Art Of Accounting: System Changes

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Systems run a business, not people. People run the systems. Without good systems and compliance, most businesses will have as many systems as there are people. Think about any successful franchise, with McDonald's, Subway and Jersey Mike's coming quickly to mind. None of these could be successful without a system that is followed by everyone everywhere every time . And the people working there follow the system because they have to. Now, let's compare this to a CPA practice or any service business.

Most service businesses and particularly CPA practices employ highly intelligent knowledgeable staff who usually know how to get their work done; and unless they are at the lowest level, they do not need much supervision on most of what they work on. The problem comes with supervising and training younger level staff and also higher level who aspire to move up to the next level and then on from there. Systems need to be established for every level regardless of the technical expertise required to get the services successfully performed.

Making system changes means making changes. This only is accomplished if the firm leaders are committed to improvements. Yesterday's methods must have worked quite well to bring you to today but cannot be relied upon to bring you past today into the many tomorrows that will come.

Do not hesitate to contact me at emendlowitz@withum.com with your practice management questions or about engagements you might not be able to perform.