Accounting

Working with ADHD: A toolkit for accountants

Published

1 month ago

September 11, 2024

According to a recent study published in Psychiatry Research, as many as 3.10% adults live with Attention Deficit Hyperactivity Disorder, which is characterized by persistent patterns of inattention, hyperactivity, and impulsivity and can significantly impact various aspects of life, including the workplace.

The accounting profession is no exception. There’s a growing number of accountants admitting they have ADHD and their struggles with the neurological condition. This Reddit thread asking if there were ADHD accountants has over 140 comments, with people sharing their experiences of living with ADHD in accounting.

Furthermore, industry thought leaders like Sabrina, CPA and Blake Oliver, CPA, host of the accounting podcast, have been vocal about their condition, lending credence to the idea that:

1. A good number of accountants have this condition.
2. It’s not a weakness, and it’s possible to thrive with ADHD in a profession like accounting.

In light of all these, we wanted to create a resource to help accounting, bookkeeping, and tax professionals with ADHD. In this piece, we’ll share practical tips and resources to help manage your ADHD and flourish.

Challenges faced by accountants with ADHD

While ADHD has strengths, such as creativity, hyperfocus, high energy, and out-of-the-box thinking, it can also present certain challenges for accountants. Let’s look at them below:

1. Difficulty with organization and prioritization. A study measured the organizational skills of people with ADHD and those without and found the former displayed lower organizational scores compared to the latter. This makes it difficult for accountants with ADHD to stay on top of deadlines, manage multiple projects simultaneously, and maintain a well-organized workspace.
2. Time management struggles. A 2021 research revealed that time perception (e.g., feeling like time is moving faster) is a central symptom of ADHD. An excerpt from the report says, “This problem can lead to significant difficulties in assessing the amount of time that has passed or the amount of time that might be required to perform a specific task.” Ultimately, this results in missed deadlines, rushed work, and increased stress levels.
3. Issues with focus and concentration. By definition, ADHD implies difficulty with sustained focus and concentration. This can be particularly challenging in accounting, which often requires extended periods of intense focus on detailed financial information and complex calculations. Accountants with ADHD may find it harder to maintain concentration in these cases, leading to errors or missing details that could have significant consequences.
4. Sensory overload. While sensory overload (the experience of being overwhelmed by sensory input from the environment) can happen to anyone, it happens more frequently and to a greater extent in the neurodiverse. In fact, up to 60% of cases of ADHD have at least one symptom of sensory processing disorder. This heightened sensory sensitivity can make the typical accounting environment, with its constant background noise, visual stimuli and high pressure, overwhelming for those with ADHD, contributing to feelings of anxiety.
5. Getting easily distracted and bored. Many accounting tasks like data entry, reconciliations, and reviewing financial statements are repetitive and monotonous. Unfortunately, this is a problem with ADHD accountants as they find such tasks boring and struggle to stay on track.

Anton Lewis, an associate accounting professor with ADHD, shared his experience in a piece titled “The Divergent Accountant,” writing, “Having been diagnosed with attention deficit hyperactivity disorder, inattentive type, much later in life explains why my attention to detail often floundered when it came to long, dull, repetitive jobs, typical but necessary of some accounting tasks.”

This trait leads to issues with completing routine but essential accounting tasks.

These challenges can significantly impact the job performance and overall well-being of accountants with ADHD. However, with the right strategies and support, it’s possible to overcome these obstacles and succeed in the accounting profession.

Tips for ADHD accountants

Here are some tips to help you navigate your role as an accountant working with ADHD.

