The 4 Key Roles For Your Accounting Team

Sup everyone,

Today, I want to chat about something that's pretty important as your business grows: beefing up your accounting team.

I want to lay down some clear metrics so you know what to expect as your team gets bigger.

 📢 Before we dive into the nitty-gritty of accounting details, I wanted to share something exciting that I'm starting to offer: Consultation Services tailored specifically for the Home Service sector.

Here's a quick rundown of what I can help you with:

1. Acquisitions: Navigating the process of acquiring new companies.

2. The First 90 Days: Guiding you through the crucial initial period of owning a new company.

3. Growth Strategy: Developing strategies to scale your business effectively.

4. Hiring Strategy: Building efficient and sustainable hiring processes.

Now, let me give you a glimpse of what to expect on a monthly basis:

• Tailored Support: You set the agenda! We focus on what matters most to you and your business.

• Personalized Assistance: Enjoy scheduled weekly 1-hour phone calls for in-depth discussions. Need quick advice? You'll have unlimited texting access for those pressing questions. Plus, we're here for additional calls whenever you need guidance on specific topics or questions.

I want to emphasize that I only work with a select number of individuals at a time. My goal is to build lasting relationships through this offering and provide you with the personalized attention and support you need to thrive in the Home Service industry.

Now, Let’s Get into Some Accounting Deets For Your Home Service Biz!

Now, when you're just starting out, maybe pulling in under 3-5 million, you probably have a bookkeeper or an office admin handling your financials. Maybe you outsource it, get someone to put together your numbers and handle your bills, bank deposits, and such.

And that's cool for a bit, but as you start raking in more dough and your financial needs get more complex with reports, projections, and budgets, it's time to level up.

So, here's the scoop on who you'll need as you hit that sweet $20 million mark:

1. The Controller
   
   First off, let's talk about the big shot, the controller. This person's like the head honcho of your accounting crew. Most companies under 50 mil don't need a CFO, just a solid controller.
   
   They keep your books clean, make sure everything's closing on time, and handle projections and budgets like a boss. Plus, they're in charge of the rest of your team. Ideally, you snag a good controller early on in your growth journey.
   
   Now, a lot of businesses hesitate here because the paycheck for a controller can be hefty, sometimes even rivaling the owner's salary at that point.
   
   But trust me, it's worth it. Get this role right, or it'll hold you back big time down the line. They're the ones steering the ship in your accounting department every day.
   

2. Accounts Receivable Clerk
   
   Next up, we got the accounts receivable clerk. Accounts receivable is exactly what it sounds like. You did work, you sent an invoice and someone owes you some money.
   
   They're the ones chasing up those invoices, making sure folks pay up on time, and handling any accounts that might be at risk.
   
   They’re consistently communicating and sending to collections when needed. It's all about keeping the cash flowing smoothly.
   

3. Accounts Payable Clerk
   
   Then there's the accounts payable clerk. They handle what you owe your vendors, making sure invoices match up, job costs are tracked, and payments are scheduled.
   
   It's a big deal, and you definitely don't want to lump this in with accounts receivable. That's a recipe for trouble and could potentially create fraud in that type of situation.
   
   A lot of companies, due to budget or size tend to combine this position with AR, but it's a huge point of failure for businesses because you're giving one person control of both. Money in and money out and that's a pretty big problem.
   

4. Payroll Clerk
   
   Last on the list is the payroll clerk. When you're pushing 80 to 100 employees, payroll can become a full-time gig. They're the ones making sure everyone's getting paid what they're owed, sorting out hours, commissions, and all that jazz.
   
   You want someone who's going to be fanatically focused on getting the details right because payroll is not something you want to make a mistake with.

So, those are the key players you need in your accounting squad as your business grows. You're looking at building out that team more solidly around the $10 million mark.

Controller, AP clerk, maybe have the controller handle AR at that point. Then, as you climb into the $15 to $20 million range, start bringing on the AR clerk and the payroll clerk.

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Cya,
John Wilson

You know I CANNOT end without mentioning something about my fav topic: marketing. ❤️

First, shout out to Service Scalers because they’re the 💣

⭐️ Now’s the best time to onboard with Service Scalers. Gear up and get ready to take advantage of when search demand is through the roof! They take the stress out of managitng PPC, LSA, and SEO on your own. Schedule a call if you’re ready to take your growth to the next level.

⭐️ Second, check out this awesome video that Jack Carr did about running TikTok ads for your Home Service Business. Learn how and why TIkTok should be a part of your lead gen strategy: ⬇️

The Owned and Operated newsletter and podcast by John Wilson brings the best HVAC, plumbing, and electrical growth podcast information to business owners looking to grow, scale, and win big. Visit us at www.ownedandoperated.com.