If you started your own business from scratch, you probably wore a lot of hats in the beginning. In order to get things off the ground, you had to be the manager of sales, accounting, marketing, customer service, production and more, all in one.
After some success, you may have added a couple of staff, but you or another overworked employee may still be handling all the finances on top of everything else. As you continue to grow, this can get overwhelming fast. All of a sudden, poor cash flow can bring your business to a disastrous halt.
It can be hard to let go of your accounting, but at some point, you risk damaging your business and everything you’ve built if you don’t. You may be concerned about the initial expense, but a good accountant will save you money in the long term by showing you areas of waste, as well as ways you could economise, improve cash flow or get significant tax breaks. Plus, your staff time that’s being spent on the books can be put to better use elsewhere.
Wondering if it’s time to delegate? Here are four signs that it’s time to outsource your accounting to a professional firm:
One – Customer service is suffering
If you’re spending more time on your books than addressing the needs of your customers, you’ve got a problem. The same is true if you’re spending so much time on accounting that you no longer have the time to listen to client feedback and use it to improve your products and services. By outsourcing your accounting to a professional, you’ll free up time that can be used to improve your customer service and build relationships with clients.
Two – You can’t keep up with tax laws
When it comes to tax calculations, payments and business write-offs, it’s essential that you have a clear understanding of all local, council, state and federal rules. Keeping up is challenging, since tax laws often change. If you don’t understand and follow the latest laws – or you miss important payment deadlines – you can make costly mistakes and risk paying high fines.
Don’t feel bad about not being able to keep up with all the ongoing tax laws – that’s a big part of what accountants are paid to do! Just accept the fact that you need to outsource the work to someone with the right expertise and then spend your time on what you do best.
Three – Payments are behind . . . or missing
Billing and accounting can’t be put off, because they affect all other parts of your business operation – so if the accounts aren’t balancing out at the end of the month, or invoices aren’t being paid, your business is going to suffer.If vendors can’t be paid on time, you won’t have enough supplies to keep going. And if payroll is always late, you’re going to have problems keeping those employees you worked so hard to find.
Four – Your business is growing quickly and/or adding new locations
Success is great – but fast growth means that your accounting has to keep up. With more sales, more orders, more employees and more locations to deal with, you can quickly get in over your head . . . and your hard-earned growth can start to suffer. A good accountant will provide you with up-to-the-minute financial data, as well as strategic advice. At a time of rapid change, having an accurate picture of all the accounts is critical so you know where you stand and can take action.
Need to talk with a professional firm about outsourcing your business accounting? Contact the experts at Accru today.