With changes in tax requirements, bill pay, and client expectations, small and large businesses alike are trying to improve their financial services.
In fact, more than 50 percent of small businesses in the U.S. now have a CFO or other financial manager keeping track of their accounts.
If you’re operating a small business and dealing with accounting on your own, you know how tough it can be. Luckily, there’s a solution.
It’s time to start outsourcing your company accounting with automated accounting software. As a result, you’ll save time, resources, and money.
Not sure if you’re ready to switch to outsourced accounting? Here are some factors to consider before taking this step:
Your Business Needs Guidance
Outsourcing your CFO needs can give your company’s finances a new direction. At the same time, it helps cut costs and improve your finances.
You’ll get a streamlined approach to accounting that will save you time and money. You’ll also get expert reviews and guidance to help ensure that you aren’t making costly mistakes.
Whether you’re just starting out or you’re already successful, outsourced company accounting can help. The latest technologies can take your business to the next level.
You Don’t Need a Full-time Accountant
While it may feel as though your business is too small for outsourcing, that often isn’t the case at all. Over 70 percent of small businesses choose to outsource their accounting needs.
That’s because outsourced accounting services reduce the need for an in-house accountant.
Besides paying someone to do your accounting, you also have to pay for benefits. You’ll have to make adjustments during that employee’s vacation or sick days. You’ll also have to provide them with a space and resources within your office.
Also, small businesses may not have enough accounting work to require the help of a full-time accountant.
You’ll need an accountant to deal with balancing accounts and paying employees. But if you only have a few employees and don’t make large purchases, it doesn’t make sense to hire someone.
While you will need an accountant full-time during tax season, paying for an in-house accountant year-round may be a waste.
Outsourcing your company accounting means only paying for the services you need. This will not only save your company money but also free up space in your office.
You’re Trying to Do It All on Your Own
Whether you’re running a small business or launching a startup, you’re likely taking on many different roles.
You’re a manager, making decisions about hours and instructing employees. You’re a marketer, deciding how to promote your business. If your business operates online, you may also be a web designer or SEO expert.
Not only are each of these jobs tough to learn, but they are tough to master and, most importantly, they’re time-consuming. The last thing that you need to do is the accounting work.
Trying to take on your company accounting on your own is a mistake. If you don’t have a financial background, you’ll have to take the time to learn. You also need to know how to keep ledgers, balance accounts, pay taxes, and more.
Company accounting is a sensitive, important area. Trying to tackle it on your own without advanced financial knowledge may cause a disaster.
You’ve Made an Accounting Mistake in the Past
Maybe you’ve been handling your own company accounting or having another employee do so. Whichever it is, if you aren’t using an experienced accountant, mistakes are likely to happen.
There are tons of accounting mistakes that are simple to make, tough to identify, and hard to fix once they’ve been made.
For new companies, one common mistake is not learning to keep proper records.
When you’re busy running a business, it can be tempting to simplify your bookkeeping.
Maybe you lump all of your expenses, including rent, employee pay, and office resources, into one category. Then you lump the rest into a category for profit.
After all, from a non-accountant perspective, it would seem reasonable to assume that all of the money that doesn’t go towards expenses is profit.
But breaking down your records into accurate categories with outsourced bookkeeping can help you better judge the success of your business. These records can also be used to create budgets or help you make changes when profits begin to drop.
Your Current Accounting Methods Are Slow
If you regularly send invoices after deadlines or experience delays related to your company’s accounting department, it’s time for a change.
Your company can only operate and grow as quickly as you can keep up on the financial side of things.
When these begin to lag, it can have a serious effect on the rest of the workflow. Both your employees and clients will suffer.
Employees who are paid late aren’t going to continue to provide quality work. Clients who don’t receive an invoice or other financial records may go elsewhere next time they need services like what you are offering.
If your company accounting gets slow enough, you could experience delays in tax filing. This could cause your business to incur fees or face legal trouble.
By outsourcing your accounting needs, you can be assured that everything will get done on time. That way you can continue to focus on growing your business rather than constantly overseeing the financial side of things.
Your Company Is Growing
As your company begins to expand, so do its accounting needs.
Where you may have only needed to process a few transactions each week, you may soon have dozens. While you may have had just an employee or two in the past, you may now be hiring many others who will need to be paid and have their hours recorded.
Additionally, you’ll also experience changes in tax requirements and potential deductions.
Trying to tackle these issues in-house while also dealing with a growing business can be a challenge.
Even the smallest mistakes could deter the growth of your company. Therefore, it’s best to outsource your accounting needs when your business begins to grow and expand.
You Need Advanced Accounting But Are Afraid of the Costs
Some companies expand their finance and accounting departments as they grow, rather than outsourcing.
But as your company grows, you’ll need someone with advanced accounting skills. Perhaps you’ve had an employee who dealt with some of your company’s finances in the past. However, a higher flow of cash requires advanced skills that your employees may not have.
Hiring an in-house accountant with those skills can get expensive. Outsourcing is an affordable, effective alternative.
You Need New Technology and Software
A skilled accountant isn’t the only thing you’ll need to keep up with your company’s expanding accounting needs. You’ll also need advanced technology.
For new small businesses, a few Excel spreadsheets and an invoicing system might be enough. But when sales begin rolling in, employees are added to the payroll, and a brick-and-mortar store is built, these will quickly become insufficient.
Advanced technology is expensive. To add them in-house, you’d need a new computer and all of the accessories that go with it. You will also need software and accounting programs to handle daily tasks.
When tax season comes around, you will need advanced tax software. Can you really afford these costs?
Cloud-based accounting is a great feature for growing modern businesses. It’s convenient, inexpensive, and easy to use.
This system allows owners and management to track sales and monitor profits with ease. It also enables employers to pay their staff from anywhere.
It’s an excellent option for both small, local businesses and those that operate online with employees around the world. Try it yourself – the benefits are immediate.
Implementing New Technology and Software
Simply buying the technology and software you’ll need for advanced company accounting isn’t enough. In case you choose to do this in-house, you must implement the new system.
If you have in-house accountants, they’ll need to learn the system. If you split different accounting duties among employees, everyone needs to learn how to use the new technology.
By outsourcing your company accounting, you’ll get the benefit of advanced software. On top of that, it will eliminate the high costs or the need to teach your employees a new system.
Outsource Your Company Accounting Today
Outsourcing your company accounting needs can be a great way to reduce costs. It also helps ensure that your finances are being run effectively.
If you’ve been doing your own accounting, you’ll get more time and less stress. If you’ve been using an in-house accountant, you’ll save your company time. If you’ve been using a multi-tasking employee, you’ll avoid costly mistakes.
You’ll also get access to cutting-edge accounting techniques, software, and technology.
Are you ready to see the difference that outsourced company accounting can make? Request a demo to learn more about our products and services today!