Hiring Archives - Number Nerd Bookkeeping Solutions

July 24, 2018

How To Prep Your Business For Growing A Team

Every business is different and every business owner has their own set up goals and aspirations. If you’re looking for more freedom and less time working inside your business, growing a team might be on your bucket list.

But simply hiring people to work with you isn’t going to give you any kind of freedom–especially if you’re not ready. You need to be equipped, both financially and with systems in place, if you want the freedom a team can provide.

Think you’re where you need to be in order to hire a team? Make sure before you take the plunge.

Know Your Financials

You don’t want to bring on contractors or employees without having your financials solidly in place. You need to know that you have the budget to pay for a new hire, and that you’ll be able to pay for their services down the road. There are few things worse than bringing someone onto your team, coming to depend on that role, only to find that you weren’t really prepared for the expense.

Don’t bring someone onto your team & depend on them if you can’t afford them in the long run. Click To Tweet

Brain Dump Tasks

Before you decide to hire someone, you need to know what role you’re looking to outsource. It’s hard to take an objective look at what you want to let go of until you know exactly what it is you do in your business on a day-to-day basis.

Brain dump every role you take on in your business, categorized by topics–sales, marketing, networking, bookkeeping, client work, etc. Then write the tasks that you take care of in each of these categories. Even the tasks that seem unimportant, write it down.

Evaluate Your Tasks

If you want to start outsourcing to team members, you need to do so strategically. Let go of the tasks that are better served by someone else. Ask yourself: What are you not good at? What do you never seem to find the time for? What do you hate doing? Answering these questions will help you to identify the roles you should outsource first.

Know what you’re good at and not before deciding what to outsource. Click To Tweet

Outline Processes

Bringing someone new onto the team requires training, even when you hire someone with expertise in their field. As the business owner, it’s up to you to let team members know how to do something inside your unique business. You have a certain way you want things done, whether it’s a client assignment or something to help you market your business.

I make a list of the steps for a certain task, then record a video of me actually doing the task. This helps me ensure that the entire process is complete from beginning to end, and gives the team member a visual–which helps to improve comprehension and lowers the chances of error.

Communicate, Communicate, Communicate

Your team members will come to you with their own unique ideas and ways of doing things. While you can teach them your processes, they are not you. Even when following your systems, your team members will not do the task exactly how you would. Sometimes, they do it better. Other times, you may need to course-correct a bit. But always keep lines of communication open and give feedback often.

It’s difficult to grow a business if you’re the only person inside and doing the work. A team can help take things off your plate so you can do what you do best. You just need to be able to do it right, with the right systems in place and the finances to back up your hire.

May 22, 2018

Why you need a virtual CFO for your biz

You started your business because you had a skill (product or service) to share with others. You wanted to take something you learned in your 9-to-5 job and grow it into something bigger than you could if you stayed in corporate.

And you were able to do just that. You spent time creating products, developing services and serving the people who needed what you had to offer.

At some point, however, you realized that you didn’t necessarily have the business acumen needed to grow bigger. Maybe you find reading those financial statements a challenge or you don’t feel you have the time or resources to plan strategically for growth.

Wherever you’re feeling the squeeze, adding a virtual chief financial officer (CFO) as a consultant might be the right next best step for your business.

Why virtual?

As a start-up or growing business, you know what it’s like to grow your team. A virtual CFO shouldn’t be your first hire. They’re your hire once you’ve seen growth and need to know what’s coming next, down the road.

Hiring staff members is difficult–and expensive. It’s hard to know you’re making the right choice in hiring, and hiring employees (versus contractors) means a more permanent relationship. But having that consultant role, along with CFO expertise, is a pivotal part of a larger business.

A CFO has a unique skillset, making it a more expensive hire than your assistant or other team member. But hiring a virtual CFO allows you to bring someone on part time, saving you money while still having the best possible fit as part of your go-to team. Besides, while you may need a CFO’s expertise, you likely aren’t quite ready to bring on a full-timer in that role. Having a consultant on retainer who has CFO experience is important.

What can a CFO do for my small business?

First off, it’s important to note that the CFO is not the one that does the bookkeeping. However, they should work with and interact with your bookkeeper, as needed.

Think of the CFO as the financial translator and mentor for your business. She can help you and your stakeholders read your financial statements and help you make educated decisions about investments, cash control, budgeting and more. And she does this from an independent perspective–so while she’s invested in giving you sound advice, she doesn’t actually have skin in the game.

