Background:
MarksNelson provides outsourced accounting services to clients. This allows clients to leverage insider expertise without the need for a full-time in-house Controller.
The Challenge:
Employee departures can create a strain on the current employees, owners, and the overall business. A handful of our construction clients have experienced these employee departures in their accounting personnel.
One challenge employers are facing is a competitive job market. A few factors have created a strain on the market for accounting personnel which include key accounting personnel retiring and a smaller pool of new graduates available for hire. According to the American Institute of CPAs, 75% of certified public accountants are retiring or close to retirement in the next 15 years. This reduction in the pool of available candidates makes finding replacements difficult.
Retirement of construction accounting personnel is not only creating a shortage of accounting personnel available for hire, but they are often taking years and even decades of accounting knowledge (specifically construction related) with them. This specialized knowledge takes years to develop. Because construction accounting is unique; finding talent that has prior knowledge of construction accounting can be difficult to find in an already small pool of talent.
Turnover is another challenge clients face. Because of the competitiveness in the current job market this has led employees to seek the job that has the most benefit for them personally, causing more turnover than usual. Over 300,000 U.S. accountants and auditors have left their jobs in the past few years, leading to a 17% decline in overall industry employment, according to the Bureau of Labor Statistics.
The Solution:
Augmenting client accounting personnel with MarksNelson personnel has helped our clients meet these challenges.
Experienced professionals can step in until a quality replacement can be found. Because the pool of qualified candidates is difficult to find, finding the right person may take time. MarksNelson was able to step into these situations and provide experienced staff to assist a client in the interim until a suitable permanent replacement could be found. Because of the level of experience our internal team brings, business as usual can continue and there isn’t a major strain on daily functions, delivery of monthly financials, and related financial consultation.
Finding a replacement for a prior Controller or high-level accountant can be unattainable or may no longer suit a client’s needs. When finding the appropriate level of experience is too difficult, clients are often able to find and hire lower-level staff (1-2 years of experience) with relatively no construction experience. MarksNelson has been able to step into these situations and help supplement the knowledge of inexperienced hires with a higher level of construction accounting knowledge. This staff augmentation can help fill a Controller level hole left in a business, while growing an internal accountant that currently lacks the experience.
The Result:
Business can continue as usual without the need for internal accounting staff to work longer hours to compensate for the missing employee. Timely Financial Statements continue as well as any other reporting such as quarterly payroll returns, sales and use tax returns.
Our involvement also eases the pressure of the hiring process. Instead of seeking candidates with years of industry-specific knowledge, businesses can bring on new, eager-to-learn personnel. Our team can supplement their learning on the job, helping them to grow within the organization while ensuring high-level accounting functions are expertly handled.
Additionally, we bring fresh perspectives and valuable suggestions to operations. Whether it's allocating indirect expenses, advising on equipment usage, setting up a monthly dashboard identifying key figures, or making accrual adjustments, we are proactive in providing actionable insights.
MarksNelson has successfully helped multiple clients with accounting personnel turnover successfully navigate their financial picture until suitable replacements could be found or new accounting personnel could be trained.
MarksNelson Advisory, provides the following outsourced accounting services:
- Process and payment of vendor invoices
- Reconcile bank and credit cards on a monthly basis
- Maintain fixed asset and depreciation records
- Maintain general ledger including recording transactions and
- reconciling balances
- Prepare financial statements and management reports
- Analyze financial results and communicate with management
- Consult on cash flow management
- Assist with documenting and implementing accounting policies
- and procedures
- Provide strategic consulting services
- Prepare personal financial statements