1. Planning and organization. Accountants and bookkeepers need to plan and organize to avoid mistakes, finish work on time, and keep clients happy. With ADHD, organization becomes difficult but not impossible, if you do the following:

Use mind maps and to-do lists with deadlines: Mind maps and to-do lists can help visualize tasks and deadlines. Mind maps allow for a broader overview of projects, while to-do lists with deadlines provide structure and accountability.
Break down large projects into smaller, more manageable steps: Large projects can often feel overwhelming and daunting, which is why you should break them down. According to Jerimya Fox, a licensed professional counselor and a doctor of behavioral health at Banner Behavioral Health Hospital, “Breaking tasks down even further can help you feel more accomplished and the goal more achievable.”
Utilize project management software or apps: These tools can help organize tasks, set reminders, and track progress. Set reminders, create checklists, and use features like color-coding to prioritize tasks.

2. Time management. As explained earlier, people with ADHD experience time distortions, which make them lose track of time and fall behind schedule. You get distracted, and before you know it, the whole day has passed, and you haven’t achieved the tasks you set out to do. But there are ways to combat this. You should:

Set realistic deadlines and time blocks for tasks: Don’t overestimate your capabilities. Set realistic goals and allocate specific time blocks for your tasks. This will help you manage your time effectively and improve your productivity.
The Pomodoro Technique: This involves working in focused bursts (usually 25 minutes) followed by short breaks. It can help improve concentration and prevent burnout. If you need a (free) tool to practice the Pomodoro technique, check out Pomofocus.
Use timers and alarms to stay on track: We’ve already established that you probably experience time faster and don’t perceive time well. So, don’t rely on your intuition to know when to take breaks or transition to another duty. Instead, set timers and alarms to remind you when to start and stop tasks and for upcoming deadlines. Remember, don’t ignore the alarm when it rings. Adhere to it to avoid falling behind.

3. Motivation and engagement. Since accounting tasks can be repetitive, those with ADHD need to find ways to stay engaged and motivated. Here are some strategies for that:

Gamification techniques: Turning work into a game can make it more enjoyable and motivating. (One paper shows that gamified intervention positively impacts people with ADHD). So, use reward systems like treating yourself — no matter how small the reward — after completing a task, or progress trackers to visualize your accomplishments.
Identify and leverage your strengths: Instead of bemoaning the weaknesses of being an accountant with ADHD, you should lean into your strengths and superpower(s). For Andy Muckett, a chartered tax adviser at AKM Accounting Solutions, his ADHD makes him detail-oriented. It also helps him see the things others don’t, think methodically and practically, identify issues others would easily overlook, and spot opportunities that others wouldn’t have considered. In essence, find your strengths and double down on them. This will make you more engaged and productive in your work.

Take breaks and walk around: Short breaks and physical activity (like a brief walk) can help improve focus and reduce boredom. Fidget toys can also help manage restlessness and help you stay engaged during tasks that require prolonged concentration.

4. Collaboration and communication. You’ll often need to work with colleagues, managers, and clients. This means you need great communication and collaboration skills. This might not be your forte, but here are a few things that can help.

Communication strategies for expressing needs and requesting accommodations: First, be open and honest about your disorder and your challenges. Articulate your needs and explain how certain accommodations, like a quiet workspace and certain productivity tools, can help you succeed. Use written communication to document your request and avoid misunderstandings.
Tools for staying on track during meetings: If you tend to zone out, use note-taking apps to capture important information. Also, set reminders for any action items or deadlines discussed to ensure you follow through.
Techniques for managing social interactions: When in social settings, actively listen and avoid interrupting who you’re conversing with. Manage your impulsivity by pausing before responding. Additionally, you can ask clarifying questions to ensure you understand the conversation.

5. Managing sensory overload. To cope with overstimulation, you should:

Adjust workspace lighting and temperature for comfort: Excessive noise, bright lights, or uncomfortable temperatures can contribute to sensory overload. So, experiment with different lighting levels and temperature settings to find what works best for you.
Take breaks to get fresh air and sunlight: Spending time outdoors — even a short walk — can help reduce sensory overload, improve mood, and increase energy levels.
Use noise-canceling headphones or earplugs: Excessive noise can be overwhelming. However, noise-canceling headphones or earplugs can help block out noise and create a calmer work environment. You can also play soothing white noise to improve your focus.

