Outsourcing

Article Dean Dorton

The line between finance and IT gets blurrier by the day. What’s crystal clear, however, is that accounting and finance departments require tech like never before. Everything from routine accounting to strategic finance runs better with technology – and runs worse without it.

Which puts a lot of pressure on the tech stack to perform. No single solution is a panacea. The combination of tools and capabilities encompassed by the tech stack determines, to a large extent, the effectiveness of the professionals who depend on it. It can be an asset that generates insights, sparks innovation, and multiplies productivity. Or it can be an obstacle that causes errors, uncertainty, and inefficiency.

For CFOs and the teams they lead, fine-tuning the tech stack is perhaps the single biggest priority right now. No two tech stacks will look exactly alike because it’s crucial to customize the contents based on the needs of users. That said, there are best practices everyone should follow:

  • Digitize everything – A tech stack is meant to address all the work done by accounting and finance departments, all under one umbrella. Any process or paperwork that hasn’t been digitized yet is overdue for an upgrade.
  • Automate extensively – The speed and scale of modern finance makes it imperative to remove manual-processes from the equation. Look for ways to automate how data gets recorded, integrated, and analyzed. The tech stack should do the heavy lifting of data management.
  • Minimize Excel – Spreadsheets will always be a part of accounting, but Excel should never be the centerpiece of the tech stack. Work to move anything that relies entirely or partially on Excel into a system that’s both technologically superior and equipped for high-level accounting and finance.
  • Expand capabilities – The tech stack shouldn’t replicate the status quo in digital form. Rather, it should improve and expand upon existing capabilities, empowering accountants to do things they couldn’t do before.
  • Think strategically – A tech stack should reflect the strategic priorities of the accounting and finance department, and, by extension, the company as a whole. Select pieces to add or subtract based on how they contribute to strategic objectives.
  • Pick a platform – The term tech stack implies verticality, but it’s better to think horizontally. Instead of stacking tools on top of one another, look for solutions that integrate the widest number of capabilities onto a single platform, becoming the “hub” for all things accounting and finance.
  • Choose confidently – Fine-tuning the tech stack isn’t the same as tinkering. There can be real consequences for adding the wrong tools to the mix. Therefore, it’s vital to feel confident that any addition will make an impact that’s immediate, lasting, significant, and quantifiable.

One final best practice: Partner up. Even when following best practices, perfecting a tech stack isn’t easy without abundant experience and expertise – exactly what the team at Dean Dorton is here to provide. Contact us to get your tech stack right.

Justin Hubbard, CPA, CGMA | Accounting and Financial Outsourcing Director
jhubbard@deandortonstg.wpenginepowered.com
859.425.7604

Article Dean Dorton

The Covid-19 pandemic challenged every assumption in healthcare. Systems that were supposed to be redundant and resilient were pushed to the breaking point and beyond. Problems that seem unthinkable became realities, one after another after another. No matter how the pandemic affected a healthcare provider, all of them think differently in the wake of it.

We can expect swift and sweeping changes as a result. Preventing a repeat of recent events will be the industry’s top priority. Every facet of healthcare will respond to this mandate in their own way, but none will ignore it. Continuing with the status quo represents too great a risk.

What will the new normal look like? Expect outsourcing to play a much greater role, especially in healthcare accounting and finance.

Why Outsourcing Make the Most Sense
Without receiving much notice, healthcare accounting teams were some of the hardest hit during the pandemic. They had to deal with a financial crisis that appeared out of nowhere while adapting to sudden remote work requirements and unpredictable staff shortages. Arguably, everything that could go wrong did go wrong.

Most teams adapted admirably and kept their organizations afloat through unprecedented difficulties. Nonetheless, it’s clear that most teams aren’t equipped for the next pandemic in terms of staff, technology, visibility, or expertise. Complicating matters even more, adding these missing pieces requires time, money, and other resources that are in short supply right now.

Outsourcing offers a shortcut between what healthcare accounting teams have and what they need. Outsourcing partners can introduce cloud-based accounting systems that facilitate remote work. They can step up to handle routine accounting obligations whenever necessary or deliver specialized financial insights on demand. They can also free up the in-house accounting team to focus on urgent objectives or long-term initiatives.

