Ensure your next-generation members learn about accounting
It is important to involve your next generation in accounting conversations. Typically, the financials are the most intimidating aspect of the business, as well as the most fraught with family dynamics.
Educating the next generation about accounting early on provides several benefits. Your children can ask questions in a safe environment before they assume a leadership role; as leaders, they might feel they should already know the answers.
The next generation will gain exposure to areas they may not be involved with on a daily basis. For example, they will gain an understanding of the movement of accounts receivable, learning about the timing of the collection process and its impact on cash flow. They may even come up with ways to speed up cash collection.
Invite your children to meetings with accountants, financial planners, management and your board. Encourage future leaders to observe various departments within the organization. Help them see the interconnections of the different roles and departments, and how decisions cascade throughout the business.