[et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”3.22″][et_pb_row admin_label=”row” _builder_version=”4.4.3″ background_size=”initial” background_position=”top_left” background_repeat=”repeat”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.9.0″ hover_enabled=”0″ sticky_enabled=”0″]<\/p>\n
Lately, I\u2019ve been doing some reflecting on my career <\/span>in finance and accounting<\/span>. As I look back, I can identify 4\u00a0<\/span>phases that\u00a0<\/span>reflect<\/span>\u00a0my unique journey<\/span>\u00a0from fixer to leader and<\/span>\u00a0manager.<\/span> In this blog post, I\u2019ll detail these phases and hopefully <\/span>provide some clarity through comparison to your own journey. <\/span>\u00a0<\/span><\/p>\n In the beginning,\u00a0<\/span>I<\/span>\u00a0<\/span>remember being hired\u00a0<\/span>by a small start-up company<\/span>\u00a0on a temporary assignment. My boss was the interim CFO who explained to me that he had a board meeting coming up and needed a Balance Sheet. I was surprised by the\u00a0<\/span>request,<\/span>\u00a0<\/span>wondering how\u00a0<\/span>it is<\/span>\u00a0possible that their accounting system could not produce the most fundamental\u00a0<\/span>and essential\u00a0<\/span>statement. It turned out that<\/span>\u00a0the<\/span>\u00a0previous CFO, although a\u00a0<\/span>well-qualified<\/span>\u00a0Chartered Accountant, had\u00a0<\/span>initiated<\/span>\u00a0an accounting system conversion and had lost control of the process.\u00a0<\/span>Reports could not be provided to the bank, vendors were not being paid, bank statements were not reconciled to the G\/L<\/span>,<\/span>\u00a0etc.\u00a0<\/span>As such, the company did not know if it\u00a0<\/span>was<\/span>\u00a0making a profit, if it\u00a0<\/span>would have<\/span>\u00a0enough cash to meet payroll or if it had the capacity to borrow to grow the business as was its mission.\u00a0<\/span>\u00a0<\/span><\/p>\n I remember spending the weekend solving the problem of the Balance Sheet.\u00a0<\/span>O<\/span>ver<\/span>\u00a0<\/span>a\u00a0<\/span>hundred accounts in the chart of accounts had to be tagged and grouped with precision otherwise the financial statements<\/span>\u00a0<\/span>would not\u00a0<\/span>balance nor\u00a0<\/span>would they\u00a0<\/span>convey the true<\/span>\u00a0financial<\/span>\u00a0state of the company<\/span>.\u00a0<\/span>\u00a0<\/span><\/p>\n I learnt early on that th<\/span>e\u00a0<\/span>skill<\/span>\u00a0to convert and integrate an accounting system<\/span>\u00a0<\/span>was<\/span>\u00a0not taught at any professional school\u00a0<\/span>i.e.,<\/span>\u00a0CPA<\/span>\u00a0or<\/span>\u00a0MBA<\/span>. However,\u00a0<\/span>it<\/span>\u00a0is<\/span>\u00a0<\/span>critical<\/span>\u00a0enough that<\/span>, if not\u00a0<\/span>done<\/span>\u00a0properly,<\/span>\u00a0<\/span>the financial control of a<\/span>ny<\/span>\u00a0business\u00a0<\/span>comes\u00a0<\/span>to a grinding halt.<\/span>\u00a0This phase I would call the\u00a0<\/span>\u201cDeveloper<\/span><\/i><\/b>\u00a0<\/span>Phase\u201d.<\/span><\/i><\/b>\u00a0<\/span><\/p>\n Soon after\u00a0<\/span>this experience,\u00a0<\/span>the company\u00a0<\/span>hired\u00a0<\/span>me as<\/span>\u00a0the controller. As the company grew<\/span>, so did<\/span>\u00a0the volume of information.