A CFO’s role has changed to include more responsibility over HR.
As finance has become crucial to your company’s strategic advantage in business, a CFO’s role and responsibilities have changed to include human resources.
The global accounting software market is anticipated to reach USD $20,408 million by 2026 according to a recent Fortune Business Insights report.
What does the growth of the accounting technology market mean for your business? What trends in accounting tech should you be watching?
I got curious about what is trending in accounting tech, and, as always, I had to share what I found with you.
CFO turnover this year has been a major hurdle for companies navigating an unpredictable COVID-19 world. Some companies are promoting from within to fill the finance chief seat but outsourcing a CFO instead of an internal hire is more than a stopgap measure—it is a strategic solution.
Many assume that promoting from within to fill the CFO seat will save precious time on onboarding and building trust within the company. Time spent in the fold is valuable, no doubt, but thinking this way puts a premium on how things have been done at your company versus how business needs to be done in the future.
Your next CFO should be an outsourced CFO because it is better for your business.
It probably won’t happen today or tomorrow, but at some point, you’ll leave your company. Ideally, you’ll walk away wealthy—or at least wealthier than you are right now—ready to dive into retirement, the launch of your next business, the beginning of your career as an investor, or whatever the next stage of your life holds.
But exits don’t always happen the way we hope and dream they will. There are unavoidable crises, downturns, and other economic realities to contend with. Companies fail; in fact, fewer than half of small businesses in the US survive beyond a decade.
It sounds like an easy win. You take $200,000 from an investor right when you need it, with minimal back-and-forth negotiation and no debt obligations or loss of equity in the present.
Sure, there are some strings attached. In exchange for their financing, the investor has agreed to some percentage of ownership in your company at an unspecified future date. But you don’t need to worry about that now—you just secured seed funding without giving up any control in your company or borrowing money you may not be able to pay back.
There are things to love or hate about the latest executive order of a payroll tax holiday, such as:
Believe it or not, 2020 is more than halfway over. It feels like we’ve lived through a decade since 2019.
Can you remember what you were doing around this time last year? What were your major priorities and projects back then?
Around this time last year, I was helping one of our clients prepare for conversations with investors. We were working diligently to get the company’s financial statements in order, ensure the books were accurate and up to date, develop the fundraising pitch, and create projections for the next 18 months. Everyone was feeling optimistic. The business had momentum, a strong value proposition, and the attention of several potential sources of capital.
Like so much of life these days, the Paycheck Protection Program (PPP) is unprecedented. Never before has so much money been loaned out to so many businesses so quickly. Equally astonishing is the fact that the government has agreed to forgive the loans for qualifying borrowers.
However, unprecedented also means untested, uncertain—and perhaps unfeasible. It’s no surprise that a program this big and this hastily rolled out has had numerous issues, limitations, and controversies.
As COVID-19 continues to spread around the world, U.S. businesses have received historic government relief in exchange for its participation in the life-saving emergency shelter-in-place and social distancing orders of state governors.
As those same governors are lifting emergency stay-at-home orders, enabling non-essential workers to return to the shop floor or office, the need for government relief of business activity has remained a necessity.
Most accountants wouldn’t consider themselves responsible for managing workforce performance. But let’s pause and think about that for a second. When someone is feeling overwhelmed and under-supported at work, there’s almost always a financial factor involved.