Category: Accounting

Practical Ways to Create an Accountability Culture in a Company

Accountability is an odd concept. It has been defined as having the responsibility and authority to act and fully accept the natural and logical consequences for the results of those actions. Personal accountability is an admirable trait, one that everyone should strive to attain. But as a leader, or even as a high-functioning member of a team, it is essential to create an accountability culture for individuals and the group as a whole.

While some may attach a negative air to the word accountability, research indicates that holding people accountable for their results has very positive effects: greater accuracy of work, better response to role obligations, more vigilant problem solving, better decision making, more cooperation with co-workers, and higher team satisfaction.

But as it goes with all foundations, there must be a firm structure added in addition to having a complete building. Here are several additional tips to help build an accountability culture in a company:

Set expectations

It is important to set firm, clear, and concise expectations for any group. Accountability will not grow where team members are unsure of the group’s purpose and vision. Teams need to know what is expected of them before they in turn can be expected to be held accountable.

You can set expectations by:

• Clearly communicating the team’s mission and vision.
• Emphasizing the urgency and importance of whatever task you have assigned.
• Laying out the standards that will be upheld throughout the process. Be specific regarding end results, time frames, and expected levels of effort.
• Clearly and explicitly defining each member’s role and responsibilities.

The clearer initial goals and expectations are, the less time will be spent arguing when someone is held accountable because of ambiguous initial goals.

Invite Commitment

Although you may make these initial conditions and goals clear, it is important to have the team members commit to these standards and expectations. Work with your team to make sure that everyone commits to their role, understanding how it will benefit both the individual and the team. Be sure to put it in writing, too. This will give the commitment a physical representation that cannot be debated.

Accountability grows when this connection is made, and is enhanced when other people are aware of the commitment. Team members are further motivated to accomplish their tasks and will more readily welcome you holding them accountable for their actions or lack thereof.

Measure progress

Measure the progress of team members in alignment with the goals and expectations set out at the beginning. Goals can only be measured when they are quantified. Compare the measured results to the goals to find out where team members need the most improvement.

Provide feedback

After setting clear expectations, committing to set goals, and measuring progress, it is important to provide feedback to team members so that there can be improvement towards the goal. When creating an accountability culture in a company, make sure that the feedback that you do give highlights both the positive things that the team member has done and the areas where they can improve.

Set clear expectations

Accepting responsibility requires clarity in what is expected. Merely saying “complete the project according to the highest standards and as soon as possible” will always be unclear unless you provide specifics.

If you ask five people what “to the highest standards means,” you’ll probably get five different answers. For someone, the highest standard for a project may be defined as delivered with the greatest amount of detail and precision; someone else may find effectiveness and agility more important than perfection. It’s the same for “as soon as possible” — does ASAP mean in an hour, tomorrow, or next week?

Lack of specificity and unclear expectations create accountability gaps. To fill these gaps and reduce ambiguity, try to be as specific as possible. Try the following:

• Define specific timeframes like “October, 3rd at 5PM your time”
• State who is responsible for the project
• Describe what the completed version of the project should look like
• Provide examples

While a solid workplace culture starts with leadership and their initiative, your whole team is involved.

Discuss your organizational values with every single employee so they feel they’re part of it. Sharing your commitment to a social cause or stopping climate change is one thing, but these values should be a part of your branding, marketing strategy, and your day-to-day company life. That includes how your team works and what activities you commonly pursue.

Getting everyone involved in these common-cause tasks gives them a sense of fulfillment and will have them bragging about how cool their workplace is, turning workers into your most valuable advocates. The old ways of bad companies faking their care for employees no longer works. Future successful organizations need to be fully involved in building sustainable workplace cultures and activities that will support global causes.

Pre-existing work culture can be difficult to change. That’s why it would be best for you to take a systematic approach when it comes to developing it and integrate into your business strategy. This means you’ll need to designate a person who’s going to be responsible for the growth of your workplace culture and keeping it at sane levels.

Accept constructive criticism from your employees

Because merely giving feedback to employees isn’t enough. Maintaining an open and flexible relationship with your employees will make them employees feel comfortable, talking about your performance candidly with you.

