The accounting and financial industry has one constant – change. Ensuring your teams are always current on regulatory and compliance changes can be challenging, especially when facing various business challenges.
Ongoing labor shortages and recruitment challenges coupled with overburdened staff is the perfect storm that could see your business unable to meet compliance requirements.
However, with easy access to specialized finance professionals, your business can rest assured that your teams have adequate training and that your business reputation is safe.
Challenges faced in the finance and accounting industry
On the surface, financial departments run without a hitch – but under the surface, chief financial officers face myriad challenges. Finance leaders’ most significant challenge is finding and recruiting the specialized people they require to ensure the business remains compliant while ensuring day-to-day tasks run smoothly.
Another significant hurdle CFOs face is keeping financial teams trained and current on the latest regulatory and standards compliance required for the countries they operate in. This knowledge is in addition to all the typical tasks performed by financial teams, including:
Bookkeeping – Recording and organizing business transactions, as well as ensuring financial records are accurate and up to date.
Financial analysis – Identifying trends in financial data to help the business make informed decisions. This work can include creating financial reports and forecasting.
Tax preparation – Preparing and filing tax returns, ensuring relevant tax law and regulation compliance
Budgeting – Creating and managing organizational budgets, monitoring expenses and revenues and adjusting where necessary
Auditing – Reviewing financial records for accuracy and compliance
Financial planning – Strategy creation and implementation to achieve business financial goals
Risk management – Identifying and mitigating financial risks to protect business financial stability
Management accounting – Aiding business leaders in strategic financial planning to increase growth.
Consistent demand peaks
No matter where in the world you operate, demand spikes at specific times during the year. These include:
Tax Season
Tax time varies from country to country. It’s typically the busiest time of year for accounting firms and adds extra pressure on internal business finance teams.
From increased client demand on the accounting firm side to businesses rushing to prepare and file tax returns, double and triple checking for accuracy – as well as potentially producing GST or VAT reports and taking care of fringe benefit tax (FBT) – it’s stressful. Managing cash flow during this period is crucial to ensure proper expenditure management and maintain liquidity.
End of the financial year
Like Tax Season, the end of the financial year can vary from business to business. Many coincide with the end of the country’s fiscal year, whereas others align with the calendar year. This period can lead to increased departmental and firm stress as they try to close their books and prepare financial statements.
Other financial demand spikes
All finance departments and accounting firms can prepare for tax season and the end of the financial year – though other unforeseen events could put your teams under additional stress. Ensuring your teams have the proper training for all potential demand spikes is crucial. Different finance functions need to be prepared for unforeseen events to drive strategic business outcomes and improve overall efficiency.
Mergers and acquisitions
In many mergers and acquisitions, internal teams aren’t privy to the purchase or acquisition of a company until the last minute. These events require significant financial due diligence, and additional accounting work must be done, putting internal teams under pressure.
Economic changes
Whether the economy begins to boom, or we see a recession, accounting and finance services often see an increase in demand for their services. Requirements for an economic change may include:
- Business finance or budget restructuring
- Tax and financial consulting
- Advisory services
Regulatory changes
In most circumstances, you’ll know of upcoming regulatory changes and have plenty of time to prepare for them. An extensive preparation process ensures teams are trained for the latest compliance. During training, accounting firms and finance teams may see a spike in demand as they adapt to changing standards or new software.
Overburdened finance teams
One of the most critical factors CFOs must be aware of is the increased stress on internal teams within the finance department as businesses seek to recruit new team members.
Introducing training to a team already under an overburdened workload can create a breaking point.
Ensuring you have enough people in place at all times, well ahead of seasonal spikes in demand, is critical to ensuring high employee satisfaction while reducing turnover.
Why is training essential in accounting and finance?
