Article by Shagun Malhotra, Founder of SkyStem LLC
Corporate finance and accounting teams play a pivotal role in the financial health and sustainability of any business organization. They are entirely responsible for managing a company’s finances, while also ensuring compliance with regulatory standards, and not forgetting the fact that they also provide essential financial insights to support strategic decision-making.
However, we occasionally overlook their efforts, assuming they can handle the company numbers while the rest of the company focuses on what is perceived as “more important” tasks. This is not the case. Accounting and finance teams have a huge impact beyond just their job descriptions; they are super important for maintaining good company morale, which keeps employees engaged means they are 41% less likely to be absent.
We need to be careful to make sure that the widespread issue of burnout doesn’t hit these professionals too hard, given that a majority of employees experience burnout due to work-related stress. On top of that, the industry is also experiencing a difficult time with many graduates across Asia and around the world choosing not to enter the field. And yet, in the Asian market, the demand for accounting professionals remains at an all-time high.
Let’s look at why accounting teams are so vital within a company and the question of maintaining their and the company’s morale.
Accounting team’s impact and how to recognize their efforts
It often goes under the radar how integral finance teams are to a company’s operations—research by the International Federation of Accountants (IFAC) indicates that businesses with strong accounting expertise see improved decision-making and resource management.
They also interact with every department on a regular basis. Whether it be payroll processing or expense reporting, finance teams need to be on top of all transactions and records in a timely manner, and their morale has a huge impact on the rest of the company. On top of that, their responsibilities are enormous, and so low morale can lead to mistakes and delays in reporting to other departments.
Unfortunately, finance teams are not always the most content at work. According to a survey by the Chartered Institute for Securities & Investment, 31% of finance professionals feel uncomfortable talking to their manager about mental health issues, and a further 23% are unsure whether they would ever discuss happiness in the workplace.
A recent study found that 83.6% of accounting employees believe recognition directly impacts how motivated they feel at work. Giving praise and celebrating achievements are surefire ways to build appreciation and keep the team pushing towards new targets. There are so many different ways you can recognize an accounting team’s efforts, but a few might include additional time off, financial bonuses, flexible opportunities, and even personal messages can make a huge difference.
Flexibility and adaptability for high-value work
Cash flow is what keeps a business alive, and accounting teams have their defibrillators ready to resuscitate a business at a moment’s notice. Accountants are entirely responsible for keeping abreast of income and any expenditures so that a company has enough liquidity to stay afloat. Additionally, they deal with late payments and negotiations with clients and vendors, which can also be pivotal to a business’s future.
With that kind of weight on their shoulders, it’s no wonder that accounting is seen as a stressful job. In fact, 32% of accountants feel stressed, and 41% have considered resigning as a result. The mental health of these professionals is crucial. Accountants need manageable workloads and plenty of opportunities for breaks. They should be allowed flexible work schedules and encouraged to completely disconnect outside of the office so that when they are working, they can remain focused on important deadlines.
Opportunities for growth
Despite their importance, as we’ve discussed above, accountants can be overlooked when it comes to career opportunities, which can contribute to low morale and disengagement. Having clear pathways for development through training opportunities and the option to take on leadership roles can keep the best talent available on board. A recent LinkedIn study highlighted how companies with strong career development programs see a 34% higher retention rate. It’s clear that for accounting and finance professionals, career growth opportunities are a key factor in job satisfaction and performance.
By investing in an accountant’s future, you show that you believe in their potential. Providing them with various ways to improve soft and hard skills through training is a great way to stay on top of career development, and it might even be crucial, depending on the circumstances. For example, the introduction of a new digital tool into an accountant’s toolbox, such as a new bookkeeping software in the department, could cause chaos if the finance team doesn’t have the training to use it properly. This could cause big issues and add to any potential stress and confusion that might already exist.
Final thoughts
Accounting and finance teams are the backbone of any company operation and their morale is vital to a company’s success. When these teams feel supported and appreciated, they are more likely to stay motivated, engaged, and productive. Companies need to recognize their contributions, provide opportunities for growth, and support their mental health in order to create a positive work environment that reduces turnover in the industry and improves performance.
Ultimately, investing in your accounting and finance teams benefits not only the individuals themselves but also strengthens the organization’s overall stability and success.
This article includes a client of an Espacio portfolio company
