Share this:
2

What Happens When Companies Don’t Have Internal Controls

While we never aim to scare our clients and readers, we have a huge plethora of war stories about what happens when companies don’t have internal controls. Just in my 18+ years of experience, I’ve compiled all the crazy stories for you today. 

What Happens When Companies Don’t Have Internal Controls 

So, what happens when companies don’t have internal controls? They open themselves up for theft, embezzlement, and liability. If there are no controls over what’s going on inside, then there is no control over cash flow, profitability, etc. It also “gives permission” to your team to do as they please and when it pleases them.  They may or may not be making decisions in the best interest of the company.  But without internal controls, they are likely less careful with the decisions they make.  Have you ever noticed how easy it is for a child to spend their parent’s money, but if it was their own money they are less likely to spend frivolously?

War Stories | What Happens When There Are NO Internal Controls 

In my experience, I have gathered so many war stories on what happens when there are no internal controls. Read about some of my most unforgettable below.  

My Most Trusted Accountant and Advisor 

Many years ago, while I was part of the audit team, I had a client who had the same accountant for 20+ years – we’ll call her Sheila. She has been with the company since it opened its doors and was the owner’s most trusted confidant and advisor. Sheila was in complete control of the receivable and payables.  There was no oversight over Sheila’s position. When I started to look at their accounting records, there were several red flags…

Sheila was very defensive and abrasive when I came into the office and during the review phase of the engagement.  She mentioned several times it was okay for me to work remotely.  She wanted me to sit outside of her office, even though her office was large and had a meeting table and several chairs. Intuitively, I knew something was off with her.

I also noticed that the company cut thousands of checks every month to different companies. Sheila cut them and signed them herself.  The business owner trusted Sheila and gave her access to manage the bank account and accounting records.

The biggest red flag was discovered during the audit of the transactions.  There were several inconsistencies with who the checks were being written to and how they were recorded in the accounting system.  It appeared Sheila would have the checks payable to herself and immediately go back into the system and change the name to a made-up vendor.  After months of due diligence and investigation, it was discovered that she had stolen at least a quarter of a million dollars in just the last 10 years of her employment. While this hurts the owner, the owner gave less trust at face value and implemented internal controls to regain trust in accountants.

Creating Checks and Balances with Internal Controls

In another instance, the Chief Operating Officer of a company approved several supplier invoices.  The accounts payable department processed the invoice and paid the supplier without further questioning. It took at least a year before the company learned that the COO created this false company, approved the invoices and received payments for personal gain.

Therefore, it is critical to have internal control at all levels of the company with different teams in place to create the check and balances it needs.  Internal control would the purchasing group validate the supplier, approve the purchase order before submitting the order to accounts payable.  Generally, operations would have received a receiving document once goods/services have been provided with a signature of the person receiving the goods/services.  Accounts payable would receive the final invoice and match it against the approved purchase order and receiving document.

 

What I Learned About Internal Controls 

There are several things I learned about internal controls when I was in audit and now even as a CFO 

Trust Your Gut 

If your gut is telling you something is wrong or off, it is worth investigating. When I have followed my gut, I have either found something wrong or found comfort that everything is okay. But those few times I did not trust my intuition, I missed steps to prevent fraud, etc.  

Never Do Anything Without Oversight 

As a CFO, business owner, entrepreneur, and accountant, I have learned that no one is too high not to have oversight. If I cut all the checks and sign them, that leaves it all up to me. Thankfully, I know myself and I would never do anything criminal! However, not all people are like me. There are, unfortunately, individuals that are motivated by rationalization, pressure, and/or opportunity. Oversight helps protect all parties – even yourself.  

So that is what happens when companies don’t have internal controls – lack of control.

what happens when companies don't have internal controls, When Companies Don't Have Internal Controls

what happens when companies don't have internal controls, When Companies Don't Have Internal Controls

Share this:
0

When You Know It’s the Right Hire

Hiring is an important aspect in a company’s development. When you know it’s the right hire, it can benefit the company in countless number of ways, such as saving money, increasing productivity, and improving employee morale. However, when done incorrectly, it can damage the company significantly. A company should always be able to determine whether the person they hired is truly beneficial to their organization. Below you can find some tips that can help you know whether your new hire is a correct fit for your company or not.

Is it time to hire?

Is it time to hire? Do you feel theres a need for an extra hand in the workplace? Or maybe you need a fresh mind to help your creativity? If the answer is yes, then it is time to hire. If you are constantly feeling burnt out and frequently running out of creative ideas, then extra help is crucial. Without extra help, the quality of your work may hinder and that could essentially lead to lower company performance.