As such, you will be able to understand the employee behaviors, spot negative habits, anticipate problems within the team, get to know what they expect from you as their leader. Not being immune to criticism yourself makes this a one-sided situation and discourages the employees from taking feedback seriously. Thus, it can be said that accountable leaders should seek feedback from the employees because feedback creates responsible people.

Consequences:

Most people see consequences and they immediately think of a negative connotation. We overlook that consequences can also be positive. Make results and consequences visible. Talk to your team strategically vs tactically, which is usually done through questions vs. statements. Secondly, for some reason, leaders are the first to let people know when something’s not right or if it’s gone awry. But when things go well, it’s almost as if the success is glossed over. The consequence of that, though, is that you help create a remedial culture. People are only noticed and given attention at weekly team meetings when things don’t go as expected. So work to give equal (or more) weight to what’s gone right. Celebrate!

TOP PAYING ACCOUNTING JOBS

The spectacle-wearing pencil pusher in the green visor is so far in the past, it barely even registers as a stereotype anymore. Accounting today is one of the most high-tech, cutting-edge professions out there, making advances in realms ranging from Big Data analytics to cloud computing to blockchain technology. Accountants are the professionals who make sure that the money of corporations, governments, organizations, and individuals are being used well, and that means that, as long as there’s money, accountants will be indispensable.

WHAT DO ACCOUNTANTS DO?

Obviously, specific job duties depend on the specific jobs, but there are some skills that are pretty much required across the board. Obviously, a strong grasp of mathematics is essential. Every accountant, at whatever level, should have a general understanding of basic bookkeeping, in addition to more complex understanding of areas like auditing, payroll, financial reporting, and (of course) taxes. Even if you’ve worked your way to the managerial or executive level as an accountant, knowing the lower-level, day-to-day work of accounting will make you a better leader. Modern accounting is highly collaborative and team-based; while accountants do their fair share of individual work, being able to work well with others will be critical, especially in a corporate environment.

EDUCATION FOR ACCOUNTANTS

There are highly rewarding jobs available for accountants at every degree level, from associate’s to doctorate. Associate’s Degree: Most students will get a 2-year associate’s in accounting, or a 1-year diploma in accounting from a community college, and that’s all most people will need to get a bookkeeping job, or a job as an accountant’s assistant. While it’s limited in terms of opportunities, students who graduate with an associate’s can transfer for a bachelor’s degree at a local university.

VICE PRESIDENT, FINANCE

Right at the doorstep of the C-suite, the Vice President of Finance is a crucial link between the highest executives and the management, making sure the desires of the C-Level is communicated to the lower rungs of the organizational ladder. The job of the Finance VP is to lead and coordinate company financial planning, debt financing, and budget management, while reporting back to the upper levels. V.P. Finance professionals usually work their way into their job from the management level; it’s not usually necessary to have a master’s degree, but having an MBA or MAcc in finance can distinguish the ambitious from the merely competent.

CHIEF FINANCIAL OFFICER (CFO)

Chief Financial Officer – the CFO – is one of the highest levels of authority and responsibility an accountant can aspire to. To become a CFO, an accountant must have the highest level of expertise, experience, and excellence – a long-standing track record of leadership and results. The larger and more complex an organization, the more crucial the role of a CFO becomes, as a centralized source of authority around all things money in the company. In other words, the buck stops with the CFO.

Careers in Accounting

Professional accountants of today have careers that use e a wide variety of skills applicable to highly specialized roles. When the editors of the Journal of Accountancy wrote in 1912 that an accountant is beginning to be “looked upon as a business physician,” they could not have envisioned the dynamic array of practice areas that would exist 100 years later.

According to the U.S. Department of Labor, between 2016 and 2026, the number of jobs for accountants and auditors in the United States is expected to increase by 10%. Changes in tax laws and the regulatory environment, as well as the expansion of global commercial business and increased financial controls continue to drive the demand for skilled accountants in the public and private sectors.

What is an Accountant and What Do They Do?

Accountants work with individuals, small businesses, large corporations, non-profits and government agencies to prepare and organize financial and tax documents.

