What Happens When Internal Mfg. Accountants Suddenly Quit?
You’re running a busy manufacturing company and your plate is full of orders, deadlines, and meetings. Suddenly, you receive news that shatters your hopes—your long-time in-house accountant just quit.
Concerns about scalability, futureproofing, and talent shortages flood in. Now, you’re tasked with juggling invoices, incoming shipments, and payroll deadlines, all while the financial reports that help you make company-wide decisions come to a stop.
First, you consider starting from square one with a fresh job posting. Next, you think about contacting recruiters for help finding a replacement. Yet both of these options take time you don’t have. Then, you discover a solution perfect for today, tomorrow, and beyond—outsourcing accounting.
This article explores what happens when an accountant suddenly quits. Let’s explore how outsourced accounting offers financial stability in the face of unpredictability.
What are the challenges of relying on a single internal accountant?
When a single internal accountant departs, it disrupts financial operations and reporting—especially if the exit is sudden. This makes it problematic to ensure a smooth transition and compromises financial stability.
Fluctuations in business make the workload challenging to predict. There may be some periods where a company needs more accountants. When there’s only one person to do the job, there’s a higher chance of accountant burnout.
Accountants are pivotal in managing financial data, ensuring accurate record-keeping, and organizing reports for stakeholders. When they’re sick, on vacation, or quit, disruptions lead to delays in reporting.
In-house accountants have an in-depth understanding of industry best practices and their internal processes, which oftentimes are not documented well or documented at all. Many replacements simply won’t have the same knowledge.
The cost of recruiting and training a replacement is a substantial expense. Identifying a qualified candidate, conducting interviews, and onboarding takes time and resources.
Accountants have a unique understanding of the industry and the company’s financial health. Losing this insight hinders decision-making and long-term financial planning.
How dangerous is it to depend solely on one accountant?
When a single accountant is responsible for all financial matters, it’s easier for errors or fraudulent activities to go unnoticed. This opens the door to financial losses, legal complications, and reputational damage.
It also leads to missed opportunities. A sole accountant doesn’t have the capacity to innovate solutions or quickly adapt to changing market conditions. If a manufacturing company can’t pivot quickly, it results in missed profitability and growth.
There is also the strain on other team members to fill in the gaps. When the sole accountant is overloaded or absent, other team members must help with accounting tasks. It’s counterproductive and diverts the focus from core responsibilities.
The consequences extend to the broader operational aspects of the organization, too. With a single accountant, there may be a lack of financial data and insights. This results in suboptimal resource allocation, mismanagement of assets, and operational inefficiencies—and risks losing market share.
Additionally, relying on one accountant can decrease consumer confidence. Suppose financial reporting is delayed, inaccurate, or unavailable due to the absence of the accountant. It erodes trust in the organization and jeopardizes business.
Why should manufacturers consider outsourcing their accounting?
Businesses should consider outsourcing their manufacturing accounting for a variety of reasons.
One critical factor is in-house accountants quitting or retiring. This situation creates a significant gap in an organization’s financial management. To mitigate this risk, manufacturers outsource accounting, ensuring continuity and expertise regardless of internal changes.
Hiring an external partner with manufacturing expertise gives you access to a team of experts rather than individuals. An outsourced team offers skills at different levels instead of relying on a one-man band.
Outsourcing futureproofs the company, offsetting potential pitfalls from internal changes related to wage stagnation, failed salary negotiations, or layoffs in accounting. The business remains agile and adaptable, ready to navigate transitions skillfully.
What are the benefits of outsourced accountants in manufacturing?
Scalability is a key advantage of outsourcing accounting services. Manufacturers can easily adjust their accounting support, whether they need to scale up or down. This flexibility opens the door to scaling rapidly without burning through resources, hiring, and training new team members.
Furthermore, accountants are becoming harder to find. Forbes reported that the number of accounting graduates continues to decline after peaking in 2012, and 47 percent of AICPA members are baby boomers and are retiring in record numbers. Outsourced accounting gives you an edge in a market with fewer professionals entering the field.
Outsourcing accounting services is more economical than in-house accounting. By outsourcing, manufacturers reduce overhead costs, such as salaries, benefits, and training expenses.
Gaining specialized knowledge tailored to manufacturing needs is why companies should consider outsourcing. Firms with manufacturing experience understand the industry’s unique challenges. They can provide insights, strategies, KPIs, and reporting designed to propel your manufacturing businesses forward.
Why is Chortek ideal for smaller manufacturing companies?
Chortek is the ideal choice that manufacturing companies might need to learn about.
Accountants from Chortek have a deep understanding of the manufacturing industry, making them well-equipped to handle the financial challenges that manufacturers face.
A standout feature of Chortek’s is the company’s vast knowledge of manufacturing ERP (Enterprise Resource Planning) software.
“Our accountants understand manufacturing ERP software inside and out. That means when an issue pops up in your financials, we can help problem-solve and troubleshoot all the way back into your ERP software.”
—Rick Sovitzky, Head of Outsourced Accounting & Advisory Services at Chortek LLP.
This expertise is priceless for problem-solving and troubleshooting issues in a company’s financials. The peace of mind that comes with Chortek’s support is a game-changer.
Knowing their financials are in the hands of experts who understand their industry allows business leaders to concentrate on reaching their goals.
When an in-house accountant suddenly quits a manufacturing company, it risks bringing your production to a screeching halt. It leaves you in a challenging position because you face a personnel gap, financial instability, and operational hiccups.
Relying on a single accountant can be a ticking time bomb, leaving you vulnerable to errors and lost opportunities. Outsourcing accounting offers a versatile and cost-effective fix.
Chortek brings manufacturing industry-specific expertise to the table and takes the stress off your shoulders. Whether you’re growing or optimizing, our approach keeps your manufacturing business running smoothly, no matter what internal changes come your way.
Contact us to learn more about why Chortek is your ideal outsourced accounting partner in manufacturing!