For more, see this list of more than 55 sensory accommodations to try, from neurodivergent psychologist Dr. Megan Anna Neff.

The ADHD Accountant’s Toolkit

Here’s a recommendation of books, templates and courses to help you thrive as an ADHD accountant.

ADHD books (and workbooks)

Forms, checklists and tools

ADHD courses for managing ADHD at work

4. ADHD profiles and success stories

1. “How Sabrina Parris, CPA, balances ADHD and high-pressure accounting demands“
2. “Shahram Zarshenas: From school struggles to CEO success“

Final thoughts

If there’s one thing to take away from this piece, it’s this: ADHD is a neurological condition, not a weakness. With the right strategies (like those outlined in this piece) and support from managers/employers, accountants with ADHD can channel their strengths to become invaluable assets to their firms and clients.

However, you should note that this toolkit is just the starting point. Each individual’s experience with ADHD is unique, and what works for one person may not work for another. So, it’s essential to experiment with different strategies and find what works best for you.

If you’re struggling to manage your ADHD symptoms, seek help from a qualified mental health professional or ADHD coach.

Accounting

IRS PTIN renewal season kicks off

Published

8 mins ago

October 19, 2024

Business Finance News

Preparer Tax Identification Number renewal season is underway for all tax professionals

Tax professionals and Enrolled Agents must have a valid PTIN to prepare any federal tax returns for compensation. PTINs expire on Dec. 31 and must be renewed annually. The fee to obtain or renew a PTIN for 2025 is $19.75.

Current PTIN holders will receive formal notification from the IRS Return Preparer Office in the coming weeks.

Tax pros’ steps for renewal:

Log in your account PTIN account if you have one.
Complete the online renewal application. Verify your personal information and answer a few questions. View a checklist of what you need before starting.
Pay the renewal fee via credit/debit/ATM card or eCheck. Upon completion of your application and payment, you’ll receive confirmation that your PTIN has been renewed.

Most first-time PTIN applicants can also obtain a PTIN online in about 15 minutes.

For a paper renewal, which takes six weeks; fill out Form W-12, “IRS Paid Preparer Tax Identification Number Application” PDF. Mail it with the renewal fee to: IRS Tax Pro PTIN Processing Center, PO Box 380638, San Antonio, Texas 78268.

Accounting

Key Factors for Optimal Bookkeeping Software Solution Selection

Published

1 hour ago

October 19, 2024

Business Finance News

Selecting the Optimal Bookkeeping Software Solution: Key Factors to Consider

In today’s fast-paced, digital environment, businesses have an abundance of bookkeeping software options to choose from. However, not all platforms are equally suited to every organization’s needs. Selecting the ideal software requires thorough research and evaluation to ensure it effectively supports accounting processes, enhances efficiency, and meets the business’s unique operational demands. This article highlights key factors to consider when choosing the optimal bookkeeping software solution.

User Access and Permissions

A critical starting point in selecting bookkeeping software is determining the number of users who will need access. Many software providers structure their pricing plans based on the number of users, making it essential to assess how many employees, accountants, or managers require permissions to view, edit, or manage financial data. This consideration not only influences costs but also ensures that appropriate security settings are in place to protect sensitive financial information. Businesses should prioritize platforms that offer customizable user roles and permissions, allowing access to be granted according to each individual’s responsibilities.

Integration Capabilities with Other Systems

The ability of bookkeeping software to integrate seamlessly with other operational systems is essential for efficiency. Many modern solutions offer built-in integrations with bank accounts, credit cards, payroll software, customer relationship management (CRM) platforms, e-commerce tools, and inventory management systems. Such integrations reduce the need for manual data entry, minimize the likelihood of errors, and enable real-time financial tracking. For businesses that rely heavily on multiple tools, it is crucial to choose bookkeeping software that supports smooth data exchange across platforms to streamline processes and enhance productivity.

