July 28, 2020

How to Beat the Odds and Successfully Transition Your Family Business

If you want to find examples of failed family business transition plans, you don’t have to search very hard. Less than 30% of family businesses make it to the second generation, and a small fraction of those make it to third or fourth generations. While the odds may be against family businesses, a successful transition can and does happen with proper planning.

Potential Hiccups When Transitioning to a Family Member

Too often the founder of a family business stays in control too long and doesn’t involve the next generation in management decisions. Disagreements between siblings often arise when the second generation does not have insight into how their parents made decisions and their vision for the future. 

Other times, an unexpected illness or death accelerates the transition time from one generation to the other. The next generation may lack maturity and the skillset necessary to take over the business.

Creating a Successful Plan to Transition

Effective planning and implementation of a transition plan is key to making sure the family business survives and thrives. Future leaders should be designated and developed over time to give them the best chance of taking over the company. There are some steps business owners can take now to create a smoother transition.

Start the Conversation

Identify who will be part of the next leadership group and talk with them about it to make sure they see their future role in the company in the same way you see it.

Put Contingency Plans in Place

If a family member is unwilling or unable to run the business, is there a trusted third-party who can step in to fill the void, at least temporarily? Sometimes an outsourced CEO or other executive-level person can be brought in to fill a gap and help until the next generation is ready.  If you have a relationship with someone you think could fill a role like this, it may be worth discussing it with them now in case they are ever needed.

Begin Stepping Back

Involve the designated successors in decisions and start stepping away earlier than your retirement date so the next generation gets an understanding of what it takes to run the business. They get the benefit of having you available for guidance and support and can start to get comfortable with leading the company with a safety net.

Set Expectations

Establish responsibilities for siblings to help to control future disputes. Disagreements can always happen when siblings have competing goals and different management styles. However, when the first generation can lay out their vision, the sibling disputes can be lessened. Siblings have a plan to follow and can have some ideas to fall back on rather than struggle to find their roles and compete for the best way to move forward.

Put it in Writing

Document strategic plans, key relationships and other information that you know that would help in the transition. If you’re out unexpectedly, these resources can be invaluable and help prevent the successors from learning things the hard way.Planning for the eventual transition of the management of your business is key to the future success of the business. Having open, honest discussions with the individuals who will one day succeed you in the business can give your family business a greater chance of outperforming the current statistics. Anders Business Transition Planning advisors can help your family business configure a personalized plan to transition now or down the road. Contact an Anders advisor below to discuss your specific situation.

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July 23, 2020

Anders Named a 2020 Best Accounting Firm to Work for by Accounting Today

Anders has been named to Accounting Today’s 2020 Best Accounting Firms to Work for list. This is the seventh time Anders has been recognized on the Best Accounting Firms to Work For list of 100 top employers in the accounting industry.

Nearly 250 firms from across the United States entered the two-part survey process to determine Accounting Today’s Best Accounting Firms to Work for. The first part was worth 25% and consisted of evaluating each nominated company’s workplace policies, practices, philosophy, systems and demographics. The second part, worth 75%, consisted of an employee survey to measure the employee experience. The combined scores determined the top firms and the final ranking. Best Companies Group managed the overall registration and survey process, analyzed the data and determined the final ranking.

“The firms on this list represent the best workplaces in the accounting profession,” said Accounting Today Editor-in-Chief Daniel Hood. “They are outstanding places to build a career.”

See the list of 2020 Best Accounting Firms to Work for.

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July 21, 2020

Why Hiring Top Talent Remains a Critical Priority for Every Business

The word “unprecedented” has been used more than ever in the last several months. It has described the rampant spread of the virus, the burden on businesses, the astronomical unemployment numbers and the record number of people working remotely. Businesses have had to shift the way they operate and how they hire and retain employees.

A big push initially was to get companies to retain their staff through Paycheck Protection Program (PPP) loans. Despite those efforts, millions of people suddenly found themselves unemployed. While COVID-19 certainly shook things up, was the economy “unprecedented” even before COVID-19?

Weathering the Storm with the Right Team

Remembering back to pre-pandemic days, the market was incredibly short on talent. Companies were having a real challenge finding skilled talent to maintain the incredible growth and success they were experiencing. Many would say a lot of what was happening then was unprecedented too, such as historically low interest rates, unemployment rates and high demand for goods and services.

Things certainly changed fast, but during that time, we did not magically grow more skilled talent. As we get back on track, customers will come back and companies will need those talented employees again. With the speed of business today, decisions must be made faster in good times and bad. Companies need teams that can help get things done quicker and smarter while being able to pivot at a moment’s notice. The biggest challenge of all may be the fight to find and retain the best people to help weather these fast-moving storms we are likely to see again.

The old model was to lay off and rehire. With a baby-boomer induced short supply, that strategy isn’t an option anymore. It makes more sense to keep the employees you have already trained and developed. Finding and retaining skilled talent should be a higher priority now more than ever.

Finding the Talent You Need

Searching for the right candidate in a sea of resumes can be nearly impossible, especially when you’re focusing on how to get your business past a pandemic. Instead of waiting for your next employee of the month to knock on your door, our talent advisors can bring them to you. Anders Talent works with businesses to make hiring the right accounting person seamless. We can handle everything from interview coordination to offer and acceptance negation and everything in between.

Anders Talent can help you attract and find the best people to match your business’s unique needs. We are in touch with the demand for finance and accounting talent and can help you navigate today’s hiring and recruiting processes. Learn more about Anders Talent or contact an Anders advisor below to learn more.

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July 9, 2020

Dave Finklang Named 2020 Best Accountant in Best in Business Awards

Anders tax partner Dave M. Finklang, CPA/CGMA, MBA was named the winner in the Best Accountant category of St. Louis Small Business Monthly’s 2020 Best in Business Awards.

The St. Louis Small Business Monthly Best In Business Awards is based on an annual reader survey of the best businesses in the region. In 2020, more than 18,000 individuals voted and winners and finalists were chosen in 19 categories. The winning businesses and top finalists will be featured in the 2020-2021 Business Owners’ Guide, SBM’s Book of Lists.

Winners and finalists will also be honored at a special luncheon on October 14.

About Dave Finklang

Finklang has wide-ranging, specialized experience in tax planning and compliance, startup services and consulting, and accounting services. As the founder of the Anders Startup and Entrepreneurial Services Group, Finklang particularly enjoys working with entrepreneurs and emerging companies by helping them raise capital, structure their businesses, implement accounting systems, and minimize their tax burdens. He also advises individuals, family and closely-held businesses, as well as their owners, on tax-saving strategies and tax planning. Finklang works with technology and software companies, manufacturers, distributors, and commercial real estate companies. Before joining the CPA profession, Dave was a commercial airline pilot. This experience helped him build a professional skillset that has allowed him to better serve his clients and his community. Dave was named the youngest 2016 40 Under 40 by the St. Louis Business Journal.

View the full list of St. Louis Small Business Monthly’s Best Accountants.

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