Resource planning and management are key factors to a successful business strategy, and flexibility ensures that your planning efforts are effective even when the unexpected happens.
A well-thought-out resource management plan is crucial to success in asset management and property development. Identifying, estimating, and assigning the necessary funds and finance staff needed to complete a project within the time, and budget constraints, are all determining factors to a higher return on investment. A realistic and flexible resource management plan can help avoid overloading, underutilizing, or wastage of resources, as well as cope with changes and uncertainties.
The Significance of a Well-Thought-Out Resource Management Plan
In today’s rapidly evolving Real Estate business landscape, flexibility in human resource management puts your business at a competitive advantage because it is a huge challenge to quickly add new staff to the team whenever a need arises. However, through fractional accounting, it is easier to adjust your staffing levels as needed and reallocate resources to different projects at any given time.
Completion of tasks on time
Due to the massive pressure in the Real Estate industry to run expansion projects, sometimes concurrently, CFOs are constantly on strict budgets and under pressure to meet deadlines for presentation of financial projections to stakeholders. They also have to communicate the performance of different funds, and should be able to respond quickly and accurately to any requests from these stakeholders.
To help alleviate this pressure, it could be beneficial to have a flexible finance team, where you can assign as many people or as little as you need, on any particular project. Through fractional accounting, tasks can be completed way ahead of time. This makes project management easier because the finance team can present cash flow projections in time, for decision makers to decide on which projects to take on.
CFOs have other time sensitive tasks like month-end close, that should be complete within a specific time period into the month. For a smoother month-end close, prerequisites need to be completed on time hence the need to have additional capacity to help speed up the process and later assign the additional staff elsewhere.
Accuracy
During periods when there is an increase in demand for properties, there is a larger volume of cash flow to be accounted for. This can put pressure on your team because they are now stretched too thin, with more work than they can handle, resulting in burn out if there is no immediate action taken to acquire additional capacity. Burnout is a prerequisite for errors in accounting and it has a negative effect on the overall accuracy of your financial results.
Hiring new staff to help your team is a long and stressful process that will not quickly cover the gap in your department and having the finance team continue to work under pressure leads to biased accounting reports and forecasts. Accuracy in accounting is a key factor for CFOs to gain trust from stakeholders and avoid bias in decision making, from relying on inaccurate projections. Stakeholders also need to have confidence in the finance team and the reports they present, to be able to confidently make sound decisions on whether or not to invest, dispose or develop properties, for maximum payouts.
Maximum productivity
Your whole team can handle so much, but when stretched too thin, productivity drops. Due to an increase in workload, your team faces a challenge of multiple deadlines to complete different tasks, necessary for reporting. It is typical for workload to increase when your business is facing rapid growth and when there are opportunities to acquire, develop or manage more properties.
An increase in cash flow volumes can diminish productivity causing deadlines to be missed, unless there is help in time. However finding the perfect candidate can take a while and in that time, your team is being buried further into mounting spreadsheets and missed deadlines.
Through fractional accounting, CFOs can quickly have people assigned on their team to help with completion of tasks ahead of time, whenever there is an increase in workload. At this rate, more investment projects can be completed in time to get more financial returns. In which case, flexibility can be a great source of higher return on multiple investments, leading to greater success.
Cost efficiency
Flexibility in staffing can help minimize costs on the entire budget and fractional accounting allows you to scale up and down as you need. You only pay for the billable hours unlike having a fixed cost of full time staff which you incur regardless of downtime and leave. It is therefore cost efficient to cover only the cost of capacity you have utilized leaving you with excess funds to channel towards other crucial areas of the business.
The flexible staffing model by Bright Balance Accounting
Flexibility plays a critical role in resource planning, and it’s essential for businesses to be able to quickly adjust their plans when necessary, in the face of intense competition. Bright Balance Accounting seeks to help businesses in the Real Estate industry to maximize productivity and cost efficiency with our flexible staffing model.We understand the importance of flexibility in resource planning, and therefore take a personalized approach for all our clients to achieve their goals.
We offer a wide range of fractional accounting services that meet the unique needs of each client, and we’re always ready to adjust our engagement as needed. Our team of experienced professionals has worked with businesses of all sizes and in a variety of industries, and are committed to providing the highest level of service to each client. Whether you’re a small developer/realtor just starting out or managing a large Real Estate corporation with complex accounting needs, we have the flexibility and expertise to help you achieve your goals.
