The Bay Area famously hosts innovation and start-up opportunities. Starting a business though – no matter how great the idea – requires more multitasking than any can anticipate. When it comes to multitasking with your accounting though, you place your finances and potential success at risk.
Here are five major reasons San Francisco Bay Area businesses should outsource their accounting:
Internal Accounting May Not Cut It
So why shouldn’t you hire an internal accountant as a full-time employee? That works in many cases. But often, especially with the extreme boom and bust cycles that Bay Area companies see, it’s easy to quickly overwhelm staff. Not to mention that you always seem to need numbers run on accounting staff’s vacation or sick days. With outsourced accounting, you have the flexibility to quickly grow or pull back based on your needs and volume of work. Your accounting is based on your business, not on someone’s salary or workload expectations.
Essential Forecasting and Growth Planning
In order to ensure proper financial forecasting, your books must remain balanced with financial statements in order at all times. Financial forecasts only prove valuable when they draw from up-to-date bookkeeping records. If your accounting tasks keep sliding, your advantages from forecasting and growth modeling diminish or become non-existent. If you’re scrambling and hastily pulling together accounting reports, you’re risking errors and sacrificing the raw intelligence for your company’s fiscal future. And, if your lack of ongoing accounting practices means you’re not constantly reviewing timely fiscal information and adjusting your practices accordingly, it could be a fatal error in this competitive market.
Payroll and Benefits Management
The Bay Area boasts plenty of talented workers. But make no mistake, they are demanding. Implementing complex payroll and benefits packages amplifies when employees negotiate a financial stake in growing companies. It also increases your need to stay on tax preparations throughout the year, not just around quarterly and annual filings. Furthermore, it’s no secret that California tax laws seem just as complicated – if not more complicated – than federal tax laws. If you retain out-of-state virtual talent, it complicates your payroll tax filings. This provides a crucial reason why Bay Area businesses should outsource their accounting to experts.
Flexibility for International Expansions
If your growth plans include possible international dealings –sales or talent contracting – outsourced accounting offers the ability to adapt quicker. International growth carries reporting and tax regulations that can easily overwhelm in-house employees. Don’t spend countless hours researching the accounting impact of your expansion when you can let professionals handle it with their existing knowledge.
Preparation for Future Investment
Beyond normal forecasting, it seems everyone in the San Francisco Bay Area has an eye on growth, whether high-tech, pharmaceutical, health care or business operations. Bay Area businesses not only concentrate on their operations but constantly keep their eyes open for investors … and possibly an IPO dream. This means your accounting must be tight, solid and professional at all times. No matter how fascinating your business may seem, investors also consider if they’re taking on a financial mess to unravel. With competition everywhere, they seek great ideas with the least amount of burden. Outsourced accounting keeps your financial reports in perfect condition, so you can take a power lunch at a moment’s notice.
The world looks to the Bay Area for innovation and first-class business development. You’re an exciting part of that culture. Why not keep your focus on what you do best and outsource the burdens of business accounting?