Pearl of Wisdom: It's so simple.

One of the things I truly enjoy about what i do is that I meet with intelligent, capable, and personable people. Daily.


Yesterday I interviewed an experienced financial professional that was coming off a difficult mandate with a company that was going through a restructuring. He said:


"It's so simple. When a company's financial systems don't work, it is hard to see where the problems are. And once you clean it up, it is usually too late.


In all my experience, I have never seen a company in financial difficulty that had the information they needed to make good business decisions."


Lessons Learned:

- Implement a financial system properly, the first time.
- If you have problems with your financial system, fix them before it's too late.



It really is so simple.

For all you Federal Budget Junkies (2010 version)

Here is a list of Budget updates I received this morning.

I'm going to take the weekend to look at them (they help me sleep), but there may be gold in here... Happy Budget reading.

Fuller Landau

McCarthy Tetrault

RSM Richter Chamberland

Osler, Hoskin & Harcourt

Ernst & Young

If you have others you would like to add to the list, let me know.

Happy Reading.

Recruiters: Should your connections be viewable?

Recruiters: Should your connections be viewable? - http://bit.ly/ac54dD

Follow this link for an intersting discussion on LinkedIn about whether recruiters should allow others to see their connections.

Growing Businesses and the Accounting Function

A Visionary Entrepreneur has the talent to build an amazing business from scratch, while overcoming multiple obstacles along the way. Many visionaries do not give enough attention to the accounting function as they grow their business into a successful enterprise.

A small business as it grows needs to ensure that it manages its cash - accrual accounting and month end closes are not critical - focusing on building your business is.

As a small business becomes a big business, it is time to stop treating the accounting function as a necessary evil or as a means to an end, but as a critical and crucial part of your business.

Successful businesses need accurate and timely information from their accounting department that will allow them to make appropriate and profitable business decisions. Receiving incomplete and possibly inaccurate accounting information 45 days after month-end does not benefit the business.

As companies grow, they classically underhire in their accounting department. Thinking that they are saving money, they are delaying the inevitable.

Process. Procedures. Controls.

Companies that have not focused on these three words while they were growing had better start. These three words are the basis of accounting for larger companies. These three words will provide managers and owners with accurate, reliable and relevant information to be able to make appropriate, timely and profitable decisions.

If you find yourself in the situation as I described, do not despair. Your accounting department can deliver. You need to you put in place a plan to quickly to remedy the current situation.

How?

While many companies believe that hiring people to fix an accounting department is the right approach, it may not be the first step to take.

From my experience, when a company needs to fix its accounting department, the first step to take is to bring in a team of accounting consultants to put in process, procedures and controls. This can be very effective in ensuring the growth of their company. Companies that fix this problem first, and then hire the right people for their department, are in a much better situation.

The challenge of being a Visionary continues as your business grows. Building an effective and efficient accounting department will allow you to have the information necessary to continue being that successful Visionary.

Founderitis

foun-der-i-tis [fown-der-eye-tis]

- noun
an entrepreneur that has grown a business from startup, facing insurmountable odds, that cannot understand that the world has changed around him and that he needs to face up to the reality that if things don't change, the business will die.

Last week I interviewed an executive that is currently looking for a new opportunity. Since he left his previous employer, he has been subject to a number of consulting mandates where the businesses were paralyzed by founderitis. I thank him for sharing this term with me.

Is there a cure for founderitis?

In many cases, the cure requires a founder to realize that they have founderitis. Most often with founderitis, the disease will not let them realize that they have it.

This is because most founders believe that they can fix their business problems. They've fixed problems before - They can fix them again. They feel that outsiders don't know their business like they do, so they cannot really help.

A major symptom of founderitis is the need to be in control. For many entrepreneurs, their business defines them to such a great extent that they cannot believe (or do not want to believe) that their business can do better without their omnipotent control.

So, they live their lives trying to own 100% of a pond (or puddle) as opposed to a lesser but significant portion of a lake (or an ocean).

There is a cure - it requires going through the realization that others may be able to help them achieve their goals. It also requires building a team of management and advisors, or even a board of advisors, to be able to see clearly and come up with a strategy to continue to grow and thrive.

Most successful long-term entrepreneurs have surrounded themselves with management and advisors to allow them to achieve the success they have worked so hard for.

Network for Work

This past year and a half has seen an economic downturn that has affected almost everyone in the business world. No one has been more directly affected then those that are currently unemployed.

I have had numerous conversations recently with highly qualified people finding themselves in this situation. Many of them are rebuilding their network after years of neglect (but let's call it 'lack of nurturing').

If there was one thing that they should have done differently while they were employed, it was to keep their network alive and nurtured. If they did that, they would be in a better position today to find their next opportunity, or they would be possibly working today.

Recommendation: If you are employed, continue to build and nurture your network.

The Hottest Opportunity in Accounting?

Being that I speak to a lot of people in accounting, I continue to get asked "what is the best opportunity in accounting today".

There are a few now. Treasury is hot. So is Accounts Receivable and Collections. This shouldn't be a surprise, especially in the era of "Cash is King".

However, one area that continues to be hot, and is at an ideal time to enter into, is Starting your own accounting practice.

While this area is not for everyone, I highly recommend you read this article if you are considering (or would potentially consider) starting your own practice.

If you feel that this could be an opportunity for you, please feel free to contact me directly.

Have a successful day....
Samuel