Many small business owners are thinking backwards.
Rather than thinking “I need more out of my bookkeeper” they may be better off thinking “I should find a controller or CFO”. This is especially true when your business is experiencing change. During phases such as start-up, growth, expanding into new markets, advertising bursts and economic downturns, having a higher-level, big-picture thinker on your financial team can be crucial to success.
Consider this. When there is something wrong with your car, do you look for someone who knows how to use a wrench? Or do you look for someone who understands the mechanics and diagnostics of your vehicle, who can see signs of potential future issues, who can explain these things to you in a clear manner? Part of this answer depends on how well you understand what may be going on. It’s safer to ask someone to pick up a wrench if you can supervise and direct their task and know how to tell afterward if the job was done properly. If you are less inclined to know what’s going on under the hood, then asking someone to use their wrench can be risky.
Consider the following when building your business’s accounting team:
Your own skills and talents:
- Do you know how to periodically review your bookkeepers work to spot errors, be they honest mistakes or signs of something else?
- Will you have the time to regularly follow through on this review? Or do you find yourself tending to other parts of your business all day long, addressing the needs of your clients, customers, vendors and employees?
- Is the accounting position clear-cut? Will it take little effort on your part to train in someone new when there are staff changes in the accounting department? Would you be able to take over the accounting tasks yourself?
Your vision for your business:
- Do you foresee more change on the horizon? If you expect growth or shifts in your business model, then having a comprehensive, long-term thinker on the team is wise.
- To carry on the analogy, this would be like having your trusted, experienced mechanic check out the three different vehicles you are considering purchasing. Someone who considers questions you may not have thought to ask before you chose which direction to go.
- Do you anticipate the business (and therefore the accounting department) to grow? Getting someone on the team who will ensure consistent, reliable and timely implementation of accounting policies is best considered in advance, before the growing pains set in. This is like checking the fluids and tire pressure before heading out on a trip.
As a small business owner, you probably spend a lot of time thinking about the big picture as well as handling a million little details each day. Think about if your accounting needs are getting the same level of diligence and attention. If they aren’t, it might be time to bring someone on with a bigger tool-belt, to fill the gaps and work alongside you and your current wrench-turner.
Recent Comments