Unhappy Holidays for Accountants
I can tell it's the end of the year because nonprofit accountants are quitting their jobs left and right. This happens every year around this time.
Only a week into December I've already had a former client tell me their one accountant just gave notice and a colleague reach out to me to discuss leaving their job to join our team.
What is it about this time of year?
This happens over and over again this time of year. I get a call, or two, or three from colleagues in crisis and nonprofits in crisis.
I’m pretty sure the time of year has something to do with it. While December represents a time of joy and celebration for many, it has different implications for accounting professionals, many revolving around extra stress and pressure:
The second month in a row with fewer workdays to do the work.
Many extra tasks, beyond the monthly routine, related to ending the calendar year and getting ready for the next year.
A reminder that their family and friends expect them to spend quality time with them, creating feelings of shame and sadness when they can’t.
Many coworkers, upon whom they depend to get their jobs done, do take time off for the holiday without completing key tasks the accountant depends on to do their job in a timely way (e.g, expense reports), leading to resentment and frustration.
In other words, December (and January) for accountants becomes a perfect storm of stress, extra work, internal pressure, and external pressure. For the accountant who already felt stretched thin by the monthly routine during the rest of the year, this time of year becomes a breaking point.
The timing of annual budget approval probably comes into play too. If the organization has approved yet another budget without appropriately funding the accounting department, the nonprofit accounting professional can take that as confirmation that things will never improve.
Changing expectations of work
Both of my grandfathers served in WWII. They personal life experience of existential threats and deep experience putting one foot in front of the other no matter what. Although both were their own bosses, they both had highly stressful jobs. One died before his 40th birthday and the other died before his 60th. They, and many in their generation had a work ethic of literally working until it killed them.
Most of my mother’s generation inherited this work ethic and it certainly influenced me for many years. But we’ve all observed, especially since the pandemic, that an increasing number of people have come to expect and demand work-life balance. They don’t want to die at their desks. If their employer can’t or won’t provide balance, they figure they’ll find another job (even if that means saying goodbye to a meaningful mission or relationships with cherished coworkers).
This is a moral and ethical problem
Many nonprofits should consider whether chronically overworking staff aligns with their values. At least some would find, I hope, that no matter how urgent or important their missions, they should not make a habit of burning their staff out in order to achieve it.
This is an economic problem
The cold hard numbers also confirm that these kinds of situations lead to big expenses and missed opportunities for the organizations.
Even everyday standard turnover can cost an organization 50 to 100% or more of the employee’s annual earnings.
In situations when the employee leaves abruptly during the busiest time of year, with potentially large consequences for delays in their work, the cost gets bigger.
And, all too often, key financial processes haven’t gotten documented, making it more difficult and expensive for someone to pick up the pieces afterwards. After all, bad things happen if payroll gets delayed even for a day or two, right?
It isn’t unusual to see the direct expense of these sudden departures exceed $100,000. That doesn’t include other costs like impact to staff morale from losing a valued coworker or late payroll, reputational impact with funders from late reports, and more.
What can financial professionals do about this?
For starters, we financial professionals should advocate for ourselves and for our accounting departments. If we don’t name the pain points and identify solutions, who else in the organization has the skill and first-hand knowledge to do it? Although we didn’t necessarily create the situation, raising the alarm has to begin with us.
Here’s a quick guide with some specific ideas to help you get started.
What can nonprofit employers do about this?
Employers can begin with good communication. Develop a relationship of trust with your accountant(s) and listen carefully to them on topics like their work-life balance, general job satisfaction, and the like. Keep in mind that many accountants, as introverts and as people accustomed to putting their noses to the grindstone, might speak very softly even when they experience great worry and pain. If they tell you their pain level is a 4.5 out of 10, know that many other people would call it a 9.
Then review your staffing. That could include evaluating:
Do you have enough accounting staff to do all the work?
Do you have responsibilities aligned with people’s skills or might someone be in over their head?
Might you need to add new skills to the team (like a Fractional CFO)?
Make sure you have the right tools. If your processes depend on a fax machine or anything paper, you probably have big opportunities to improve staff efficiency by adopting contemporary technology.
Get key processes documented. Tools like Loom and Zoom Clips now make it quick and easy.
Make the investment. Yes, this will cost money. In this case, like the old saying goes, “an ounce of prevention is worth a pound of cure.” This will save significant money in the long-run (and frequently sooner).
Of course, as a nonprofit leader, you may have neither the time nor the skill to confidently evaluate your accounting department, so don’t feel shy seeking third party help to evaluate your situation and identify solutions.
At the end of the day, remember this is about more than getting your accounting staff set up for a happy holiday. This is about ensuring that your nonprofit can deliver on its mission with consistency and excellence; that requires a strong, stable, resilient back office.