3 Key Challenges in Accounting and Finance Recruiting (and How to Tackle Them)

Learn how to tackle 3 key challenges in accounting and finance recruiting!

3 Key Challenges in Accounting and Finance Recruiting (and How to Tackle Them).jpg

Changes in accounting and finance recruiting

Accounting and finance recruiting is a term used for finding and hiring the right job candidates in the accounting and finance industry sector.

Accounting and finance sector has been going through some major changes lately.

If you want to be successful in recruiting accounting and finance professionals, you have to stay up to date on accounting and finance employment trends and challenges.

3 key challenges in retail recruiting (and how to tackle them)

Recruiting the right people for an accounting and finance jobs can be a challenging task. However, if you leverage the latest innovations in recruiting, you can recruit finance and accounting professionals much easier and faster.

Here are the 3 key challenges in accounting and finance recruiting:

Accounting and finance recruiting challenge #1: Talent shortage

According to the Bureau of Labor Statistics, the unemployment rate for accounting and financial sector at 2.2%, which is even lower than the overall national unemployment rate of 4.9 percent.

As a result, many studies (such as recent survey by Accounting Today or another by Robert Half) report on difficulties with finding accounting and recruiting candidates. According to recruitment consultants Hays, 76% of accountancy and finance employers said their top challenge is a shortage of suitable applicants.

How to tackle this challenge?

Differentiate your employer brand in order to stand out among your competitors and attract the attention of the scarce talent. Don’t be afraid be different and even break the rules! Change the stereotypes of the finance and accounting sector and boring and conservative.

Take a look at the example of a The Motley Fool, a financial services firm who decided to break free from the buttoned-up image of its industry. This company’s “foolish” culture became their recruiting powerhouse – even in a time of talent shortage!

Accounting and finance recruiting challenge #2: Attracting candidates with the right skills

Advances in technology are changing the accounting and financial job positions and its requirements. As a result, companies are requiring accounting and financial candidates who can do more than just crunch numbers. They want people with technology and people skills in order to have the ability to change and evolve with the times.

Research by recruitment firm Robert Half has indicated that 89% of chief financial officers in Australia struggle to find skilled finance staff, primarily due to a lack of professionals with the required niche and technical skillset.

How to tackle this challenge?

Write great job descriptions for accounting and finance positions you need to fill. Make sure you highlight the technical and niche skills and experience you are looking for in your ideal accounting and finance employees!
During the interview, ask the best interview questions to assess candidates personality and culture fit.

A good way to assess candidates knowledge and skills is to present them with a work sample test. Give your candidates a short task similar to the one they would perform at the job.

Accounting and finance recruiting challenge #3: Attracting millennial employees

The salient challenge in accounting and finance recruiting is attracting younger members of the workforce.

A recent survey by the Institute of Management Accountants found that 62% of senior finance professionals believe that recruiting millennials is the biggest challenge for their business!

According to Upskilled report, accounting and financial professionals under 25 years make up for only 8% of total accounting and finance employees!

How to tackle this challenge?

Set up an employee referral program and ask their existing employees to recommend suitable finance and accounting professionals that would make great candidates. According to the Institute of Management Accountants survey, the recruiting practice that has been most successful in recruiting millennials for finance jobs is employee referrals!

Another way to reach millennials is to advertise your open job positions on social media! Instead of posting a classical job description with a list of duties, provide a candidate with a glimpse into your company culture. Here is a great example of Twitter job post published by UK accounting firm My Accountancy Place.

 

10 Most Common Accounting Mistakes of Small Business

Many of us already know how time consuming and also expensive the errors are in accounting, if you make a mistake in the financial statement of your small business. You definitely need to stop making some common accounting errors to protect the small business of yours. Find an Local Accountant in UK, to do the accounting tasks of your small business for you.

As according to Buzz2fone.com, accounting error is very common but one should avoid any mistakes. There many things one can do to avoid this

Here are 10 common mistakes you should be avoiding:

  • Errors in Data Entry

All business transactions you record have to be complete and accurate. With erroneous information entries in account books, an inaccuracy of financial health becomes prominent. You will file government forms incorrectly which can lead to penalties.

  • Omission Errors

If you fail to enter a business transaction it will result in serious accounting mistakes. As you haven’t recorded some business expenses, it can lead to no tax reductions.

  • Too Much Time Spending on Tasks

Wasting too much time in an accounting process is not applicable as that time can be used to generate revenue. As you are small business owner you must focus on how to bring more money to your company.

  • Trashing Receipts

If you throw away any receipts, it destroys the proof of any transaction which might be required in some time. Receipts are required to show consistency in accounting books. To prepare for an audit, receipts are very important.