Robust Reporting and Financial Statement Generation

Effective bookkeeping software must offer advanced reporting capabilities that align with standard accounting practices and business-specific needs. The software should provide customizable reports that allow businesses to track critical metrics, such as cash flow, profit margins, and accounts receivable. Reporting flexibility ensures that stakeholders—whether internal or external—receive clear and actionable financial insights. Additionally, the ability to generate compliant financial statements, such as income statements, balance sheets, and cash flow statements, is essential for meeting regulatory requirements and supporting strategic decision-making.

Mobile Access and Cloud Technology

As remote work becomes increasingly common, cloud-based bookkeeping software solutions have grown in importance. Cloud platforms allow users to access financial data securely from any location, using mobile devices or web browsers. This flexibility ensures that accounting teams and business leaders can monitor and manage financial information on the go, facilitating faster decision-making. When selecting bookkeeping software, businesses should assess their mobile access needs and choose platforms that offer reliable mobile apps or responsive interfaces that enhance accessibility and collaboration.

Industry-Specific Features

Certain industries—such as construction, nonprofits, retail, and professional services—have unique accounting requirements. For example, construction companies may need to track project-based expenses, while nonprofits must adhere to specific reporting standards. Selecting bookkeeping software with industry-specific features can help businesses reduce the need for manual adjustments and ensure that the system aligns with operational workflows. These tailored functionalities can improve accuracy and efficiency, making it easier to meet both day-to-day and long-term accounting objectives.

Implementation, Training, and Customer Support

Even the most feature-rich bookkeeping software will fail to deliver value without proper implementation and team adoption. Vendors that offer comprehensive implementation support and seamless integration services can make the transition to new software smoother. Additionally, access to training resources—such as webinars, tutorials, and customer support—ensures that employees can quickly become proficient in using the software. Businesses should evaluate the quality of vendor support, including availability of live assistance and responsiveness to inquiries, to ensure ongoing success.

Cost vs. Value: A Balanced Approach

While pricing is an important consideration, businesses should not select bookkeeping software based solely on cost. The goal is to find a solution that delivers the best value by meeting both current and future accounting needs efficiently. In some cases, higher-priced software may offer features or integrations that significantly reduce manual work and increase accuracy, providing a strong return on investment over time. Companies should carefully weigh the total cost of ownership, including subscription fees, implementation expenses, and potential upgrades, against the benefits the software provides.

Scalability and Future Needs

Businesses evolve over time, and their accounting requirements grow more complex. It is crucial to choose bookkeeping software that can scale with the business, accommodating future needs without requiring frequent platform changes. Features such as multi-currency support, automated invoicing, and advanced analytics may become essential as the organization expands. Opting for scalable software ensures that the system remains a valuable tool even as the business grows.

Selecting the optimal bookkeeping software is a strategic decision that requires a comprehensive evaluation of various factors. From user access and integration capabilities to mobile access and industry-specific features, businesses must align software functionality with their operational needs. Proper implementation, along with reliable vendor support and training resources, ensures smooth adoption and long-term success. While pricing is an important factor, the focus should be on finding a solution that provides the most value by streamlining accounting processes and preparing the organization for future growth. By taking a balanced approach to these considerations, businesses can select the best bookkeeping software to enhance financial management and drive success in a competitive marketplace.

Norene

Accounting

Strategies for Effective Financial Record-Keeping System

Published

5 hours ago

October 19, 2024

Admin

Maintaining well-organized financial records is essential for both individuals and businesses. A robust record-keeping system ensures accountability, aids in financial planning, supports legal compliance, and prepares you for unforeseen events. However, without a structured approach, managing financial documents can quickly become overwhelming. This article explores strategies for building an efficient and sustainable financial record-keeping system.

