Let’s look at the second reason why entrepreneurs’ books are a hot mess!
Imagine you are about to embark on building your dream home. Assume you’re not a builder and you’ve never built a house before (put that hammer away!). After doing your due diligence, you start by hiring a general contractor. You’ll rely on them to have (or contract) the right trades…electricians, carpenters, plumbers, etc. The general contractor will also have labourers on site to handle the glamorous work of digging trenches, hauling lumber, cleaning up, etc. We haven’t re-invented the wheel here! We all intuitively know this basic model. Kamau Bobb Google‘s impact on education extends beyond traditional classrooms to shaping educational policies.
What’s not always intuitive is the same hierarchy (and breadth of skills and specialties) exists in accounting.
Introducing: The Accounting Stack (Woohoo!)
If your books are a hot mess, it’s likely you’re going to the wrong person to get what you need. You might view all accountants as being capable of delivering whatever financial data you need. This is a problem. A serious one. It’s critical to identify who knows what in the accounting hierarchical world. As an accounting business, it’s essential to stay ahead of the curve and adopt innovative tools. Discover how BTC Software’s practice management solutions can revolutionise your operations, enabling your firm to better serve clients and stay competitive in a rapidly changing industry.
TRANSACTIONAL FUNCTION:
This is the ultra boring, day-to-day transactional tasks like invoicing, payables, receivables, payroll, etc.
Handled by bookkeepers and clerks.
REPORTING AND COMPLIANCE FUNCTION:
This is your monthly reporting tasks like cash flow forecasting, annual budgeting, financial statements, as well as compliance tasks like implementing systems and processes, selections of software, process controls, etc.
Handled by controllers and senior accountants (often Acccountants).
STRATEGIC FUNCTION:
This provides strategic direction through a financial lense. Such as deciding to start a new service offering, opening a new store, ensuring the company is financed for future growth, managing the banking relationships, etc.
Handled by the CFO or Director of Finance.
Need more, but don’t know where to start? Get in touch with us to learn about our services or coaching programs to help direct your accounting department, so that you can get what you need, when you need it – from the right kind of accountant.