Top 5 Accounting* Pain Points for High Growth Business and How to Fix Them

5 accounting pain points

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Top 5 Accounting* Pain Points for High Growth Business and How to Fix Them

5 accounting pain points

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To start a business takes incredible determination and perseverance as well as unwavering vision. Creating a successful startup company – and growing that company – is always cause for celebration. However, with growth comes problems of scale, new issues that arise when your startup goes from its initial stages to a high-growth business.

Some of the biggest problems are not in your mission, your company values, or your product. They arise in the daily financial management of the business. We have identified five key areas where high-growth businesses struggle. Fortunately, working with an outside firm can solve many of these problems quickly, effectively, and on budget.

Staffing Limitations

Visit any company and you will quickly discover that success is not created by the product or the work environment, but by the people working there. When your business experiences rapid growth, one of the most important decisions to get right is finding the right people, placing them in positions to succeed, and retaining them.

However, limitations on resources (and often physical space) can keep you from hiring the necessary personnel to fill new roles. This is especially true when it comes to financial management and operations. 

Many CEOs and company directors prefer to have people working on-site. However, for a high-growth business, the right solution is often to outsource work to a firm that will connect you with experienced professionals. This saves you on hiring costs and overhead while providing access to talented experts in their field. You can take the guesswork and time out of the process by relying on a firm to fill specific positions based on your needs.

Cash Flow and Financial Reporting

Perhaps the greatest challenge of scaling a startup is managing cash flow. This takes careful budgeting and forecasting so you always know what you can afford to do – and when it is the right time to take calculated risks.

Unfortunately, proper budgeting and planning can take substantial time away from working on your core business. When you are worried about where the next round of funding will come from and how to properly invest that into the business, you lose precious time developing your vision and keeping the business moving in the right direction.

A professional accounting* and finance professional can help tremendously in this situation. Imagine the ease of handing off your financials to a team of experts and receiving a clear, thorough outlook for the next 18 months. Instead of worrying about where the money is going, you have a road map to continue building the company.

Effective Scaling

Growth is an important goal for any business but scaling too quickly can overstretch your resources and leave you in a difficult situation. This is where a financial consultant can help you take your company to the next level – effectively.

A financial consultant will work with you to manage your high-growth business, responding to your needs on a daily basis. When you find yourself with increased sales and skyrocketing revenue, you will also discover more invoices, greater tax burdens, and a more complex system to manage. Handing these tasks off to a team with Big Four experience will allow you to grow in a way that works for you.

Flexibility

One of the strengths of any startup is its ability to remain nimble and flexible. With few resources and little overhead, it allows you to be agile in shifting marketplace, making adjustments quickly and effectively.

As you grow, flexibility is often a casualty. With more people onboard, more complex decisions to be made, and more customers to service, the danger is becoming too static. 

By outsourcing the more labor-intensive accounting* practices to an outside firm, you give yourself the freedom and flexibility to focus on what really matters. Even better, you can work in the areas of your business where you can make the most impact, trusting that the professionals managing your accounting* and taxes will always have your best interests in mind.

It is important to create automation in a growing business so that you and your team do not become bogged down in day-to-day task management. An outside firm will automate your processes and free up both time and resources for you, allowing you to remain flexible even as you grow.

Expertise and Focus

When you start a new business, you understand it better than anyone. Your vision, your mission, and your values are embedded in everything that you do. That is an important factor in your success. With success come new responsibilities and new roles, often roles that are better understood by an expert.

When it comes to tax preparation and accounting*, you should not have to do it alone. By entrusting your finances to a dedicated team of skilled professionals, you free yourself to focus on your core business. You can continue working in your strongest areas while leveraging the talents of others to help your company grow.

Successful Growth

Growing a company is an exciting new venture for any startup. Although it comes with many challenges, these can be mitigated successfully by turning to experts for help and guidance.

At Scrubbed, we provide full-service financial assistance to high-growth companies throughout the United States. Our team of professionals have Big Four experience, meaning our clients have confidence in knowing that they are getting the best, every time. 

To learn more about how our team can help you scale your business with expert financial, tax, and accounting* services, contact us today to schedule your free consultation.