Time flies. Time is money. Time is of the essence. All these maxims are reminders that every minute counts when you’re running a busy, growing business. So when it comes to your accounting* work, it pays to ask yourself these questions:
- Are you or other team members spending too much time on accounting* tasks?
- Is your team struggling to get all your accounting* work done in the available time?
- Is time flying by, without achieving the results you want to see when it comes to your accounting* work?
If the answer to any of these questions is “yes,” then outsourced accounting* may be the right solution. Outsourcing accounting* functions like payroll, financial reports, bookkeeping, taxes, accounts payable and receivable, and other tasks can help you manage a growing workload, eliminate capacity constraints, improve efficiencies, and scale your business more effectively as you keep your team focused on more strategic efforts.
Know When It’s Time to Outsource
These seven signs are strong indicators that your company could benefit from outsourcing your accounting* work.
You lack the staff and resources to cover your financial bases.
Hiring staff accountants and bookkeepers requires a significant financial investment—yet CEOs and other managers are typically too busy juggling other responsibilities to take on the accounting* function themselves. If your team is too small or already stretched thin with other responsibilities, outsourcing your accounting* to an experienced third party may be the right approach. Whether you need occasional help or full-time accounting* support, hiring an outsourced firm will ensure your accounting* work is done effectively, while freeing up your staff to focus on strategic efforts that can help grow the business.
Your finances have become more complex.
Are you on a fast growth track? Are you employing more people or other resources? Are you expanding into new product or service categories or new geographic markets? As your business expands and evolves, your finances will naturally grow more complex. For instance, you might need more sophisticated financial modeling and reports that help you make sound business decisions about growth opportunities. By outsourcing your accounting*, you can hire the experts who are adept at the complex financial services you need, when you need them.
You fear that you’re falling behind technically.
The latest software can make the difference between moving forward and falling behind in any field, including accounting*. But for small and mid-sized businesses, it can be a struggle to research, select, implement, and stay current on the right accounting* technologies, without impacting key tasks like payroll or month-end, quarter-end, and year-end reporting. On the other hand, you can be certain that an outsourced organization has invested in the most advanced accounting* software and is staying on top of the latest industry trends and technology. (They need to, if they expect to remain competitive.) Leaving it up to an outsourced firm to invest in and keep current on technology will save you time and money.
You’re worried about data security and fraud.
By 2025, the price tag on cybercrime is expected to reach $10.5 trillion annually. Meanwhile, nearly 80 percent of IT security leaders worry that their organizations don’t have the proper measures in place to protect their data and their companies. If a security breach happens, both your data and your clients’ data could get into the hands of cybercriminals, triggering a whole host of financial and customer service issues. Fraud is an equally concerning and escalating problem for many businesses, with a report revealing that about half of all companies had experienced a fraud issue in the past 24 months, to the tune of $42 billion. An outsourced accounting* provider has the resources to stay current on cybersecurity and fraud trends and issues, as well as the technologies and processes to reduce the risks.
You’re scaling up.
Outsourced accounting* firms are pros at scaling up their work as their clients’ businesses grow, managing all the details along the way. Rather than try to juggle the accounting* function yourself, during times of accelerated growth your time will be best spent focused on ensuring your operation can handle that growth effectively and building strong relationships with your clients/customers. Outsourcing your accounting* tasks can ensure you have the time and energy to scale up without wearing down and guarantee that nothing gets overlooked in the process.
You’re concerned about tax planning.
Are you worried that your business is paying too much in taxes or missing out on tax-related opportunities? Do you find it challenging to hire staff who can handle everything from simple bookkeeping to the more complicated task of tax planning? Outsourced accounting* providers are staffed with professionals who are well-versed in the latest tax code changes, experienced in tax planning, and adept at identifying opportunities to support your company’s financial position and objectives, now and for the long term. It’s likely that an outsourced accounting* firm can cover all your tax planning needs better than you could internally—whether it’s tax season or not.
You’re updating your strategic plan.
Finances are a key component of any strategic plan. Whether your strategic planning is triggered by a desire to expand capacity, acquire a company, or expand by adding new locations, products, or services, it’s important to look closely at the numbers. What do your financial forecasts tell you? How does your overall financial picture support your strategic plan? If you’re investing time in updating your strategic plan, it’s wise to invest in the services of an outsourced accounting* firm with the expertise to provide financial forecasts and other tools that can ensure your financial picture aligns with and supports your strategic plans.
If you’ve noticed any of these seven signs in your business, it might be time to consider outsourcing your accounting* work to an experienced third-party provider like Scrubbed. We provide full-service accounting*, corporate finance, tax planning and compliance, and other financial services to support growing businesses across the globe, with solutions that are scalable, practical, cost-effective, and technology-driven.
To learn how our outsourced accounting* services can help you solve capacity issues, improve efficiency, scale effectively, optimize tax planning, and avoid data security and fraud risks, contact us at [email protected] or 800-837-5160.