Most small businesses fail in their first few years because of cash flow problems. Usually, they have too many unpaid invoices and late payments, their outgoings outweigh their in-goings, and they struggle to build a consistent cash flow.
What many business owners do in these first few years is try to do everything themselves. From a cash flow point of view, this does mean that they make some savings initially, but in the long term, they don’t grow as quick and build a business and cash flow that is sustainable.
We may harp on about how it is so essential that business owners bring in an accountant as soon as possible, but we have our reasons for it! Firstly, you are busy enough without wasting time and resources on sorting and managing your own accounts. And secondly, accounting has many facets and is an intricate and complex task. Get it wrong and it can be very costly!
To help you decide if you could benefit from outsourcing your accounting, here are 9 signs that it’s time. After all, accountants are strategic professionals who can help with many other business areas too…
Signs it’s time to outsource your accounting
As we said, accounting is broad and complex. If you try to do it yourself, it will take longer and you’re far more likely to make mistakes. Mistakes are very costly in the accounting world!
Sending invoices or chasing payments tends to fall down the list of priorities. It’s crazy when you think about it as it is these tasks that ensure we get paid for the work that we do, but alas, many business owners tend to concentrate on providing the best possible service and growing their business.
Although these tasks are ‘unprofitable,’ they are essential to building a consistent cash flow. An accountant can help you automate this process and manage the chasing for you.
Are you using outdated systems? Are you struggling to embrace apps and software that you know will keep you competitive? Do you not know where to start?
Every business needs to improve its processes. They need to streamline how they work so that they can work smarter, not harder and they need to improve customer experience. An accountant can help you do just that from deciding what is the best for your business to integrating the system and providing training on it. Many accountants are cloud-accounting experts now so they can help you keep your finger on the pulse.
Tax legislation is confusing and is subject to change. If you don’t have a professional to spearhead this, then your business won’t be as tax-efficient as possible. Accountants are experts in strategic tax planning so they can identify important tax opportunities and help you claim everything that you can.
Day-to-day accounting functions take up valuable time and resources. Business owners have enough to do every day and they are already wearing multiple hats, so why add more to an already full plate?
If you’re so busy IN your business that you can’t work ON it, it’s time to outsource your accounting. Why waste time doing these tasks when you could be focusing on growing the business?
You don’t have to hire someone full time to do your accounting – it’s expensive! Plus, if you lack the staff or resources for this anyway, it’s a double win. Outsourcing your accounting gives you the best of both worlds: everything gets taken care of efficiently and to a high standard and you get access to a financial advisor as and when you need them.
Some decisions are crucial in business and it’s difficult if you don’t know the best avenue to take or the consequences of each choice. By outsourcing your accounting, this becomes so much easier. Not only can accountants give you the financial data you need to make the best decisions, but they can also help you forecast these decisions and give you sound business and financial advice.
Do you have growth goals but you don’t know what to do to achieve them? Maybe you have no problem growing but you’re struggling to keep up with this growth? Whatever your issues when it comes to growing sustainably, an accountant can be an invaluable guide. They can help you build your business plan and then tweak your processes and systems to help you get there.
You can’t put a price on peace of mind and that’s what accountants give you. Do you worry about your business finances and being able to pay your employees? Do you worry that you’re doing something wrong or about what you don’t know, both of which could lead to fines? Do you worry that you’re missing opportunities for growth? If you outsource your accounting, you get an expert who takes care of your accounts, payroll, budgeting and yearly filing, but most of all, you get complete peace of mind that everything is being done and a newfound confidence that you will achieve your business goals.