Episode 24: Efficiency through letting go of doing everything yourself, with Damian Scodella

In this episode Sam interviews Damian Scodella, the Founder and Managing Director of Square Penny. Damian and Sam discuss what Square Penny does and what they most enjoy about working with accountants. Damian explains the difference between traditional bookkeeping and Square Penny’s proactive financial administration approach, outsourcing vs. offshoring and which Damian prefers, as well as how this leads to more efficiencies for accountants and business owners.

Sam and Damian also cover the importance of getting very clear on your values and how that can help with efficiency both in conversations with staff and collaborations with other businesses. They finish the conversation with Damian sharing his tips and tricks for accountants, including the power of quality systems and the right support in business, plus engaging your staff in the efficiency and operations process.

Watch the episode

What we cover in the episode

• Damian and his Square Penny team’s approach to outsourced finance departments 

• How Square Penny works and the services they offer accountants 

• The difference between traditional bookkeeping and proactive financial administration 

• The power of on time data and the problems with the ‘clean it up at the end of the year’ approach 

• Why collaboration and getting out of our silos is so important for efficiency and relationships 

• What the Square Penny team enjoys about working with accountants 

• The problem with every software system and why you need to get the human element right 

• Outsourcing versus offshoring, and which Damian prefers  

• How this can lead to more efficiencies for accountants and business owners 

• Common blocks or challenges accountants face when it comes to efficiencies and outsourcing 

• The importance of getting very clear on your values  

• How the values piece can help with efficiencies both within conversations and in collaborations 

• Damian’s tips and tricks for accountants to be more effective and efficient, especially during this Covid-19 time 

• The power of quality systems and seeking the right support in your business 

• Why you should engage your staff in the operations and efficiencies of your business 

Quotes

“One of the key areas that [accountants] struggle with from an efficiency point of view is actually trying to do everything ourselves. So one of the main areas I really demonstrate this is around the bookkeeping and data management area of our firms.” ~ Sam 

“Bookkeeping traditionally is an after-the-fact event. But what we do as an outsourced finance department is really focused around financial administration, which encompasses a number of a number of areas: it's not just recording stuff, it’s also looking at the efficiency and making things easier to do, and then be able to provide the right information to the client so they can actually do something with the information.” ~ Damian 

“Although the accountant has lost some revenue because we are doing a piece of the work, what it's actually allowed them leave to do is to create the capacity to actually do work for the remaining clients at a better rate.” ~ Damian 

“We like helping people, we like solving problems, and what we're best at doing is solving those problems that external accountants or clients have. When you get that right, the relationship between between Square Penny and the external accountant just improves because everyone knows the expectations of [the two parties], and so your deliverables match that expectation.” ~ Damian 

“You have to pull the reins back and be courageous enough to have that conversation and sometimes people don't want to have those more meaningful conversations because it can come across as attacking, but you do your best to ensure that it comes across professional all the time.” ~ Damian 

“You actually have to take time to make time. So getting your staff involved in this and having conversations and then getting the systems right [while] actually going through that process is super important.” ~ Sam  

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