As a small business owner, it can be challenging to determine when to start using outsourced accounting services.
However, outsourcing accounting services has many benefits, making it an attractive option for most companies. It is an excellent way to save time and money and depending on your needs, you can outsource the entire process or just certain parts.
Fortunately, some signs make it easier to know that it’s time for you to outsource your accounting needs.
You’ve got a great business and want to grow it. But business growth can end up causing more problems than it solves if done carelessly.
Outsourced accounting is a lever to keep your company running smoothly and efficiently. Implementing scalable systems, including outsourcing non-core elements, that can grow with you is essential for building a successful business.
Here are a few signs that outsourced accounting might be for you.
Maybe you’re just starting and don’t know all the options for driving growth. Or maybe you’ve been in business for years and are ready to take things to the next level.
Either way, one of the first steps on your journey is to know whether or not you need outsourced accounting services.
Growth means dealing with the details of:
Juggling these topics can distract from your primary function as a leader: growing your business.
Outsourced accounting is a cost-effective way to ensure your books are in order as you grow. Trying to do it yourself with neither the time nor expertise to do it right can cause long-term issues.
Outsourcing all your accounting will free you up to concentrate on activities central to business expansion.
Outsourced accounting is often cheaper than hiring an in-house accountant. The savings primarily come from eliminating the cost of office space and paying a fixed salary and payroll taxes.
Outsourcing can help you save money on fixed costs and send more to your bottom line if you’re running a small business or startup.
Outsourced accounting is also cheaper than in-house accounting because you only pay for the services you need when you need them.
For example, if you only have one or two employees, then you don’t need to pay for a full-time person to work on your accounts. Even with a large staff, it may be cheaper to outsource all your accounting needs.
As you grow, you need systems and processes that grow too. It’s not enough to have the right software or bookkeeper — your systems need to scale with your business and be flexible enough to adapt as your business grows or shifts focus.
In the beginning, it sometimes feels easier to do everything manually — but as your business grows, spreadsheets and manual processes become less efficient.
For example, inventory tracking via spreadsheets can work when your company is small and offers a limited product palette. But outsourcing can help automate everything, eliminating questions about the accuracy of your inventory system.
Further, you may lack the time or energy for the daily grind of managing finances. As your company grows, you may spend more time on day-to-day tasks like bookkeeping and invoicing than you would like. It is often because small businesses lack systems and processes that allow them to scale up without having to do everything themselves.
Outsourced accounting services can help by taking these tasks off your plate and ensuring robust systems are in place. Instead, you can focus on growing your business, not keeping track of every invoice received and expense paid each month.
Financial figures and KPIs should underpin data-driven decisions.
If you’re not getting the information you need from your numbers, it’s time to outsource your accounting. Not because it’s boring or you hate it, but because you want to see the big picture instead of worrying about the details of what’s coming in and going out.
It could also be that you’re unsure of your business’s profitability. An accountant who only provides monthly financial statements or an annual tax return isn’t giving you all the clarity you need.
To make better decisions, you need in-depth analysis and insights into how things are going month-to-month or year-to-year. Whether marketing expenses, employee wages, or travel costs, business expenses can add up quickly without proper tracking and analysis.
If any of these signs resonate with you, or you’re struggling to keep track of all your finance topics, it’s time to take action. Outsourced accounting could help.
It’s an excellent solution for small businesses, startups, and entrepreneurs, and lets you focus on your business and not worry about bookkeeping and taxes.
Choosing the right accounting firm for your outsourced accounting services is essential. Contact the experts at Founder’s today to see how our services fit your needs.