In this episode of Controllers Classified, we explore the role of accounting in scaling businesses as well as public company accounting processes with Eric Van Cleve, Controller at 8x8. The episode begins with a recap of Eric’s career in accounting, detailing his discovery of accounting in college and how he worked his way up the ladder once he landed client side out of college. He notes that he found the most success when he focused on being interested, proactive, curious and capable.

The episode then turns to a discussion on how to think about directing accounting operations at scaling companies. Eric shares how he thinks about team structure to ensure efficiency in the close process as well as his decision making framework for where to automate and where to offshore. In every decision, he tries to factor in not just current but also future business needs.

From there, the discussion deep dives into private vs. public company accounting, with Eric providing advice to finance and accounting leaders at pre-IPO companies regarding what to prioritize as they think about SOX readiness. He notes that these companies must be able to confirm that the answers they get to in their data are in fact the right answers. In other words, teams have to be able to prove out their control processes and ensure that reporting obligations can be met. And of course, teams should familiarize themselves with 10Ks and 10Qs.

The episode closes with Eric’s favorite accounting joke. Why did the accountant break up with the calculator? Tune in now to find out!

Key Quotes

“I found myself being very proactive in going after the areas I wanted to be a part of. Leaders are looking for who is interested and who is capable”
“If you want to get to a one day close, you need to structure your team in such a way that you are closing your sub-ledgers first in APAC, then analyzing the data in EMEA, and doing a check/consolidate view of the information in the US.”
“We look at industry benchmarks to assess what makes sense for every control in our process”
“You need your team to know what the right answer is so that way when you’re delivering it to the auditors, they can do their basic checks”
“I would first look at what your reporting obligations are going to be - get yourself familiar with what 10Ks and 10Qs look like”

Time Stamps

(07:19) Streamlining accounting processes for a faster close
(10:09) Automating and accelerating accounting processes
(27:51) Accounting processes at public companies
(33:48) Preparing accounting teams for audits

Links

174 - The Future Was Here

Not So Standard Deviations

Introduction

Remember Everything You Learn from Podcasts