NOTE: On September 18, Keeping your Balance CEO Becky Brown spoke at the San Francisco Small Business Expo in Fort Mason on the topic of the “Top 5 Reasons to Outsource Your Accounting. Today’s post is a summary of her presentation.
Small business owners have a lot to think about: sales, staffing, customer service, vision, growth, etc. Perhaps the one responsibility they’d rather not think about is accounting.
Some business owners try to avoid the hassles of accounting by simply ignoring the problem. “I’m too busy,” they say, but no business can hide from accounting. If the tax penalties for poorly done or completely not done tax returns aren’t motivating enough, hopefully the knowledge that you have basically no visibility into the vital indicators of business health will be.
Sure, there are online tools out there to make the process less burdensome, but even “automated tools” require extensive data input and difficult judgment calls. And while you might think that a part-time bookkeeper might solve your problem, it really depends on your needs, and there are downsides there too.
Here are the Top 5 Reasons to Outsource Your Accounting
1) Focus on Growth
This may seem obvious to some, but every minute you spend on your books is a minute you aren’t growing your business. There are plenty of accountants and bookkeepers out there who can do your books better and more efficiently than you, but no one can grow your company better that you can. So, while you focus on growing, selling, hiring and raising more money, your outsourced accounting team can handle all of your Invoicing (A/R), billing (A/P), manage your vendor relationships, issue your financial statements.
2) Generate More Revenue
Inefficient internal bookkeeping processes can be a time waster for everybody in your organization, and time wasted is time not spent building revenue. Your outsourced accounting team will set up new efficiencies to reduce the number of touch points with each accounting item (check, invoice, bill, etc.) and allow your entire team to spend more time performing revenue generating activities.
3) Enjoy the Power of Teams
Individual full-time or part-time bookkeepers can be great assets to a company, but they can also be a liability. It’s never good to have such important information and processes handled by one person. Working with an outsourced accounting team, you are protected against the risk that your bookkeeper may move, quit, go on vacation, get hit by a bus, or get (gasp!)…pregnant.
4) Access to Best in Class Software
Choosing the right invoicing, time tracking, expense reporting or payroll software can be arduous. So, stop doing it! Your outsourced accounting team is in the business of knowing all about the best technology solutions to streamline your internal processes.
5) Grow with Confidence
Small businesses have a funny habit of growing very quickly. We know it’s a fancy problem to have, but it can be a real hassle if your accounting team can’t scale quickly with you. Outsourced accounting departments are infinitely scalable and will assign new bookkeepers to your account on an as needed basis to grow with you.
Is Outsourced Accounting Right for You?
In many ways, outsourced accounting is right for any sized company, but over the years we’ve developed a simple recipe for the “sweet spot” for companies to make the transition to outsourced accounting:
- Planning to have more than $500k in revenue within a year or two
- Multiple revenue streams or locations
- Intense interest in rapid growth
If you’d like to discuss if outsourced booking is right for your start-up, small business, or firm, drop us a line at 415-399-9844 or email@example.com.