Your virtual CFO should also work with your bookkeeper, accountant and tax preparer to make tax time a lot smoother–and help you make decisions about changes for the next tax year. As an added bonus, you may even be able to outsource management of your in-house (or virtual) accounting to a virtual CFO if you have multiple financial roles in your organization. One less piece of your business you need to manage on a daily basis, so you can spend more time on the growth and development of new products and services–the things that are bringing in the money for your business.

Am I ready?

Not every business needs a virtual CFO, and bringing one on before you’re ready will cost you. I recommend waiting until you are at a pivotal point that you need a professional’s financial expertise to help you budget and plan and make decisions for your future. It’s a very high-level position for businesses that are looking to grow in big ways, and the position looks very different for product- vs. service-based businesses.

Not only does Number Nerd offer CFO services, we also work with a number of virtual CFOs. As consultants, we can help you determine whether you’re ready for this role in your business. And if you are, be sure you’re on my email list–this week I’m telling you exactly what you need to look for when hiring someone.

February 6, 2018

Hiring An Accountant: What You Need To Ask

We’ve gone from the most wonderful time of the year (the holidays) to the most stressful time of the year (tax season). If you’re a business owner and your books are less than organized, you know exactly what I mean.

As tax deadline looms, I get a lot of inquiries from businesses who need help cleaning up their books. They didn’t do a good job of categorizing expenses or tracking subscriptions over the last 12 months and now they’re worried about what that tax bill is going to look like.

While I don’t do taxes (I recommend a CPA that has experience in your industry), I do work with accountants on a regular basis. Some are incredibly organized and are a great resource for me as we help our mutual clients make the best possible financial decisions. Others, however, simply do what the client asks rather than what’s in their best interests.

If you’re a biz owner, you need a CPA. Vet your prospects thoroughly before hiring. Click To Tweet

If you’re looking for an accountant in this tax season, interview them as you would any new hire in your business. Here’s a list of some of the questions you should add to your list.

What experience do you have in my industry? A good CPA will know the level of detail you need in your income and expenditures for your particular business. This includes identifying and tracking revenue streams, expenses for specific products and services in your industry.
Have you ever worked with a business like mine before? There’s a big difference in expenses for a small brick and mortar retail store vs. a home-based service business vs. a large industrial shop. For example, a $12k ink or office supply expense is a no-brainer for a large print shop, but is clearly an error for a small retail store. A good CPA will recognize things like this and ask you about them.
Will you work with my bookkeeper? Most CPAs don’t do bookkeeping work and rely on professional bookkeepers to keep up your books. However, some CPA firms do have bookkeepers on their team. With that being said, if you already have a bookkeeper be sure and let your CPA know. In addition, you’ll want to ask if your CPA will work with your bookkeeper and recommend any changes or adjustments needed to your bookkeeping records. Most CPAs will be happy to be work with your bookkeeper. And if they know you have a bookkeeper on your team, they will most likely provide you with adjusting journal entries at year-end.
Can you explain your processes and your expectations of me? Your CPA needs needs to get to know you and understand your business–in essence how you make and spend money. Each CPA has their own way of getting data from you: a questionnaire that you fill out, access to your accounting software, financial statements and a copy of your general ledger report. It’s important to have an actual conversation with your CPA as well. Make sure you know up-front how you’ll be expected to share that information and if you are required to complete a questionnaire or upload your data securely to a program they use.
Can you provide references? Everyone needs to start out somewhere, even accountants. But if a CPA can’t provide any client references, consider that a red flag. Get a few references and follow up with them. Be sure and check if they have experience in with your industry and how they are about responding to questions you might have.
Do you provide tax planning? I think this is self-explanatory, but it’s important to ask the CPA how they will be able to help you lessen your tax burden. This is especially important if your business is on the upswing, adding team members, opening a new location or if you’re transitioning from side hustle to full time. You will want a CPA on your team that can advise you of what to do or not do to lessen the amount you’ll owe at tax time, and thus help you plan throughout the year.

Doing your own taxes as a business owner is like … as a rule of thumb just don’t do it. It’s not your expertise and laws and rules shift so quickly that it’s impossible to stay up-to-date. Instead, find a qualified CPA who has your best interests in mind–and who has experience in your particular industry. And one that can help you with tax planning too!