  • Mixing Business and Personal Funds

You must avoid using same accounts for both personal and business purposes. It can create mess your finances. Confusion of transactions will be big and it will be very difficult to handle.

  • Assuming Profits and Cash Flow as Same

When you are managing your finances you must treat the cash flow and profits differently. Though both cash flow and profit deal with the income and the expenses, measuring of money is different for them. Sometimes international business owners confuse these two and think that they have more money than they actually do.

  • You Haven’t Reconciled Your Financial Books with the Bank Statements

Do not forget to make entries in your account book every time. You must double check your books to ensure their accuracy of data. When you fail to reconcile your Money Visual Personal Finance, finance books and productivity, it could lead towards such errors that might stay unnoticed for a longer period of time. It becomes harder to correct the mistakes if you leave them for long time. You can catch the mistakes earlier with bank statement reconcilation.

  • Failing to Go with the Budget

It is important to plan ahead of time but when it comes to running a business people often overlook that aspect. It is easier to plan your next move if you create a budget. Budget focuses on your goals. It helps to increase profits. With budget you get know where your money is coming from and also where it is going to. Adapting small business seo services to change becomes easier for you if you make a budget.

  • Not Measuring The Progress

Never forget to notice the bigger picture of your business. You must know how you are doing in your business because otherwise you won’t be able to improve it. When you measure your seo business performances, you can spot both weak and strong points in your process.

  • Ignoring Signs of Needing Any Help

You must know when it is time for you to pass your accounting responsibilities to Accountants Services in UK. As your business grows you must delegate your tasks. You don’t earn money from accounting even if you invest time in accounting. Pass your bookkeeping responsibilities to an expert.

 

Good Accounting: The Base for Any Growing Business

Imposed by internet “experts”, the “get rich” business model trend puts all of its focus on planning, branding, and marketing. Though crucial for any growing organization, these strategies are only as profitable as they are built upon sturdy financial support. Though being the only practice that effectively manages your budget, accounting is greatly overlooked by new-fangled business advisors. Its importance, however, is just as paramount as ever.

In fact, flawless bookkeeping is the most solid foundation an aspiring business can procure. Without it, any kind of ROI, progress, or growth would be impossible. Here’s why.

  • Staying on Top of Your Expenses

Running a business is never an easy feat, nor an inexpensive one. Particularly for those entering the market, the costs of launching a startup and running a small company can be overwhelming. However insignificant it may seem in the greater scale of things, even a single pen comes with a price that needs to be included in the overall calculation and run through the books. You might never lose sight of large expenses, but if not properly managed, pennyworths may widen the gap between how much your business spends and how much it earns.

  • Managing Cash Flow

Most commonly, these financial nuances are what makes or breaks a business. For no other reason but profitability, an ambitious entrepreneur has to be aware of every coin that comes in or goes out of the company. If well-situated, small business runners can choose to button up their numbers and keep their books on their own or outsource this sensitive task to an accounting firm. The choice is entirely yours, but it is the one you’ll have to make. Without accurate and transparent books, cash flow management is not possible, and without proper cash flow management, no business can move forward.

  • Evaluating Performance

Speaking of moving forward, accounting is essential for a reason or two more. Staying on top of your books means being aware of everything that happens under your leadership, which enables you to gauge the effectiveness of your current workflow and predict future performance with greater certainty. When clean, financial books will tell you exactly where you stand and in which direction you can go from there. After all, acquiring that kind of insight is what being business-savvy is all about.

  • Planning Ahead

Despite being overly superficial most of the time, the so-called internet experts are right about one thing: a business decision is only as good as it is data-based. Filled with numbers, your books are the ultimate source of financial information, and they should be leveraged as invaluable intelligence bases. With one glance, you’ll know everything about your future options, and be able to set projections, adjust goals and plan strategically.

  • Investing and Growing

If aspiring from a small-sized to a fully-grown business, the investment is the one word you should never use lightly. Every decision you make along the way, every marketing campaign you start, and every project you plan on developing will leave a noticeable trace on your budget. Before choosing to improve by investing in a new business venture, you need to know if is such an investment even possible and whether or not it will be profitable in the long run. Calculations of this magnitude cannot be done without good accounting.

Ultimately, successful businesses know no difference between small expenses and costly investments, and both are impossible to keep track of without an effective bookkeeping system. Whether it comes to applying for loans and filing for tax returns, hiring new people and expanding to new markets, or simply purchasing office supplies and throwing office parties, good accounting is what makes a small business opportunistic and eligible for further growth.