Are you putting too much time and energy into your company’s accounting? Outsourcing it may be a good solution.
You didn’t start a business to chase debits and credits. You had an idea, something that you thought you could do or make or resell. You wanted to be your own boss, to create a company that would provide a product or service in your own unique way.
If you didn’t realize it going in, you soon learned how much you needed to know about accounting. You were able to send invoices and pay bills and submit the necessary taxes. Even that much took a lot of time, and yet you wanted to grow, which you knew might involve trying to get financing. Running and analyzing reports. Paying employees. Keeping close watch on your inventory. Things you weren’t sure you had the time and/or skills to do.
Outsourcing your accounting–hiring an individual or a firm to handle the lion’s share of your financial tasks, especially the more complex ones—could be your answer. But is it? Here’s a quick look at some of the reasons why many businesses avoid it – and why they might want to explore it.
It’s too expensive.
Not necessarily. You can work out a service plan that meets your needs and fits your budget. Further, how much is your time worth? You’re the only one who can do what you do: assess your current situation and plan for growth. While you’re spending time on the nuts-and-bolts accounting work, you’re not managing the company and turning your dreams into actionable goals.
I don’t want to hand over control of my accounting because I’ll lose sight of the company’s financial situation.
Yes, you won’t necessarily be doing things like:
- Trying to keep the workflow under control,
- Puzzling through reports you may not fully understand and neglecting the more complex ones whose insight you need, and,
- Keeping an eagle eye on your cash flow.
If you outsource, you’re still the decision-maker. An outside accounting firm won’t take that away from you. It can, however, provide you with the support you need so you can make better business decisions.
I already use accounting software. What can a professional firm do that it can’t?
Plenty. It can make sure that you’re making the best use of your accounting application. It can monitor your bookkeeping and troubleshoot where necessary. It can answer those questions you’ve always had about procedure and assist as you get your finances in order and ready to present to potential investors.
I’m not using accounting software. An expert firm wouldn’t want to work with me.
Not true. In fact, that is one of the things that today’s accountants do well. They keep up with technology. They can help you determine which solution would be right for you, and guide you through installation, setup, and day-to-day use.
Accounting firms that are available for outsourced work have worked with numerous small businesses already. They’re very good at learning about companies’ needs and suggesting the right tools and services. We’d be happy to establish such a relationship with you.
Stock images courtesy of FreeDigitalPhotos.net