Adding a new member to your team can have a significant impact. Hiring a new employee can help increase efficiency, performance, and creativity. By hiring a new employee, you decrease project work time, bring in new ideas, and get a brand-new perspective.

If it’s time for you to discover a new job, consider the time associated with job searching. Our team has created a platform called Short|LYST that connects employers to employees that we would hire ourselves… all in one place Learn more about Short|LYST here.

When You Know It’s the Right Hire

A new hire should be an asset to the company. They should provide value and bring in more than they cost. Finding the right hire might be difficult, but once you find the right hire, it will be all worth it.

A new hire should always have the correct skillset, be reliable, and produce quality work. A new employee should be comfortable in the job and everyone in the office should be comfortable with him. A recent hire should be able to provide quality work and should be adaptable to various circumstances and scenarios. He should be easy to train as well as being comfortable to learning new things at a constant pace.

According to Forbes Magazine, the following 15 traits indicate an ideal employee:

When You Know It's the Right Hire

  1. Action oriented
  2. Intelligent
  3. Ambitious
  4. Autonomous
  5. Leader
  6. Fits with Culture
  7. Upbeat
  8. Confident
  9. Successful
  10. Honest
  11. Detail-Oriented
  12. Modest
  13. Hard-Working
  14. Marketable
  15. Passionate

When you know it’s the right hire, you should feel at peace. There shouldn’t be any conflict in your mind. The hiring text books will tell you that there’s a science to hiring. But you have to realize that you are a human dealing with humans. At some point, you have to trust your gut feeling.

Signs It’s NOT the Right Hire

You can tell in the first few weeks of employment whether the new hire is a good fit. Even if they have a superb skillset or amazing abilities, sometimes it could be their mindset that could be unsuitable for the company. Their approach to the job and their character can be a huge predictor whether someone is fit for the company or not.

Here are some signs that he is not the correct candidate:

  • Work for their own benefit and not for the company’s.
  • Show Minimum Effort
  • Unreliable when needed
  • “High Maintenance”
  • Arrogant
  • Do only “good enough”
  • Unambitious
  • Stagnant

When You Know It's the Right HireTips for Hiring the Correct Person

Here are some tips for hiring the correct person.

Define what you’re looking for  Think of what the ideal candidate would look like. Completely define what duties and responsibilities you are looking for and add these to the job descriptions.

Attract a large pool of applicants Attract the maximum number of applicants that your time and budget allow. Research what type of job posting resources would work best for your company and use those.

Compare Applicants Rank the qualified candidates in order from most to least suitable. Implement various levels of screening in order to waste less time with under-qualified applicants. After you narrow down your list of applicants, create an assessment test that measures how they would perform in an actual job situation

Sell your ideal candidate. Once you have your ideal candidate, sell him the job. Remember that hiring someone is a two-way street. Communicate your strong vision and mission for your business with enthusiasm and sincerity. The strongest candidates will always have more opportunities, so make sure you convince the candidate that this job is the one he should be taking.

Hiring the Right Person

Start your hiring process with Short|LYST. Short|LYST offers candidates that we would hire ourselves for various accounting and financial positions. Each candidate is screened, interviewed, vetted, and recommended for hire. Interested? Learn more about Short|LYST here. When You Know It's the Right Hire


When You Know It's the Right Hire

When You Know It's the Right Hire

Share this:
0

When to Outsource or Why Outsource at All?

As a financial leader of your organization, it’s important that you understand how your time works and what you are spending your time on. In today’s blog, we’re taking a look at when to outsource accounting or specific tasks and services and why outsource at all. Before we go into when, first, let’s understand, what is outsourcing? Many of you have heard the term, but don’t really know what it means.

Outsourcing is simply delegating and paying someone outside of your organization to do a service for you that you cannot do or do not have time to do.

Examining Your Daily Routines

For example, think about your daily routines. Think about what you currently do. The list may add up quickly if you’re like me and wear many hats.

Put a star next to the things that you struggle to find time to do in the first place.

In your personal lives, it could be mowing the lawn or changing your car’s oil or cooking yourself.

For example, I find myself as a business owner operating a franchise struggling to find time to really prep and cook dinner each night. So what we do often is go out and pick up food – essentially paying someone to cook our food for us. We could either dine there or take it home.

Time Value

It’s all about time value. Are you spending your time on what you or your company values most?

When examining your daily routines, do you catch yourself saying “I don’t have time…”?

