We understand. It’s a hard decision, especially for a small business. But the benefits of transitioning to a full-time virtual accounting department or staff often falls prey to one-dimensional arguments of cost, without actually looking at the return on investment for the decision. Make certain that you look beyond the hard costs of services to consider the financial implications to these areas as well.
Current Financial Statements
It was a busy week. Well, there’s no way you could get to it when short staffed. It’s just too overwhelming. The number of excuses seems endless but the results are the same: you’ve fallen behind on your bookkeeping tasks. The repercussions of this are more than a stack of files or a possible missed invoice. These delayed tasks keep you from producing current and timely financial statements to monitor crucial elements such as cash flow, and prohibit you from making more accurate projections and monitoring financial patterns. When you look at all the individual decisions that arise from timely reporting, not keeping current on your financial statements could be costing you hundreds or thousands each year.
The cliché of a mad tax scramble. It’s not so comical when you’re in the middle of it … while trying to land a major deal. And, with enough tax filing and payment deadlines to fill a separate calendar, taxes are certain to fall at an inopportune time multiple times. That’s why American businesses rack up an unthinkable amount of tax penalties every year just because they haven’t kept on top of their financial situation. And, with constantly changing regulations for both federal and local tax policies, you could be giving away money each time you file simply because you weren’t aware of new information. A full-time virtual accounting department keeps you and the government happy.
Whether you’ve been trying to handle financial tracking yourself or assigned it to a variety of rotating employees for temporary help, chances are you’ve allowed patterns of inconsistent and incorrect tracking through time. But you have one accounting software, that should produce consistent results, right? Not even close. Unless each person uses extreme diligence to review past work (not likely, especially in the case of pulling someone in to address an urgent need, such as taxes), you can have inconsistencies in reporting and categorization of items. Over time, this leads to not only inaccurate reports, but a huge mess from which to backtrack.
Admittedly, adding a full-time virtual accounting team costs money. However, it may be more accurate to label this as an investment. Without proper tracking you could be losing money at multiple points, far exceeding your outsourcing costs. If you think it’s time to look at how a financial outsourcing investment might benefit your company, talk to one of our experienced professionals. We can build a customized plan to get you back on track and hopefully save you hard-earned profits.