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Team vs. family | Accounting Today

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My nine-year-old daughter likes to play a game with me called: “Will you still love me, if?” I’m not sure how many more years we can play this game, but for now it’s pretty innocent. For instance, my daughter will ask me if I’ll still love her if she doesn’t do her homework or clean up her room or play nicely with her younger sister. As always, my response is: “Yes, I’ll still love you more than anything because I’m your dad.” It’s unconditional. We’re family.

I bring this up because in the intense war for talent in our industry, more and more firms are calling themselves a family. I think this can be dangerous. Maybe for some firms this is an intentional decision, and “family” is the word they want to use. But trust me, the specific words you use for firmwide communication matter a great deal.  As long as you understand the implications, great. So, let’s talk about what that means.

There are three important ways that work teams may be different from your family: 

The distinction comes down to purpose, expectations and commitment.

1. Purpose

The purpose of a family is to provide emotional support and unconditional love to kin. 

The purpose of a team is to accomplish an objective. If you’re the Kansas City Chiefs or Dallas Cowboys, the purpose of the team is to win football games. If you are a professional services firm, the purpose of the team is to provide exceptional professional advice to your clients so they can make better financial decisions. It’s not about providing people with unconditional love or making them feel good about themselves. 

2. Expectations

Expectations of a family: It doesn’t matter what family members do or say, the expectation is that they will always be loved. As a family member, you can always feel free to be yourself without judgment from your parents and siblings.

Expectations of a team: When you join a team, you will be (or should be) given clear expectations about what it takes to stay on the team. The expectations are more regimented. Each team member must be accountable. Each team member must honor deadlines and hit deliverables that help the team accomplish its purpose. Families generally don’t ask underperformers to leave, but teams do.

3. Commitment

Family commitment is unconditional. There is nothing my daughter can do to cause me to deny her unconditional love. I’ll always be her dad. It’s a lifelong commitment. 

Team commitment is more transitory. Sometimes you join a team for a certain reason. For instance, when starting your career, you may join a firm or team as an intern to gain a certain kind of work experience. It doesn’t mean you have to stay there for your entire life — it’s not your family. As you go through your career, you’ll find that certain firms, certain places and certain teams are good for you at a certain stage in your life. But then you reach a point that you may need to find a different team as you evolve.

If the purpose of your current team doesn’t align with what you’re trying to do, you don’t have to remain committed to staying with them. That’s why teams sometimes let go of their team members, and that’s why team members sometimes leave their teams. Their purposes are no longer aligned. If you’re clear about your purpose, you’re going to attract the right people, and you’re going to “graduate” the people who are no longer the right fit for your team. 

Language sets the tone

When you’re thinking about the language that you use at your firm, it’s important for every single person to know they’re part of a team. The team has a specific purpose that it’s trying to accomplish. That purpose should be clear to everyone on the team. Everyone from senior leadership to admin staff should have specific expectations about how they’re supposed to contribute to the team and help it achieve its strategic purpose. It doesn’t center around making everyone on the team feel good, although many people on well-run “championship” teams do feel inspired. It’s about meeting expectations.

For more about the importance of nuanced language, see my recent article Are you selling toothfish or sea bass?

In many workplaces, teammates develop relationships just like they do on sports teams. They become great friends and sometimes start to feel like family. The challenge is that people sometimes end up on a team to which they are no longer aligned, but they feel obligated to stay on a team out of loyalty. Or sometimes the team feels obligated to keep a team member on the payroll because they’re getting the concept of team and family confused. 

Work is not your family

If a teammate calls you on a Sunday when you’re out with your family, do you take the call and keep your family waiting? Do you invite them to come over to the house all the time? No, you probably don’t. That person is not part of your actual family. You shouldn’t take their call like you would from a family member late at night. There need to be boundaries, and failing to establish those boundaries can be detrimental to your team, and your family.

You need to have those important conversations and ask, “Are we aligned in our purpose? Do we have clear expectations? Are we committed to the growth of the firm? Are we aligned with committed expectations and purpose?”

Again, the purpose of a family is to nurture each other and provide emotional support and unconditional love. There’s no time limit on that. It’s forever. The purpose of a team is to accomplish its stated objectives by having the right people in the right seats at the right stages of their career. Teams must constantly reassess their lineup and depth chart.

If you feel you are aligned with your team’s purpose and are clear on the expectations, then it makes sense to stay if you feel you are growing. Otherwise, you need to think about moving to another team where you feel there’s better alignment between your respective goals and purpose. You are, after all, a free agent. Families don’t have free agents.

How are you keeping your team aligned with your firm’s expectations and purpose? I’d love to hear from you.

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Accounting

How to Maintain a Fixed Asset Register for your business

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A well-maintained fixed asset register is a cornerstone of effective financial management for any organization.

A well-maintained fixed asset register is a cornerstone of effective financial management for any organization. Often underestimated, this detailed inventory of a company’s tangible assets goes far beyond an accounting requirement—it’s a vital tool for enhancing financial accuracy, operational efficiency, and strategic decision-making. In this article, we’ll explore the significance of a fixed asset register and how maintaining it can propel business success.

At its core, a fixed asset register is a comprehensive list of all significant physical assets owned by a business. This typically includes property, equipment, vehicles, machinery, and other long-term investments. However, its true value lies in its ability to provide insights that extend beyond simply cataloging assets.