“I don’t have time to mow the lawn.”

“There’s no time to clean my house.”

“I don’t have time to close the books because I’m out there running my business.”

Whatever those time consuming tasks are, it may be worth outsourcing to another person or agency. 

By freeing up your time as a CFO, you can reallocate that time to more important tasks – such as being your CEO’s trusted advisor. Learn how to become the trusted advisor your CEO needs.

When to Outsource Accounting

For example, you might have to hire a bookkeeper in your organization for them to come out and enter the transactions on a daily basis. For me, that’s important to outsource because I need to be thinking at a higher level as a Controller/CFO – not entering transactions. There will always be someone less expensive to do that. 

So really when we say we don’t have time, it is because of one of several reasons. We don’t want to spend our time on something else if someone else can do it for cheaper (and if it energizes them more). Plus, it may be time to start outsourcing accounting when you want to:

  • Make more money for you
  • Bring you more value
  • Do what you enjoy doing more

For example, entering transactions for month close is dry work and it wears on me. But I love coaching leaders how to be more effective in their roles and make their decisions more impactful. If I’m bombarded with transactions, I cannot coach leaders – which is more valuable to me and the bottom line.

On a personal note, when I do not have to cook dinner, I have an opportunity to spend more time with my kids. It also frees up my time to help my kids with homework and build memories with them. I can also read a book for personal growth or enjoyment. There’s so many opportunities out there for you to actually do things that you actually enjoy. 

Outsourcing accounting is just one area where you may add value to your company. Continue to do things that add value or free up your time so that you may add value. Click here to download our guide on how to be a trusted advisor to your CEO to help them improve your company’s value.

When to Outsource, When to Outsource Accounting, Why Outsource

Why Outsource At All

One of the top reasons why companies outsource at all is that they may be more efficient. When I outsource, I am hiring someone that might be more knowledgeable. If I am a business owner who does not know how to record certain transactions, then consider the time it will take to learn that skill (and the time you are not spending on improving profits and cash flow). Even if you wanted to implement Quickbooks so that you can start recording transactions (a one-time set up), it may be worth handing that off to someone more knowledgeable in Quickbooks so that you can focus on other things you are more knowledgeable in. 

Those are things you consider when to start outsourcing.

The goal is to create more time, more energy, and free you up to do something that can potentially make you more money.

Examples When Considering Outsourcing

To further explain the need to outsource, it’s important to consider roles outside of the accounting and finance departments.

If you are a good sales person for your organization, then you don’t want to spend your time behind a desk all day trying to enter your transactions. If you don’t have a lot of transactions, then that’s a perfect sign that you need to get out there and start making those sales for increased transactions for your business to actually record.

Outsourcing is a Key to Growing

I think that outsourcing is a key to growing. It is no different from a leader wanting to delegate the tasks that…

  • You just don’t have any time to do
  • You need others to do so that you can focus on what you are great at doing from a very high level

Now, at The Strategic CFO, we have several ways for you to tap into or start outsourcing individuals so that you can actually build on your business.

Consulting

We have accounting managers, controllers, and CFOs that are ready to deploy and add real value where it’s not currently being optimized. In our consulting practice, we work in several capacities, whether it be an Interim CFO role, financial and operational reporting, mergers and acquisitions, pre-audit preparation, etc. Click here to learn more about our consulting practice.

For example, your accounting manager, controller, or CFO may

  • Not exist yet (brand new hire)
  • Be on maternity leave
  • Take 3 months off to travel through Europe (I wish!)
  • Need extra help because your company is going through an audit for the very first time

Life happens regardless of what you plan for. That’s why we’re here to step in when you need it. We will come in and help you with getting the helping hand you need to be more efficient with your current team. Need hiring and training? We do that too. These are all different reasons why you may need to outsource. We are here as a boutique firm to help you.

When to Outsource, When to Outsource Accounting, Why Outsource

Coaching Workshops

There are also opportunities for you to come in and take workshops at our office, in an online setting, or at your office. For example, you can learn about what your leadership style is. Are you a Type A person that can’t just let go of doing the little tasks? By learning about yourself, you start to outsource or delegate what you are not strong at and focus on what you are great at. As a result, you can continue to grow the business.

We offer a variety of workshops to…

Your CEO needs an advisor they can trust. Learn what they expect from their CFO and how to become the trusted advisor your CEO needs in this whitepaper.

When to Outsource, When to Outsource Accounting, Why Outsource

When to Outsource, When to Outsource Accounting, Why Outsource

Share this:
0



See Dates