More business comes with more responsibilities. While you might be able to handle your business as it is now, you might not be able to efficiently and profitably manage your business after exponential growth (which is the goal of course).
As you know, it’s smart to always be one step ahead and to be thinking about the long-term success of your business and the potential challenges that come with it, before they impact your ability to cross coveted revenue thresholds.
Explore these four challenges that your business will likely face as it grows, and strategies to help you navigate them smoothly.
1. More Complicated Books
If your background isn’t in accounting or bookkeeping, your books may already seem complicated. But, as your business grows, so will the complications surrounding your books. Depending on what industry you’re in and the size of your business, your bookkeeping responsibilities can include managing vendor bills, client invoices, payroll, and more. Ultimately, it will be difficult to keep your day-to-day books in order when business takes off.
To prepare for and address bookkeeping challenges, there are a few best practices to consider:
- Avoid manual record-keeping and time tracking. These manual processes can take up valuable time and also lead to human error — making more work for you. Instead, lean on technology and apps to help you manage your books.
- Automate tasks and processes. Do you feel like you’re recreating the wheel with each new client or invoice? Automating processes allows you to cut down on some of the time-consuming, tedious aspects of bookkeeping.
- Outsource your books to a remote provider. Finally, and most importantly, look for a remote bookkeeping partner. They can take the burden of bookkeeping off your shoulders and ensure your books are accurately and efficiently managed.
2. More Complicated Accounting
As your finances grow, it’s more important now than ever to keep your eyes on the big picture when it comes to accounting. However, doing it alone could mean you overlook areas that are problematic. Follow these tips to help you prepare for your increasingly complicated accounting needs:
- Review your reports regularly. This way you’ll always be aware of your business’ health. If you’re not keeping a constant eye on your reports, it’s hard to make informed decisions about your business.
- Adopt a cloud-based solution. Can you access your reports whenever and wherever you need them? If not, a cloud-based remote provider could be the answer. This way you can always find what you need when you need it.
- And make sure not to settle! Don’t settle for a one-size-fits-all software or solution for your accounting needs. Every business is different, so consider partnering with a provider who can build a custom solution to fit your exact needs.
3. More Employees
With every new employee, your responsibilities and expenses grow. You’ll face costs associated with onboarding, benefits, employee relations, file audits, and more. Can you keep up with hiring needs?
There are some steps that can help you prepare for a growing workforce, including:
- Evaluate your needs. Understand what roles need to be filled by full-time employees and what tasks can be outsourced. For example, you could hire someone to take on your remote bookkeeping and accounting needs, freeing up manpower and other resources in your office.
- Think ahead. What is the worst-case personnel scenario that could impact your productivity? Plan for events like your bookkeeper going on vacation or putting in their notice. When you have a plan, you’re able to mitigate the chaos when something happens.
4. More Risk
Ultimately, the larger your business grows, the most risks you’ll face. You’re increasing your reach in the market and you need to keep your growing roster of clients happy. It’s also important to protect their sensitive information, or you could face compliance issues.
These steps can help you mitigate the risks that come with running a large business:
- Keep data in the cloud. While cloud-based solutions might be new to your organization, there are significant security benefits that come with keeping information in the cloud. Research your options, and choose a cloud-based accounting solution to help you avoid risk.
- Trust remote professionals. When you work with remote bookkeeping or accounting professionals like Keeping Your Balance, you avoid the costs associated with hiring full-time employees. These experts will be devoted to helping you also avoid risk and maximize the return on your investment.
One Thing You Won’t Get with More Business: More Time
Of all the things more business comes with, it doesn’t come with more time, which can make it hard to focus on what you’re best at and passionate about. That’s why it’s essential to have a team of trusted professionals on your side. Put time back in your schedule, and enable your leaders to focus on their own professional responsibilities. With remote bookkeeping or accounting resources, you have a scalable team that can grow with you, addressing your needs as you reach your business goals.