Category

Corporate Culture

Jun 24
0

Encouraging Diversity in the Accounting Profession

By | Accounting, Corporate Culture, Nonprofit | No Comments

For several years, we’ve written about the current and expected shortage of senior-level accounting professionals. This accounting employment crisis may get worse before it gets better, especially for nonprofits seeking to attract and retain top talent. And, while we have talked about neurodiversity and how to accommodate neurodiverse individuals, we haven’t talked about the elephant in the room everyone is tiptoeing around: the lack of diversity in the accounting profession.

Try it. Ask several people to tell you what they think an accountant looks like. Chances are good it’s a middle-aged white man in a gray suit seated behind a desk. He’s Mr. Bland or Mr. Everyman.

diverse group of people working together

But he’s not really Mr. Everyman, is he? He represents just a small fraction of the rich diversity of people on this planet: the black, the white, the brown-skinned, and others. And of course, he represents only 50% of people, since there are many amazing female accountants as well. I’m one of them.

Unfortunately, diversity and inclusion in the accounting profession is lacking. And, until we examine what causes it, and take conscious steps to fix it, we’re going to keep finding Mr. Bland behind the desk…covering six jobs, because there won’t be enough accountants to fill the vacancies.

The Accounting Profession’s Talent Shortage

The AICPA 2025 trends report found that there was a 12.4% increase in the number of accounting students; however, the year before, there was a 6.6% decline in graduates compared to prior years. This suggests that some progress has been made to increase the number of newcomers to the profession, but we still have work to do.

What more should we do? Should we go to college and career nights, handing out flyers and extolling the glories of debits and credits?

Although that could be fun (and just might convince one or two people to give the accounting major a second look), colleges typically spend time and effort recruiting for “hot” careers and majors. STEM careers get a lot of attention, but accounting is often included among business school majors and is not pushed as much as other mathematics-based professions.

Hidden Biases Keeping People Out

However, no amount of college night guest speakers will encourage people to enter the profession if they don’t feel welcome. Diversity and equity programs are winding down, often to the detriment of hiring practices. Many people feel that accounting is a profession dominated by white males (Mr. Bland, anyone?). It’s a hidden bias that can keep many talented young people from declaring an accounting major and progressing in a field that rewards talent and hard work.

Inclusion goes beyond the college experience. CPA Journal reports that students often felt corporate internship experiences were uncomfortable due to the lack of diversity among other corporate accountants. Feeling out of place, like you don’t belong, is often the motivation to change jobs or professions. The more people feel included and valued, the more likely they are to remain and contribute.

The Way Forward

I don’t have a magic wand to fix the accounting profession, although sometimes I wish I did. Instead, I’d like to offer a few words of encouragement to students considering a career in accounting.

First, this is a stable career. AI is offering great efficiencies, but a smart accountant must be behind the keyboard working with AI to get things done the right way. There will always be room for newcomers to this profession, with a good career path forward, advancement opportunities, and significant income potential.

Next, we need to consider diversity and inclusion in your hiring practices. Yes, DEI mandates were sunsetted by the current administration. That doesn’t mean you can’t encourage your hiring managers to be inclusive and seek candidates with diverse backgrounds and experience. It’s up to you, as leaders of your organizations, to speak to your HR department if you don’t see that happening and encourage them to include more diverse candidates in the hiring pool.

Build a truly inclusive culture at your organization. Provide visible role models for newcomers to the profession. Be welcoming, not just with words, but also with your actions.

We may not be able to solve the national talent shortage, but we can solve cultural problems within our own organizations. By helping people feel welcome, giving them a place at the table, and encouraging them to use their gifts, we can improve retention rates and make a dent in the accounting talent shortage.

Welter Consulting

Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact us for more information.

Jul 15
0

The Ever-Evolving Role of the CFO

By | Corporate Culture, Nonprofit | No Comments
Chief Financial Officer (CFO) holding meeting.

Among all top-level jobs in an organization, none is quite as dynamic as that of the Chief Financial Officer (CFO). What was once a position defined by its role managing the company’s finances is now a job at the intersection of people, technology, plans, and yes, finance. Here’s what’s changing and why in the role of the CFO, and how many CFOs are responding to these challenges.

Addressing Talent Shortages

We’ve written at length in previous articles about the talent shortage in the accounting profession. Fewer college students are pursuing an accounting degree, and even fewer are obtaining their CPA.

