Financial Book-keeping & Accountantancy – Its outdated to walk on a straight line

Being a Business & Finance Strategist, I have come across many chartered accountants, financial controllers across the globe, most of them are simply brilliant in their field, however, it saddens me when I see them being stagnant in their respective positions, no tangible growth when you see them working over the last 20 years, nothing much has changed except the routine annual salary increase if at all – bottom-line remains, they are expected to continue rendering their underpaid, un-thankful support services, that doesn’t end at 5pm

Before we move further, its equally interesting to acknowledge that most corporates prefer MBA Finance over Chartered Accounts, but in all fairness, if we look at it critically, MBA Finance is not even 20% in terms of professional expertise against a CA, yet they are being paid well, and promised consistent growth – I have agreed to call this “progress” that smart ERP applications have taken over most of the accountancy work in the past 2 decades, major banks used to keep atleast 50 CAs in their corporate headquarters till mid 90s against merely a handful number of professionals at this time

I have recently gotten an opportunity to work closely with a certified accountant, he had all the ingredients to become a proper business manager – however like all accounts, he was finding difficult to deviate from his routine course of responsibilities – that is just to record & present filtered financial data to shareholders, management & of-course the regulators – it means that only data recording is being done

There is no effort in establishing the fact that future is even more tougher, professional expertise wise – services industry has been evolving very fast, giving a totally new dimension to modern day consulting services in order to not just remain sustainable but also come up with innovative solutions – its time all accountancy professionals start thinking like business managers – instead of merely booking expenses & recording revenues, they should grow into a senior role by way of analysing businesses, establish capacity available, its utilization, monitor head count, develop realistic budgets & business forecasts, get into client servicing, so there is 1 window service to the end customer – shareholders & senior managers can be guided beautifully whereby we adopt a mutually acceptable strategy to form the basis of building a sustainable road map – they can either identify capacity & work towards maximizing delivery to gain revenue, other option is to target a particular revenue stream and work backwards to see if there are adequate resources to meet such a target – i would however tend to lean towards the first approach, its being conservative and we remain conscious of our direct costs – second option, on the other hand is being practised by sales driven organizations, but there are serious risks as we must make provisions to pay attached costs in meeting ambitious sales targets

This is a strong case being presented to all accounts as a challenge, there is vacuum, someone needs to get up and be the bridge, fill this gap – as scope of services are endless once we get on this road, seeing future as an opportunity to grow & be appreciated, finally

 

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Independent Service Providers: Double Edge Sword Situation

Being self employed sounds like a dream come true, but like every luxury, one needs to pay the tag price. As much as I advocate independence to our new generation, I always alert them that there are benefits and there are risks and threats. Managing your own business comes with several challenges, such as making sure we pay salaries to our employees in time, getting worried on office bills etc., at the same time we are equally concerned that we get enough clientèle to keep us afloat as our expense meter is not going to stop. It means that the slightest compromise on quality of service, could actually cost us losing the client, so like any 9-5 organization, sustainability remains our top priority, which will only come true, if we start our journey with a strong sense of direction, and the destination we want to reach, meaning we must establish our “values & vision” before we set out foot in the new office

Few things to debate on, could be the fact that it always pay to spend few years working with established firms just to get started, and get focused in respect of creating one’s own niche and personal aptitude as service industry has not just grown, it has evolved into endless branches, and each branch requires utmost care and attention. Another strategy could be to broaden the horizon, we merge talents and start business with a team of individuals as partners, this way we control our risk factors, at the same time we enhance chances to secure more clients and we keep the business afloat even in times of recession

When I say we are walking on a double edge sword, its clear that we have to weigh our advantages and benefits against the risks, and negative eventualities of being in an independent business. Being aggressive with strong sense of responsibility, i would always bet on being my own boss, so its your call at the end of the day, whatever you do, do it right with a lot of conviction so there are no regrets, you have to climb the tree with your bare hands, there is no other way