So, you're thinking about working for a family business?

If you're a management accountant working in a family business, you don't need me to tell you that family businesses offer a unique set of challenges for the accounting professional. When family and business matters mix or overlap, it can add a new set of problems to be handled. Accounting professionals working in family businesses need to be prepared to face these issues by trying to protect the interests and concerns of the business while negotiating the complexities of family dynamics.

Most of the problems you'll face involve a blurring of the boundaries between family and the business. Common problems include:

• The family closely integrates with the business, and disagreements cross the family/business boundary.
• Familial relationships are relied on instead of business relationships, so company hierarchy is ignored or nonexistent. This can result in a lack of clearly defined roles and lots of crossover within positions.
• Family members regularly mingle business and personal expenses.
• Non-family staff members may begin to think of themselves as family and regularly step "out of bounds" or expect perks of the family. These staff members see the lack of hierarchy and may disrespect family members that are above them on the organizational chart.

If you are an accounting professional working for family business, you need to be ready for and have plans for these challenges should they arise. How you do so can vary depending on whether you're a member of the family or not.

For an excellent article written by a tenured Management Accountant about the challenges you'll face and how to tackle them, reach out to me. Bottom line - expect conflict and always document.

If you're currently in an accounting role for a family business and would like a free consultation on how to overcome challenges, succession plan, build a healthy employee culture, and more - reach out to me today!

-Cole

[email protected]