To address this talent shortage, CFO are increasingly turning to AI to handle manual and repetitive tasks. According to one Deloitte report (cited in CFO Dive), 8 in 10 CFOs stated they plan to use AI to bridge the skills gap. This saves time for existing staff, who can then fill in some of the gaps caused by the talent shortage.

Consolidating Technology

As you can imagine, the scarcity of candidates to fill key accounting roles forces CFOs to do more with fewer people. In addition to AI platforms, CFOs are increasingly turning to technology to tackle more tasks and reduce stress.

Although adding platforms is possible, some find that separate platforms increase, rather than reduce stress. Task switching, or moving between different tasks or tech platforms, can lead to fragmented concentration and reduced attention spans, both of which can negatively impact performance and efficiency.

One way to fix this issue is to upgrade existing platforms so they are all-in-one. Another option is integration or ensuring that data flows seamlessly among platforms. If considering a technology upgrade, the CFO should estimate future needs and anticipate scaling up as needed over time. This may require consultation with an expert who can help you weigh the pros and cons of various finance platforms.

The Changing Role of the CFO

CFOs have traditionally been the financial managers of their companies. But today’s CFOs may be actively involved in technology purchases, recruiting and hiring, and revenue opportunities through sales and marketing collaborations. It’s not unusual for CFOs to be asked for advice on price setting, discounting, and similar tasks that were once delegated to others. CFOs are rapidly becoming the overall financial advisors for their companies, whether it involves revenue generation, price setting, marketing management, or technology purchases.

Consider the Present and Plan for the Future

When it comes to technology spending – either adding AI tools or upgrading existing financial management systems—it’s vital to consider the present but plan for the future. That’s often easier said than done. But for the CFO, it’s increasingly important to lead the technology discussions to ensure that finance has the support it needs to be productive.

It can be challenging to estimate technology needs in the future when no one is certain what may come next. AI is evolving so rapidly that it seems that if you blink, you’ll miss an update. But good leaders know that the time to act is before there’s a crisis. Acting now to address talent gaps, evolving roles, and technology needs is the smart way to go.

Welter Consulting

Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact us for more information. 

May 09
0

What You Need to Know About Executive Orders

By | Corporate Culture, Nonprofit | No Comments
Executive Orders

While President Trump may not have signed the most Executive Orders out of all U.S. Presidents (that honor goes to Franklin D. Roosevelt), he has certainly made headlines with a flurry of orders limiting funds to various organizations, including institutions of higher learning and organizations funding nonprofits. If you are following the news closely, you know that it can be challenging to sort myth from fact when it comes to the impact of Executive Orders. Here, we sort through how these orders impact nonprofits, and what the President can—and cannot—do with the stroke of a pen.

Executive Orders Cannot Limit or End 501(c)(3) Status

One persistent myth is that the President, via an Executive Order, can limit or end an organization’s 501(c)(3) status. This is definitely a myth; the IRS governs 501(c)(3) status, and any changes to the rules regarding this must pass through a vote of Congress.

So, although the president may limit funds designated for organizations, he cannot strip that organization of its nonprofit status for any reason, including its adherence to diversity, equity, and inclusion policies.

DOGE May Investigate Nonprofits Receiving Federal Funding

Another rumor circulating in the nonprofit world is that DOGE, or the Department of Government Efficiency, may begin investigating nonprofits that receive federal funding. This is unproven but could potentially be true in the upcoming months.

Blocks on Grants to Organizations That Focus on International Issues

Washington State has a high percentage of nonprofits that focus on international issues. There are rumors that the President will sign an Executive Order blocking funding from such organizations. If your organization’s mission encompasses such work, it is vital to watch the news and watch for any such orders that may impact your work. You may also wish to get involved now to make your feelings known (see the end of this article for action steps you can take to make your voice heard).

Orders Targeting Specific Nonprofits

Other orders may be coming that target specific nonprofits, including those linked to climate change activities and specific organizations named by the President, such as the Gates Foundation, the Ford Foundation, and others.

What You Can Do

If you are reading this and researching other Executive Orders that may impact your organization, you may feel frightened or helpless. What can you do to protect your organization, its funding, and its mission?