Accounting is defined as an organized way to keep records of business and financial transactions, summarize those transactions, and analyze, verify, and report financial results. Another way to look at accounting is that it’s an information system designed to identify, measure, record, and communicate reliable, relevant, and consistent information about the economic activities of an organization.

These are among the many tasks that accountants perform for their clients:

Organizing and maintaining financial records

Evaluating financial operations and making recommendations to management about best financial practices

Examining account books and accounting systems to make sure they are efficient and conform to accepted standards and accounting procedures

Preparing tax returns and related tasks

Examining financial statements to make sure they are accurate and meet legal requirements

Suggesting ways to increase revenue, reduce costs, and improve profits

Things To Know About Accounting

things the accounting sector should know, because it was one of the first to feel the impact of advancements in data technology. Some accountants, but most regular people, were adopting and implementing new technology like tax software and online tools to make the process faster and reduce the number of errors. Despite these new tools, which have advanced even more and made it easier for anyone to do their own accounting, accounts are more valuable than ever.

Technology Will Change Accounting

Automation is not scheduled to impact accounting at all, but there will be some changes in the field and how accountants do their job. Artificial intelligence and machine learning is advancing quickly, and administrative accounting jobs will not be needed soon and phased out. The administrative accounting positions will fall to technology that is able to do the jobs quicker and with more efficiency, but it will not place the jobs of regular accountants at risk. Accounting has many cogs where computers will not be able to replace people, such as consulting, advisory positions and many CFO responsibilities. The firm, Accounting Principals, feels skilled professionals are the most sought after to expand departments, not software. Admin roles may have decreased, but the need need for accountants will not disappear anytime soon.

Right Now Is an Especially Good Time to Be an Accountant

Accounting firms and accounting departments inside major companies are expanding. The biggest concern companies and firms have concerning accounting is there is a shortage of quality accountants. This is good news for people wanting to become CPAs though. They will not be entering a saturated field. The unemployment rate for accountants is well below the national average.

Accounting Positions Are Finding Masters Degrees to Be Essential

Accounting careers may be in demand, but it is important to bring along a master’s degree before entering the field. It allows people in the field, especially accountants, quite a bit of room for salary growth. Online programs with flexible class schedules make it easier to go after an advanced accounting education while working. There are many accounting firms and companies even willing to subsidize their employees’ educational pursuits as long as they will benefit the firm or company in the long run.

Accounting Employees Do Better If They Have Specialties

Accounting careers generally turn out more financially positive if the accountant carves out a niche and becomes well versed in a specific branch of accounting. Any accountant that takes the time to develop a niche increases their value. Accounting will always be relevant and critical. Additionally, the accounting field will always have jobs. It is recommended to pursue more classes or seminars whenever possible and finding a mentor in the desired niche that can help with growth and connections.

It’s almost tax time. Do you need to see an accountant or could you do it yourself?

Tax time is just days away, and this probably isn’t the first year it’s snuck up on you.

Maybe it’s even your first time. Yep, adulting is hard. It’s even harder if you have a small business, multiple incomes, an investment property or just a pile of receipts you’d rather not deal with. But even if your tax seems relatively simple, the question of whether to get an accountant to help might have crossed you mind.

Doing your tax for the first time

If you are doing your tax for the first time, it’s likely to be pretty simple, despite what you might have heard. “Doing your taxes is often portrayed as a very challenging — and potentially scary — thing, so it is understandable that a young person may feel overwhelmed,” says

How much are you hustling?

The more complex your income, the more reason to see a registered tax agent. Small business, rental properties, capital gains — all these things can be difficult to get right when lodging a return.

Do you know what you can claim?

You’ve kept your receipts, but do you know what you can rightfully claim? “Common deductions include work-related expenses, self-education expenses, charitable donations and the cost of managing your tax affairs [like paying an accountant],”

Other reasons an accountant might help you

If you’ve made a mistake on a past tax return, you can request an amendment through myTax yourself. But if you’re unsure about whether you should be making an amendment or what impact it might have, an accountant would be a good idea,

What does a Accountant do?