The new normal calls for healthcare accounting teams to be agile, informed, and robust. Building out those capabilities in-house involves a huge cost and a complicated, time-intensive effort. But not with outsourcing. Any healthcare accounting team plus the right outsourcing partner equals an elite unit prepared for whatever the future holds, good, bad, or unexpected.

Healthcare Accounting After Outsourcing
The greatest argument for outsourcing, especially under the present circumstances, is that it insulates accounting teams from uncertainty. Teams have whatever resources they need to keep the financial situation stable in the midst of chaos. They run on technology that makes powerful capabilities and the entirety of financial data available from anywhere. And they have a partner to consult with on the most complicated and critical financial questions of the day.

A tidal wave of change was already headed towards the healthcare industry before the pandemic started. Outsourcing increasingly looks like the best – even only – way to say ahead of this transformation. Prepare for the new normal sooner rather than later by contacting Dean Dorton.

Justin Hubbard, CPA, CGMA | Accounting and Financial Outsourcing Director
jhubbard@deandortonstg.wpenginepowered.com
859.425.7604

Article Dean Dorton

Halfway through 2021, there are millions of jobs available and millions of people out of work. So why are employers across industries having such a hard time filling vacant positions? Opinions vary, but a few factors appear to be depressing the labor market.

Caring for sick relatives and supervising kids home from school is keeping many people from returning to the labor force. Continuing fears over the pandemic also play a role, especially for older employees who elected to retire. Elevated unemployment benefits may diminish work incentives as well. Regardless of the cause, the effect is clear: The labor force is approximately five million people smaller than at the pre-pandemic peak.

Labor shortages affect some industries worse than others right now, but hiring is becoming harder across the board. Some companies have accepted ballooning labor costs to aid with recruiting efforts. Others have concluded that the skills they need simply aren’t available, leaving a necessary position unfilled indefinitely. Today’s tight labor market has made everyone think hard about recruiting, retention, and talent development. After all, if companies can’t find the workers they need, the pandemic recovery could take longer than anyone wants.

It may be time for companies to think differently about how they bring experience, expertise, and productivity into their ranks. Recruiting is one option, but there’s another.

Outsourcing in the New Normal
Labor shortages are happening at the same time that companies are embracing remote work and automation like never before. Workplaces are evolving, and having a huge staff of people in the same office doesn’t seem as mandatory as it once did. Outsourcing was made for this moment.

Outsourcing can help companies overcome short-term hiring challenges. If the local talent pool lacks the specialized skills a company needs or can’t supply enough qualified candidates to meet growing workloads, outsourcing can fill that gap on demand. Outsourcing professionals distinguish themselves through the depth and diversity of talent they offer, helping clients take on the biggest recurring responsibilities or the most complex special projects – all without recruiting headaches or the cost of a full-time hire. But doesn’t outsourcing mean shipping my company’s needs overseas? While that may be the first thing that comes to mind, there are many professional services firms locally, regionally, and nationally that have the right expertise to meet your expectations and help your organization succeed.

Take accounting, for example. Accountants were in short supply even before the pandemic. That hasn’t changed, and companies need the oversight and input of smart financial professionals most of all during periods of robust economic activity like now. Outsourcing delivers exactly that. No matter what a company sees on the horizon, outsourcing keeps the accounting capabilities aligned with the business requirements. The labor market doesn’t matter when there are accountants available on demand through the right partnership. Outsourced accountants can handle a single project, take over an ongoing workload, stand-in for an entire accounting department, or serve as CFO. Unlike the labor market, outsourcing with a professional partner promptly supplies exactly what the you need.

Make sure that accounting accelerates the recovery effort instead of slowing it down. Contact Dean Dorton to outsource the missing pieces.

Justin Hubbard, CPA, CGMA | Accounting and Financial Outsourcing Director
jhubbard@deandortonstg.wpenginepowered.com
859.425.7604

Article Dean Dorton

First generation family foundations are founded on a gut-level need to give back. Founders are energized, motivated, and actively engage in the construction and inner workings of their vision. This direct participation generally leads to the launch of a very successful family foundation, one that makes a measurable difference in the greater world.

Many founders realize the importance of engaging the next generation but this focus is primarily and very rightly on the philanthropic impact of the family foundation. The mundane aspects of operations are downplayed or their transition is procrastinated. Without intent, successive family members are oftentimes left to navigate these and many other administrative essentials without a guide:

Board Meetings
Like all nonprofit organizations, family foundations must designate a governing board with officers. The board must hold meetings at least annually and whenever action requires a vote. States have varying rules regarding whether or not meetings must be held in person and your foundation’s bylaws should also address the format that constitutes a meeting. Minutes should be taken to document the occurrence and legitimacy of the meeting as well as any formal action that was approved by the board.