You can take several steps:

  • Sign an open letter to the President: Coordinated by the National Council of Nonprofits, Public Citizen, State Democracy Defenders Fund, Leadership Conference on Civil and Human Rights, ACLU, and Americans Against Government Censorship, this letter states unequivocally that the President should not have the power to punish nonprofits based on ideological beliefs. You can find the letter here: An Open Letter Rejecting Presidential Attacks on Nonprofit Organizations.
  • Contact Your Congressional Representative: You can contact your representatives and make your feelings known about the impact these Executive Orders may have on the non-profit sector and your organization. Find Your Representative.
  • Prepare Now: Watch this video and read articles such as this one from the Nonprofit Quarterly on how nonprofits can prepare for changes due to Executive Orders.

It is unfortunate that nonprofits must prepare for situations in which their livelihood may be threatened, but this is the reality we are dealing with. Now is the time to understand the rapid changes at the government level and take steps to prepare for any potential impacts on your organization.

Welter Consulting

Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact us for more information.

Oct 09
0

From Number Cruncher to Strategic Leader: How Modern CFOs Are Mastering Cross-Functional Roles

By | Accounting, Corporate Culture, Nonprofit | No Comments
person at desk crunching numbers between printouts and laptop

Although the duties and responsibilities of the CFO and the finance team may appear to be the same on paper, in reality, they are rapidly evolving. Today’s finance team works across multiple disciplines and functional areas to provide cross-functional support for human resources, IT, sales, operations, and customer care centers. The reality is that financial leaders need to better understand a broad range of business disciplines to provide expert leadership and guidance for their organizations.

Why the Role of the CFO and Finance Is Changing

A McKinsey survey demonstrates the broad range of roles reporting to the CFO. These roles include everything from procurement to investor relations. More important than the breadth of the roles is the fact that the depth is changing too; it’s not just reporting lines but interaction that is increasing. The CFO must now be conversant in everything from the organization’s digital strategy to how it procures supplies.

This change reflects the growing awareness that in business, nothing occurs in isolation. Many factors contribute to an organization’s ability to make margin. Increasing margins may mean increasing gross revenues (while holding expenses steady) or it may mean decreasing expenses (while maintaining gross revenues). To help improve the organization’s revenues, for example, the CFO and finance team must understand the nuances of each service and program area, what is delivered, to whom, and the prices charged. All of this used to be the sole domain of either the program manager, the marketing manager, or both, but today, the finance team must understand it as well, to add to the conversation and provide guidance.

Cross-Functional Finance: How Finance Interacts with Each Department

Here’s why finance has become the cross-functional “go to” team—and why the CFO and finance leaders must work across teams with each department. Here are three examples:

  • Human Resources: Salaries and benefits are often the biggest expense on the balance sheet. Therefore, it makes sense to consult with finance when discussing staffing. Understanding both current and future plans, as well as the skill sets needed now and in the future, are all conversations that finance should be part of from the start.
  • IT (Technology): IT used to make all the decisions about the platforms the company needs but when choosing a nonprofit accounting platform, finance should be actively involved in the process, along with representatives from other departments. Additionally, the potential for financial data to be exposed in a data breach is a shared concern of both finance and IT. The two departments must work closely together on IT plans, continuity planning, cyber security defenses, and more.
  • Sales and Marketing: The finance team can help sales and marketing assess the profitability of donor campaigns. They can also provide added insight into pricing, budget allocation, and other areas.

Other departments, including customer service and operations, can also benefit from finance’s inputs.

Preparing Your Cross Functional Finance Team

To prepare your department to become a cross-functional finance team, you’ll need to make some adjustments. During the hiring process, look for applicants who may have cross-discipline skills. Such experience indicates an applicant with a flexible approach to finance, one who may already have ideas about how to collaborate with their counterparts in other departments.

Next, pave the way by making time for higher-level, collaborative work. This means using the automations built into your current accounting and finance platform (or looking for new software that includes these features). AI offers excellent potential to automate many tasks, including preparing first drafts of financial statements and audit reports. Automatic routing of messages, invoicing, approval notifications, and similar repetitive tasks can also save considerable time. Work with your team to determine which routine tasks take up the most time and which can be automated. This will free up time for more cross-functional collaboration.

Although there’s no one-size-fits all approach to the role of the finance team, CFOs and financial department personnel form an important leadership group within an organization. Their knowledge of financial data, combined with business acumen, can guide an organization into new areas of growth and potential.

Welter Consulting

Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact us for more information.