‘Accounting is the language of business’ an adage, Leigh-Anne Pierre, Accounting Outsourcing Assistant Manager underscored during her Aegis Leadership series interview. Leigh Anne revealed the Accounting trends that have developed in the pandemic and advice for small and medium-sized business owners on what the future of accounting can look like.
Getting prepared by getting evaluated
There is an increase in the number of business owners evaluating their businesses. In this economic climate more business owners are gravitating towards selling their ventures or retiring all together. Hence business owners are becoming fully prepared for potential buyers by having their business evaluated.
Another trend Leigh Anne explained was in Accounting Outsourcing and Accounting Outplacements. Accounting Outsourcing refers to outsourcing your accounting department whereas ‘accounting outplacement’ refers to hiring a temporary accounting staff for a specific purpose for a definite period of time. At Aegis Business Solutions, we happily offer both. In recent times, foreign companies with local operations prefer accounting outsourcing but local businesses favour accounting outplacements. With accounting outplacements, business owners receive temporary staff without the associated costs of maintaining permanent staff.
For these small businesses, Leigh- Anne offers her tips:
Accounting Advice for Small Business Owners
- Get your business evaluated. For business owners contemplating selling their business or even merging an evaluation is imperative business evaluations determine the equity value of a business. Doing this beforehand allows you time to increase your business’ value, and improves the approaching negotiation process. For business owners not interested in selling, getting evaluated still presents a host of benefits.
- Have proper systems of internal control. For example, when writing cheques attach it to a cheque payment voucher, write a receipt for cash sales, and write an invoice for credit sales.
- Ensure a proper document management process. At the end of the month compile the cheque payment vouchers, the invoices and receipts in sequential order for the statutory period it has to be retained for.
- Go digital by utilizing one of many reasonably priced accounting software to manage your financial information. Business owners should be aware of their financials performance by reviewing their income statement, balance sheet, and cash flow statements. Operations are important but time should be carved out to assess these statements and boost your business’ financial future.
The Future of Accounting
‘Supporting the decision-making process by providing anaytical financial data is where the value of accountants is” says Leigh-Anne
Technology is quickly advancing to the point of replacing certain processes such as data entry, with the anticipated scanning technologies. She noted that “Accountants’ minds will be needed more than ever in analyzing information, tracking progress, budget setting, setting realistic goals, forecast communication, and raising capital for the company.”
Amiss these changes, Leigh-Anne explained that she uses transformative leadership to steer her team. She tailors her style of coaching to suit each member of her team. She fosters a work environment of trust to employees in the execution of tasks as well as hands-on mentoring is required.
Do you have a business and are not sure what to do with your accounts or struggle with the analysis? Contact Leigh-Anne at firstname.lastname@example.org
Author: Bernice Antoine