\u00a0<\/span>My understanding of the<\/span>\u00a0accounting software<\/span>, having been involved with it during the development phase<\/span>,<\/span> allowing for a<\/span>\u00a0hands<\/span>–<\/span>on approach to process<\/span>ing<\/span>\u00a0information<\/span>\u00a0efficiently and effectively<\/span>. The skills needed at this\u00a0<\/span>phase were different from the \u201cDeveloper phase\u201d<\/span>. To process the ever-increasing information, there was a need\u00a0<\/span>to multi-task,\u00a0<\/span>maintain a<\/span>\u00a0high\u00a0<\/span>level of\u00a0<\/span>energy<\/span>\u00a0<\/span>and<\/span>\u00a0focus<\/span>,\u00a0<\/span>and always<\/span>\u00a0look<\/span>\u00a0<\/span>for<\/span>\u00a0opportunit<\/span>ies<\/span>\u00a0to increase efficiency<\/span>. I would call this the\u00a0<\/span>\u201cDoer phase\u201d<\/span><\/i><\/b>.\u00a0<\/span>Again<\/span>,<\/span>\u00a0the skills\u00a0<\/span>for this phase had\u00a0<\/span>to be gained through experience<\/span>.<\/span>\u00a0<\/span><\/p>\n The company continued to\u00a0<\/span>grow,<\/span>\u00a0and the accounting department expanded. The \u2018doing\u2019 skills had to be replaced with<\/span>\u00a0management\u00a0<\/span>skills\u00a0<\/span>such as<\/span>\u00a0delegating, mentoring<\/span>,\u00a0<\/span>motivating<\/span>\u00a0and communicating<\/span>.<\/span>\u00a0These skills were developed during my\u00a0<\/span>\u201cManage<\/span><\/i><\/b>r<\/span><\/i><\/b>\u00a0phase\u201d.<\/span><\/i><\/b>\u00a0<\/span>\u00a0<\/span>Without these skills<\/span>,<\/span>\u00a0<\/span>a<\/span>\u00a0once highly effective \u2018doer\u2019<\/span>\u00a0often<\/span>\u00a0<\/span>does<\/span>\u00a0the tasks\u00a0<\/span>themself<\/span><\/i>\u00a0<\/span>in<\/span>\u00a0<\/span>order to<\/span>\u00a0maintain the high standard\u00a0<\/span>they had\u00a0<\/span>achieved.\u00a0<\/span>Delegation is no<\/span>n-existent or sporadic.\u00a0<\/span>The negative effects of this approach include personal stress, demotivation of staff,\u00a0<\/span>lowering of standards, department<\/span>al<\/span>\u00a0<\/span>bottlenecks<\/span>\u00a0and the exposure\u00a0<\/span>of\u00a0<\/span>the\u00a0<\/span>department<\/span>\u00a0to<\/span>\u00a0not be<\/span>\u00a0able to<\/span>\u00a0<\/span>function properly\u00a0<\/span>in\u00a0<\/span>their<\/span>\u00a0<\/span>absence.<\/span>\u00a0<\/span><\/p>\n Over the year<\/span>s,\u00a0<\/span>the company expanded nationally through an aggressive acquisition strategy.\u00a0<\/span>Almost half\u00a0<\/span>of my time was now spent travelling across the country <\/span>doing\u00a0<\/span>due diligence, meeting with owners,\u00a0<\/span>lawyer<\/span>s<\/span>\u00a0and bank<\/span>ers<\/span>, and dealing with integration challenges at the home office. I call this<\/span>\u00a0the<\/span>\u00a0<\/span>\u201cPlanning and Leadership phase\u201d<\/span><\/i><\/b>. I no longer had the time to manage hands-on but now required\u00a0<\/span>\u2018surveillance reporting\u2019\u00a0<\/span>that would allow me to maintain tight controls\u00a0<\/span>over the<\/span>\u00a0large volume of information<\/span>.<\/span>\u00a0It was also necessary to devise concise higher-level reports that identified \u201chotspots\u201d and that met strategic planning needs.<\/span>\u00a0<\/span>The focus during this phase was on transparency.<\/span>\u00a0By proper<\/span>ly<\/span>\u00a0structuring reporting<\/span>,\u00a0<\/span>it<\/span>\u00a0is<\/span>\u00a0possible to<\/span>\u00a0navigate through a large volume of information and<\/span>\u00a0maintain a high level of control\u00a0<\/span>over it<\/span>.\u00a0<\/span>\u00a0<\/span><\/p>\n Now, o<\/span>ver 25 years later, th<\/span>is same<\/span>\u00a0company is now Canada\u2019s largest physiotherapy company with over 2,500 highly trained clinician<\/span>s<\/span>\u00a0in over 300 locations<\/span>\u00a0across the country<\/span>