Tax-Exempt Registration
Most states require private family foundations to renew their exempt status within the state on an annual or bi-annual basis. This renewal may require the payment of a fee and/or the submission of a specific report. Failure to comply could jeopardize the favorable tax-exempt status of your foundation and its ability to continue philanthropic work.

Accounting & Tax Records
Maintaining the financial integrity of the foundation requires that gifts are acknowledged in writing using prescribed IRS wording, even if the gift is received from a member of the governing board. Documentation should also include the maintenance of accounting records and completion of annual tax filing. Payment of awarded grants should be properly issued and changes in investment activity appropriately recorded and reconciled.

Many family foundations choose to forego the employment of staff, so responsibility for these tasks fall by default to a member of the board. An alternative option to ensure best practice management and compliance is through collaboration with a subject matter expert. An experienced certified public accountant or legal professional focused on private family foundations could fill these gaps and free your family to focus on the impactful mission that motivated that first generation.

To learn how Dean Dorton could help your organization, click the link below:

Learn More

Kaydee Ruppert, CPA, MSA
Nonprofit Accounting and Financial Outsourcing Manager
kruppert@deandortonstg.wpenginepowered.com • 859.425.7730

Article Dean Dorton

Accounting & Financial Services Outsourcing Trends

As many as 80% of small businesses plan to outsource finance and accounting services in 2021. Whether to access specialized expertise, handle large-scale workloads, or facilitate growth, companies increasingly see outsourcing as a solution to every problem. The rapid growth of outsourcing is just one of many notable trends happening right now. Here are several more that reveal what accounting and financial outsourcing can add to a company:

  • On-Demand Expertise – The lines between outsourcing and consulting are starting to blur as firms take on more complex, customized accounting challenges. Having access to a deep bench of accounting experts gives a client access to all the resources they could ever need to answer any question or meet any deadline.
  • Turnover Security – Companies are using outsourcing in response to the talent shortage in accounting. When a company loses an accountant, finding a replacement isn’t fast or easy. Outsourcing fills in for that absent accountant, immediately and for however long is necessary, so that everything continues in stride.
  • Agility to Evolve – Outsourcing firms are helping companies respond to disruptive events like the pandemic and the turbulent economy. As accounting needs change – suddenly, unexpectedly, and in sweeping ways – outsourced accountants can adapt while in-house staff focus on the future of the business.
  • Real-Time Visibility – Having accurate, comprehensive, up-to-the minute insights matters for any business, but it takes work. Outsourcing firms are now doing that work and delivering top-quality data back to clients to make real-time visibility into financial performance a reality.
  • Tax Help – The leading outsourced accounting firms include tax prep and advisory among their core services. Clients don’t have to go elsewhere for tax help. And by relying on the same firm that handles some or all of their financials, they create synergy between tax prep and accounting.
  • Budgeting and Forecasting – Complex budgeting and forecasting are good examples of the expanded menu of services that today’s outsourcing firms offer. For companies without the time or resources to handle these critical yet complicated workloads on their own, outsourcing firms can put world-class accountants in charge of the effort.
  • Performance Dashboards – Dashboards collect key performance indicators (KPIs) in one place then update them in real-time so that decision-makers always have the best information at their disposal. In addition to everything else outsourcing firms are now doing, they can set up and maintain dashboards for clients eager to act based on insight rather than intuition.
  • Cloud Migration – Working out of the cloud looks more important than ever after the pandemic. Outsourcing firms make the migration easy by handling the technical, financial, and operational considerations all at once. This is the easy, reliable way to migrate.

Outsourcing can do almost anything for a business. Most importantly, it can do this: Free up decision makers to focus on operations and growth instead of accounting, aided by the best financial insights available. What could outsourcing add to your enterprise?

Follow the link below to learn more about Dean Dorton’s Accounting and Financial Outsourcing Services:

Learn more

Justin Hubbard, CPA, CGMA
Accounting and Financial Outsourcing Director
jhubbard@deandortonstg.wpenginepowered.com • 859.425.7604