How Can An Outsourced Financial Controller Help Overcome Accounting Challenges

Small business owners face a number of challenges every day, and accounting is a big one. Accounting is probably not your passion, but keeping your books organized is crucial for your small business. Some of these challenges have the power to influence business operations, profitability, efficiency, and sustainability. An outsourced financial controller can help overcome these accounting challenges to help businesses grow.

Accounting is the language of business that speaks about financial growth. It translates numbers into a comprehensible statement about business profitability. Typically, accounting involves the process of recording, summarizing, analyzing and recording of financial transactions of a business. This can be difficult in itself, but there are other common financial obstacles small business owners must overcome.

Here are some of the top accounting challenges entrepreneurs must deal with, and how hiring an outsourced financial controller can help overcome them.

#1.  Unexpected expenses.

Many small businesses operate with limited capital. When unexpected expenses arise, your business may not have enough money available to cover it. To avoid problems related to unexpected expenses, businesses should try to put away some money for emergencies. Small businesses should also have a contingency plan in place to cover any expenses they cannot afford, such as access to a line of credit.

An outsourced financial controller can help create an emergency fund for your business and help allocate the proper amount to ensure your business can handle any emergency situation. He or she may even suggest creating an unexpected expenses column right on your company budget.

#2.  Cash flow

Managing cash flow is a big problem for small business and startups. According to a U.S. Bank study, a whopping 82 percent of businesses that fail, do so because of cash flow problems. Small business owners find it difficult to earmark funds to cover recurring costs and keep the business alive.

To stay on top of cash flow, an outsourced financial controller can analyze your bills carefully and set up an invoicing system to receive timely payments from customers.  A Professional monitoring your cash can ensure your business is in the clear.

#3.  Taxes

Every small business has to contend with paying taxes, but taking advantage of deductions means you can reduce your bill come Tax Day. If your small business is home-based, home office deductions are important for running your profits. The National Federation of Independent Business states that “ When you invest in your business, Section 179 allows you to instantly deduct the cost of that investment”. Hence, investment cost can be re-invested into your company.

An outsourced financial controller can assure your financial statements are prepared accurately and on-time to ensure you are maximizing on your tax deductions. They also are skilled to give you proactive advice in regards to taxes.

#4. Keeping on top of expenses

Keeping track of your receipts and recurring expenses can be exceptionally hard. Yet, maintaining records of expenses are very important for small businesses to process and stay ahead in the market.

Fortunately, you no longer have to stock all paper receipts in a file or box so they can be processed later. There are many accounting software options an outsourced financial controller can introduce to you available on the market that can help you go paperless. Every software is different, though, and finding one that suits your business’s needs are critical.

#5. Managing data.

In order to ensure accurate payroll, taxes, and business financial reports, businesses manage significant amounts of important data. For smaller businesses, this task can be daunting. An outsourced financial controller can help implement the proper software systems to ensure all your important data is stored safely in one place.

#6. Analyzing your finances

Making a sound financial decision is best done in three steps: Interpreting, Analyzing and Advising. Regardless of the reports you use, generating the numbers is only the first stage. What do those numbers actually mean? More importantly, how do you improve them?

An outsourced financial controller can interpret and analyze these numbers to lead you to the best advice and decisions. By doing this, small business owners can enhance your financial position in the market and find the loopholes, which are affecting your business growth.

Final Thoughts

If you are a small business owner or startup facing these or other accounting challenges, outsourcing your finance and accounting needs can be a viable, affordable way to deal with those issues faster, and get back back to focusing on what you do best.

An incredibly important task for small businesses is selecting the right accountant or outsourced financial controller. An experienced accountant or CPA can help your business avoid all the above accounting mistakes. As a good outsourced financial controller will able to advise you on all the above issues, and many more, to grow your business in this agile market.

Limitless Investment & Capital’s Outsourced Financial Controller Services

Many of the accounting challenges faced by small businesses can be managed with the help of Limitless Investment and Capital’s outsourced controller services in Denver.  When you entrust your business’s accounting needs to a reliable company, you don’t have to worry about dealing with these challenges on your own. Schedule a FREE consultation with us TODAY!