Is your business struggling to keep up with invoices, expenses, and all other aspects of bookkeeping? Unsurprisingly, one of the most common reasons for small business failure is lack of cash. Simply put, having a proper accounting system and accurate bookkeeping can solve cash flow issues.
When optimizing systems and processes for efficiency in small businesses, the workload and responsibility often falls to one person, such as an admin or assistant, the business owner’s spouse, or another individual employee, and is likely not the best situation.
Luckily, another option to relieve the burden of your bookkeeping and accounting needs is to use a reputable outsourced accounting service. Here are some reasons you might want to outsource your accounting department.
1. You do not have an accounting background
Anybody can do simple math, right? While we are not here to doubt your math skills, it is usually best to let accountants keep your finances in order. Accounting is much more than simple addition and subtraction. When you use outsourced accounting services, you are hiring somebody that has studied and practiced the art of accounting. It’s easy to make mistakes when you are learning a new skill and making a mistake when it comes to your business’s finances is not advisable.
2. One Person is in Charge of All the Books
Do you have one lone person doing all your finances? While that may seem efficient to you, it is actually very risky. While they may be doing a great job, there is nobody overseeing the work. They may do so much that you don’t really know your business’s financial standing.
Outsourced accounting services will give you experts in the field and a second opinion on anything that maybe seemed strange while it was done in-house.
3. Too Much Time Spent on Accounting
Do you find yourself doing bookkeeping date entry or tallying tax deductions late into the night? If your business efforts are cutting into family time or personal hobbies, then it means you need to bring in extra support. You work hard throughout the day on business development, brand strategy, client relations, and more. These daily activities should take priority, often causing the busy work to fall to the back-burner. Working late to the point where it cuts into your sleep means you are on the fast-track to burnout. Instead of spending your nights trying to stay current with the bookkeeping tasks, bring in a local CPA in Scottsdale so you can turn your attention to your services and customers.
4. You’re experiencing rapid growth
Growing your company is one of the most fun, yet stressful parts of running a business. When your business is experiencing rapid growth, you should focus your energy on running your business. Think about the opportunity cost, running your business should come first. This is also the worst time to make an accounting mistake. Things are already rapidly changing and difficult to keep track of. The thing that needs to be under control is your business’s finances. Having accurate and up to date financial statements can also help small business owners make better decisions in a time of rapid growth.
5. Outdated financial systems
Even if you have an accounting or bookkeeping system in place, you need to evaluate whether you are keeping up with industry trends. Accounting technology can be used to simplify your processes and optimize the reports that are available. If you are still tracking your business expenses manually on a spreadsheet or notebook, then you are leaving benefits on the table. Hire outsourced accounting services to get support with setting up your new system and implementing the right technology that can support your business growth.
6. Missing payments from customers:
Without money coming in from your customers, your business won’t be able to keep going each month. Unfortunately, it is common for businesses to have overdue payments from customers. You need to have a system in place to follow up on these payments to ensure you have the cash flow to keep up with your business expenses. There’s no doubt outstanding payments can result in a domino effect that could topple your business in the future. If you aren’t consistent about tracking and following up with payments that are due, then it is best to let someone else handle this aspect of your business. If you are experiencing this problem, outsourced accounting services in Arizona can help implement a proper system in place to ensure cash flow.
7. You need to cut costs
It may seem counterintuitive to hire help when you’re trying to spend less. However, as odd as it may seem, it is almost always cheaper to outsource your help. Save yourself from having to pay a full-time accountant’s salary (most start at $60k) and instead bring on an outsourced accountant. Outsourced accounting services oftentimes only cost a few hundred dollars a month, depending on the scope of work. Salaries aside, you’ll also save money by not having to pay for things like health insurance and other costs associated with hiring a full-time employee.
Outsourcing your accounting function provides even more value to rapidly growing businesses who need to focus their energy on scaling, not accounting. When you outsource accounting services, you can focus your time, energy and resources on increasing business revenue, enhancing your relationships with your customers, and achieving company goals or creating new ones.
Limitless Investment and Capital’s Outsourced Accounting Services
If you’re considering outsourcing your finance and accounting function, choosing the right strategic partner is critical. Save your organization time and money with Limitless Investment and Capital’s outsourced accounting services in Scottsdale. Our best practices will make your business more profitable and efficient.