Ensuring Accurate Asset Valuation
One of the primary functions of a fixed asset register is to maintain accurate asset valuations. By updating the register to account for depreciation, improvements, or changes in market value, businesses can ensure their financial statements remain precise and in compliance with accounting standards. Accurate valuations not only inspire stakeholder confidence but are also crucial for meeting regulatory requirements.

Implementing Asset Tagging and Tracking
A robust tagging and tracking system is essential for an effective fixed asset register. Using technologies like barcodes, RFID tags, or GPS tracking for mobile assets minimizes the risk of theft or loss and simplifies the process of physical verification during audits. This level of control provides added security and reduces the administrative burden associated with managing assets.

Leveraging Fixed Asset Management Software
Specialized fixed asset management software can streamline the maintenance process significantly. These tools automate depreciation calculations, generate detailed reports, and even forecast maintenance requirements. By leveraging such technology, businesses can save time, improve accuracy, and enhance operational efficiency.

Reconciliation and Financial Consistency
Regular reconciliation between the fixed asset register and the general ledger is essential to maintain consistency in financial records. This practice helps detect and resolve errors or discrepancies promptly, ensuring financial reports are reliable and up-to-date.

Aiding Strategic Decision-Making
A well-maintained fixed asset register is an invaluable resource for strategic planning. It offers insights into asset utilization, helps determine when replacements are necessary, and supports forecasting for capital expenditures. Businesses can make data-driven decisions that maximize the return on their capital investments and enhance overall operational efficiency.

Supporting Insurance and Disaster Recovery
For insurance purposes, an accurate fixed asset register is indispensable. It ensures that all assets are adequately covered, simplifies the claims process, and plays a critical role in disaster recovery scenarios. In times of crisis, having a detailed record can make the difference between a swift recovery and prolonged disruption.

Conclusion
A meticulously maintained fixed asset register is more than a compliance requirement; it is a strategic advantage. It embodies financial precision, operational control, and informed asset management, enabling businesses to operate more efficiently and make better decisions. By prioritizing the upkeep of this essential tool, finance professionals and business leaders can foster resilience and drive sustainable growth.

Properly managing a fixed asset register not only strengthens day-to-day operations but also positions an organization for long-term success in an increasingly competitive business landscape.


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Accounting

In the blogs: Just in time

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BOI is back; phantom stocks; continuous compliance; and other highlights from our favorite tax bloggers.

Just in time

  • Tax Vox (https://www.taxpolicycenter.org/taxvox): Who benefits and who loses from extending major provisions of the Tax Cuts and Jobs Act?
  • Taxing Subjects (https://www.drakesoftware.com/blog): The Republican party can shape legislative priorities for the next two years, setting the stage for long-term policy changes. A downloadable resource offers a breakdown of key policy areas and action steps for tax pros and small businesses. 
  • AICPA & CIMA Insights (https://www.aicpa-cima.com/blog): How the IRS and tax pros can both start prepping for any government shutdown.
  • Eide Bailly (https://www.eidebailly.com/taxblog): “Just in time for the holidays,” a federal appeals court has restored the Corporate Transparency Act requirement for businesses to disclose their beneficial owners.
  • Taxable Talk (http://www.taxabletalk.com/): And just like that, yet again, with an injunction’s stay, course is reversed.
  • Current Federal Tax Developments (https://www.currentfederaltaxdevelopments.com/): At least they extended the deadlines a whisker.
  • The Tax Times (https://www.thetaxtimes.com): The IRS continues to claw back from non-filers, to the tune of 10 figures and counting.
  • The National Association of Tax Professionals (https://blog.natptax.com/): Favorite headline of the week: “The best gifts for the tax pro in your life this holiday season.”
  • National Taxpayer Advocate (https://www.taxpayeradvocate.irs.gov/taxnews-information/blogs-nta/): “‘Twas the night before tax season, and all through the land; Tax professionals were working, each with pen in hand; The forms were all sorted with numbers just right; who says tax accounting can’t thrill and excite?”

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Accounting

H&R Block releases Santa Claus’s tax return

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That doesn’t look like a 1040 … .

H&R Block has given the world just what it wants to see this holiday season: Santa Claus’s tax return.

Santa has a lot of itemizations to consider. Eight tiny reindeer depend on him for food and shelter, for instance, but are they dependents? How much can you give to one person before reporting it? Does Santa keep good mileage records for his 41.5 million miles? Santa isn’t an employee, so compensation (even in cookie form) over the threshold may create a 1099-NEC.

Old St. Nick, who files MFJ with Mrs. Claus, did all right on 1040 Line 34, but some of his numbers do bear examination: 6.3 million cookies and 2 million gallons of milk means a third of a gallon of milk per cookie. Will the deduction of coal, magic dust and sleighbells stand up to audit? At least Santa has plenty of time on his hands between January and April to find a good preparer.

Santa's tax return

“Even the jolly man in red takes time to report taxes,” reads the announcement from the tax prep giant. “He’s probably the world’s most famous small-business owner, running a gift-giving workshop and distribution network across the globe … Santa is giving us the first ever peek at his tax return and showing us how he used H&R Block Online and AI Tax Assist to get his maximum refund.”

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