We talk a lot about delegation on our blog. We encourage it. We think it’s critical to business growth that owners get others involved in the business and they focus on what they do best. I was recently on a listserv where people were asking me for advice on accounting. One of the lawyers told the other lawyer, just farm it out and don’t worry about it.
While the idea of delegating the accounting for a lawyer makes perfect sense, not worrying about it is a mistake. Regardless of what’s going on in your business, you do need to worry about it, particularly on financial matters. There’s a lot of fraud out there. People could be using your information incorrectly. It could be the cause of future problems and huge financial losses. Farm it out, yes. Don’t worry, no. Do worry.
How do you deal with this? How do you delegate and make sure that things are still done properly? It’s called internal controls. It’s a basic accounting concept that you need to have systems and processes in place to give checks and balances, to make sure that no one employee has too much power, to make sure that things are spotted before they become big problems. You’ll want to implement control systems and processes. We’ll visit more about those in future blogs, but the important point is this. Develop the processes and procedures, but don’t trust. Don’t trust completely. Make sure that you know what’s going on in the business and that you as the owner are maintaining responsibility for what happens.
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This posting is intended to be a tool to familiarize readers with some of the issues discussed herein. This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique. Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer Diane Miller.
About the Author
R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment, gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at firstname.lastname@example.org or (214) 418-0258.