An accountant is an important career field in finance and business. Accountants prepare taxes, examine financial records for accuracy, and prepare financial reports for individuals and businesses. They track a company’s profits and losses and ensures their clients comply with tax laws and regulations.

Earn a Bachelor’s Degree in Accounting

Though you may think all accountants have a bachelor’s degree in accounting, a degree is not mandatory. In fact, OnLine reports a little over 40% of accountants have earned a bachelor’s degree. The rest of the accountants surveyed had earned an associate’s degree or have taken some college courses. Given that over 40% of people in this career field have earned a bachelor’s degree, we’re listing a bachelor’s degree in accounting as step one so you can be competitive in the job market.

Become a Certified Public Accountant (CPA)

To become a licensed certified accountant, you must earn a CPA certification. Accountants who earn the title of CPA have met education and experience standards and they passed the CPA exam. Not all accountants become a CPA. Others gain experience as an accountant while working toward their education and experience requirements and then study to pass the CPA exam. Though the requirements to become a CPA vary by state, the CPA exam is the same for everyone. Learn more about a career in accounting and the CPA exam on the American Institute of CPAs website.

Gain additional certifications in accounting

Accountants can choose to become certified in a focused area of accounting. Though this is voluntary, a specialization can earn you a competitive edge over other job applicants. Certifications that an accountant can earn to include a Personal Finance Specialist certification, Accredited in Business Valuation certification, Certified Information Technology Professional certification, or a Certified Fraud Examiner. Each specialization may have its own requirements to meet. For instance, to become a Certified Fraud Examiner (CFE) you must become a member of the Association of Certified Fraud Examiners, hold a bachelor’s degree or meet experience requirements if you do not have a bachelor’s degree, and then pass the CFE exam.

Job Description of an Accountant

An accountant makes sure a company or organization is efficiently operating by accessing their financial records. Duties include analyzing data, finance reports, budgets, tax returns, and accounting records. They send financial reports to their clients that include current financial status, and future trends. They may also recommend ways for their clients to become more financially stable or advise on ways to take advantage of tax incentives.

Hiring a Payroll Services Vendor – Does it Make Sense For Your Business?

Outsourcing specific commercial tasks can enable you to free up resources and energy to focus on your core competencies. Payroll is an important function and in all likelihood it makes sense to outsource payroll administration rather than hire resources in-house and dedicate them solely to the function.

Payroll companies help you to organize your payroll, adhere to policies and procedures, and get employees paid on time. To stay on top of your tax obligations is the main reason for your business to consider using a payroll provider. You can locate accupaysystems that can do excellent payroll processing at very affordable rate.

Payroll administration permits attention to detail and even the smallest indiscretion can attract heavy penalties from the tax authority of your country. In the US, the IRS has a history of levying heavy fines on small businesses for even the smallest transgression.

Recently released statistics show that one out of every three small businesses is penalized in some way for not complying with tax laws.

If your company is large enough, you may choose to conduct payroll functions in-house but be prepared to hire at least a couple of workers dedicated to this function. You will also have to allocate resources to continuously train your payroll staff in use of accounting software and to keep up with the frequently shifting state and federal tax laws. Also if you are a growing company that is continuously adding new employees, teams and locations, managing payroll is going to be quite a challenge.

How Payroll Systems Work

A payroll service is an outside company that special­izes in every aspect of the payroll process. The first such service in the United States, Automated Payrolls, was founded in 1949 and relied on primitive technology like electro-mechanical calculators and something called the Comptometer bookkeeping machine . Automated Payrolls grew to become Automated Data Processing (ADP), one of the largest business outsourcing services in the world.

A basic payroll service will collect wage and hour information from the employer and use that information to calculate gross wages, subtract all pertinent withholdings and deductions, print checks, make direct deposits and prepare all employment tax filings. The service will also mail out W-2 and 1099 forms and resolve any inquiries from the IRS or other government agency.

Some payroll services offer more comprehensive help. They can take over some of the responsibilities typically handled internally by human resources, like administrating a company’s retirement accounts and benefits programs. They can file new employee forms with the state and help comply with any court-ordered wage garnishment programs. Some payroll services even offer a free phone help line for any questions related to human resources or payroll.

