Kula Consulting Blog

Does it sometimes feel that you are always in the close cycle?  Either month, quarter, or year end close?  We believe that must be the case as we hear the following everyday:  “I can’t talk now, I’m in close.”  This is usually said in a hurried, almost whispered voice.  Closing is stressful; we know - - - that’s why we here at Kula left accounting for recruiting!  But, with this economy, it’s a toss-up on the stress meter whether accounting or recruiting is more stressful.  At least accountants still get paid (even if at a “frozen” rate) while recruiters survive on commissions only!But enough doom and gloom.  2009 has been tough for everyone and especially for accounting organizations.  Most companies have done all they can to control and reduce costs, including layoffs, hiring and wage freezes, and reducing or eliminating bonuses or benefits.  But, even in tough times, the accounting work needs to be done and done on time.  Accounting departments have been meeting their reporting deadlines with fewer resources by just gutting it out and working whatever hours are needed to get the job done. But is that the right tact to take for an indefinite period of time?

When you’re forced to think of how you and your teams’ actual work life is experienced during these stressful times, and we know that you’d rather not think about that at all, and only do think about it when forced to, the images are not pretty. You’ll hear about their “real experience” when someone quits and tells you why in their exit interview; when you hear of someone’s family crises that can’t be dealt with because they can’t get away from work, when you’re forced to intervene in overly stressed employee disagreements, or when you hear from your spouse or kids about what you’ve missed or about issues that could have been worked out if only you had been there. This is part of the territory finance and accounting groups have to accept, but not without limits which is the way it is playing out in this cost conscious recessionary culture.

Imagine, if you will, how much of a difference having one additional talented person added to your group in a critical area might do to change you and your teams’ daily experience of work. Not to mention how much less likely it would be that things could blow up, or that key people might leave, etc. The potential benefit of hiring one good but reasonably priced contract employee can make a huge difference in the way your team experiences work and views management’s willingness to try to make a difference for them. Think about running this idea up the flagpole as it makes the same kind of good financial sense as the right insurance policy.

We are starting to see and hear brighter, more positive comments about the economy.  First quarter earnings reports were, for the most part, better than expected, and Q 2 and 2009 outlooks are more encouraging than expected.  Perhaps wage and hiring freezes will start to thaw in the next few months, and accounting departments will be able to reduce the amount of time their staff is on the job.  You may even be able to watch the NBA playoffs live rather than by tivo!

Here’s Kula’s good news for the remainder of 2009:  We have a good supply of bright, talented contract employees available now to help reduce your group’s workload during the close, or to fill-in for the open slots in your accounting organization.  Here’s the best part:  Contract accounting rates are now 30% to 40% lower than 2007 and 2008 rates.  This means experienced SEC reporting help is available at $80 to $90 an hour versus the $120 to $150 an hour last year.  Give your staff a Memorial Day or Q 2 closing present - - bring on some contract accounting help to relieve some of stress of closing.