Your finance and accounting team is the glue that holds your business together. Ensuring your team members are fully trained and up to date on the latest regulatory guidelines is vital to your success. Training helps finance teams manage their key responsibilities effectively, ensuring smooth financial operations and collaboration across departments. Keeping financial teams trained impacts the following:
1. Compliance
Financial compliance is critical for every global business. The business must remain aware of the latest regulations and laws relevant to its operations and industry.
Financial regulations and laws change frequently. Failure to comply can result in financial penalties, legal issues and damage to your brand reputation. Proper training equips finance teams to implement compliance measures effectively, ensuring the business meets all applicable requirements.
2. Accuracy
Financial tasks, such as bookkeeping, budgeting and financial planning, require attention to detail and efficient accuracy.
Regular training can help finance teams stay current with best practices and be comfortable using the latest financial technology – improving their accuracy and efficiency.
3. Risk management
Managing market and credit risk is part of the finance team’s day-to-day operations. Regular training ensures staff are up to date with the latest risk management developments and are aware of appropriate steps to take to manage risk effectively.
4. Reputation
A business’s financial position directly impacts its reputation. Financial teams are often responsible for managing this. Regular training ensures teams provide accurate information and make sound financial decisions – enhancing the organization’s reputation and financial health.
5. Professional development and financial planning
Developing employees is key to promoting from within.
Regular training helps teams develop new skills and advance their careers – helping your business benefit. It also increases job satisfaction and productivity while lowering turnover. It’s a win-win for businesses worldwide. Finance managers play a crucial role in professional development by managing budgets for training programs and collaborating with other departments to optimize resources.
Benefits of Training for Finance Teams
Training is essential for finance teams to stay up to date with the latest trends, technologies, and best practices in the industry. Here are some benefits of training for finance teams:
Enhanced team performance
Training can also enhance team performance by improving communication, collaboration, and problem-solving skills. When finance teams are well-trained, they can work more efficiently and effectively, leading to improved productivity and job satisfaction.
Additionally, training can help finance teams develop a more customer-centric approach, fostering better relationships with stakeholders and leading to improved business outcomes. A well-coordinated finance team can seamlessly integrate with other business units, such as the marketing team, to support overall business strategy.
Increased job satisfaction and retention
Training can also increase job satisfaction and retention among finance team members. When employees feel that they are developing their skills and advancing in their careers, they are more likely to be engaged and motivated. This can lead to improved job satisfaction and reduced turnover, which can save organizations time and money in the long run.
Investing in professional development shows employees that the organization values their growth, leading to a more committed and loyal workforce.
Improved financial planning and analysis
Training can help finance teams improve their financial planning and analysis skills, enabling them to make better-informed decisions and drive business growth.
With the right training, finance teams can develop a deeper understanding of financial modeling, forecasting, and data analysis. This enhanced knowledge allows them to identify areas for cost savings and optimize business performance, ensuring that the organization remains competitive and financially healthy.
Building a high-performing finance team
Building a high-performing finance team requires a combination of skills, knowledge, and experience. Here are some strategies for building a high-performing finance team:
Developing skills for digitization and automation
As finance teams become increasingly digitized and automated, it’s essential to develop the skills needed to work effectively in this new environment. This includes skills such as data analysis, financial modeling, and process automation.
By developing these skills, finance teams can stay ahead of the curve and drive business growth. Embracing digitization and automation not only enhances efficiency but also allows finance teams to focus on more strategic tasks, such as cash management and financial planning, ultimately contributing to the organization’s success.
By implementing these strategies, organizations can build a high-performing finance team that is well-equipped to handle the complexities of modern financial management and drive business success.
Ensure comprehensive team training with Cloudstaff
We aim to help our customers succeed. Cloudstaff Academy enables our teams to provide the highest accuracy, compliance and productivity levels – helping you meet your business objectives. A financial controller plays a crucial role in ensuring team training and accuracy.
Cloudstaff is the industry’s trusted next-generation remote staffing partner. We use top tech, cutting-edge training and expertise to help your business achieve its goals. For more information about Cloudstaff Academy, speak to a member of our team today.