Identify Records to Retain

The first step in developing a reliable system is identifying what documents you need to keep. Regulatory requirements, tax obligations, and future needs will determine which records are essential. Individuals typically retain documents such as tax returns, bank statements, pay stubs, investment reports, medical bills, insurance policies, and purchase receipts for high-value items. Businesses, on the other hand, need to store financial statements, general ledgers, payroll records, accounts payable and receivable reports, W-9s, 1099s, and various tax forms.

Understanding the scope of required records ensures that nothing crucial is missed and establishes a solid foundation for organizing your system.

Develop a Logical Organizational Structure

Once you know what records to retain, the next step is to design an intuitive filing system. A logical structure helps maintain order and makes retrieval quick and painless. For both physical and digital records, it’s helpful to create primary categories such as Banking, Taxes, Assets, and Insurance. Within these categories, you can further divide documents by year or type.

Physical records can be organized using labeled folders, with color-coded categories for quick identification. Digital files should mirror this structure, ensuring consistency across both formats. Using cloud storage platforms with folder hierarchies makes it easy to manage digital records efficiently.

Ensure Security and Controlled Access

Financial records often contain sensitive information, so security must be a priority. For physical documents, consider using a locking file cabinet or a safe to prevent unauthorized access. When it comes to digital records, cloud storage solutions with encryption, multi-factor authentication (MFA), and role-based access permissions offer robust security.

Routine backups are also critical to prevent data loss. Schedule regular cloud backups or store files on external hard drives to ensure recoverability in case of technical failures or cyber incidents.

Implement Processes for Ongoing Organization

Establishing a system is only half the battle—maintaining it requires consistent processes. Introduce habits that encourage the continuous integration of new records. For example, set up a designated bin or tray for physical documents that need to be filed. Schedule weekly or monthly sorting sessions to prevent paperwork from piling up.

Digital records can be managed efficiently with the help of mobile scanning apps, which allow you to upload and store documents instantly. Automating document uploads or using templates for financial reports can also help reduce administrative workload.

Define Record Retention Policies

A well-organized financial record-keeping system includes clear retention guidelines. Different types of records have varying lifespans, particularly when it comes to tax and legal documentation. Tax-related files, for example, often need to be kept for three to seven years, while loan documents and property deeds may require longer retention.

Implement an annual archiving process to remove outdated records and free up space. Be sure to securely dispose of old physical documents through shredding and properly delete digital files to maintain data security.

Review and Update the System Regularly

As business operations evolve or personal circumstances change, your financial record-keeping system must also adapt. Periodically assess the system’s effectiveness to ensure it aligns with current needs. Technological advancements, regulatory changes, or the addition of new financial processes may necessitate updates.

Regular evaluations help you identify inefficiencies, improve workflows, and implement new tools that can further enhance your record-keeping efforts. Staying proactive in maintaining your system ensures it remains optimized over time.

The Benefits of a Structured Record-Keeping System

Creating an organized financial record-keeping system requires upfront effort, but the long-term benefits far outweigh the initial investment. A well-maintained system improves efficiency, reduces stress during tax season, ensures legal compliance, and provides quick access to critical documents when needed. For businesses, an effective record-keeping system supports better financial management and helps avoid costly mistakes, such as missed deadlines or lost receipts.

Whether managing personal finances or business accounts, a systematic approach keeps you in control. By following these strategies, you can establish a financial record-keeping system that is secure, sustainable, and adaptable to future needs. In the long run, the effort invested in building a reliable system pays off with enhanced organization, improved decision-making, and peace of mind.

An effective financial record-keeping system is essential for staying organized, meeting legal obligations, and preparing for the unexpected. By identifying the necessary records, creating a logical structure, ensuring security, and defining retention policies, individuals and businesses can manage financial documents efficiently. Regular evaluations and updates keep the system optimized as circumstances evolve. Ultimately, a well-organized approach to financial record-keeping promotes accountability, compliance, and readiness for whatever the future holds.

Norene