The Internet has made payroll services even more convenient. In the past, an employer had to call the payroll service with information about wages and hours for the upcoming paychecks. Now the employer is provided with a Web-based payroll account that he can update 24/7. All he has to do is log on to the system, punch in the hours for the pay period and the data is updated in real time. Payroll services keep record of all payroll information and make all of this data available online through reports, payment histories and other features.

Pay-as-you-go payroll prices

A pay-as-you-go payroll service model is the perfect solution for any business that encounters huge peaks and troughs in the size of their labour force, affording all the benefits of a fully managed service without the need to tie yourself into a long-term contract.

Obviously this means that you will have to pay towards the upper end of the fully managed service scale with no discounts for more substantial numbers, as your provider will be seeking some kind of recompense for the absence of security that comes from guaranteed income. However, the flexibility provided by a pay-as-you-go model can be essential as staff and come and go.

If you own a construction business, for example, and need to expand your workforce by a third for a set number of months while a particular project is completed, this is a way of ensuring that you and your staff are legally covered in terms of payment throughout the duration of the work.

An alternative use of the pay-as-you-go model of payroll management is to cover a permanent in-house staff member who is unable to perform the task for a set period of time – a fixed recovery time from a bout of ill-health, for example, or maternity leave.

Your employees will still expect to be paid in a timely and accurate fashion during this period, and HMRC are not renowned for their patience and sympathy in dealing with financial inaccuracies caused by unforeseen personal circumstances.

How to process payroll with a payroll service:

Just like with the DIY option above, you need to have all your employees complete a Form W-4 and find or register for Employer Identification Numbers.

From there:

Step 1: Choose a full-service payroll provider. If you’re not sure how to do payroll yourself, use payroll software that reduces the risk of errors or fines. Many payroll processing services, like Square Payroll, handle your payroll taxes, filings, new hire reporting for you, and allow you to complete payroll online. Sign up takes minutes — so you can quickly start doing your own payroll the same day you sign up.

Step 2: Add your employees. You need to set up your employees before you process their payroll. Adding employees you’re paying for the first time is generally quicker; if you’re switching to a new payroll provider, then you also need to add your current employees’ year-to-date payroll information. Either way, you generally need to enter employee names, addresses, Social Security numbers, and tax withholding information. If you’re using Square Payroll and would like to pay employees using direct deposit, you can just enter your employees’ names and email addresses so they can enter their personal information themselves.

Step 3: Track hours worked and import them. The U.S. Department of Labor requires employers to keep track of wage records such as timecards for up to two years. Certain states may have longer retention requirements; be sure to check the specific requirements in your state. You can track time using your Square Point of Sale and import the timecards to payroll.

Step 4: Process your first payroll run. Click Send and you’re done!

Step 5: Keep track of your tax payments and filings. The IRS requires tax forms to be kept for three years. Certain states may have longer retention requirements; be sure to check the specific requirements in your state. With Square Payroll, you can find copies of your tax filings in your dashboard.

The Pros of Outsourced Payroll

“If you have one employee, get a payroll service” is advice financial expert Rhonda Abrams gave readers of “Inc.” magazine in 2010. As much as outsourcing this necessary aspect of running a business is tempting, it comes with risks. Before handing over the responsibility for the paychecks to an outside service, weigh the pros and cons

Pro: It’s a Time Saver

Outsourcing payroll saves a business time it would otherwise spend calculating pay and deductions and remitting checks to employees and taxation authorities. The printing costs of pay stubs might also be reduced. Some payroll companies offer a clock in/out function for employees, so you also save time calculating how many hours are owed each pay period. A company also provides services such as direct deposit and online pay stubs to further ease the payroll burden.

Pro: It Calculates Taxes Accurately

Small business owners know the deductions involved with employee payroll can be complicated, state and federal taxes among them. A payroll company often is better equipped to calculate these deductions accurately and consistently. The company also ensures taxes are paid on time. The IRS frequently penalizes business owners for errors in payroll-related taxes; one out of three is affected, according to “Inc.” magazine. The fines levied can cost more than the amount of the error.