As a business owner, staying on top of your accounting is imperative if you want to avoid preventable financial hazards. In the early days of your enterprise, handling your accounting personally or in-house might have been a cost-effective and successful practice. But as time passes and your business grows, handling your accounting in-house might prove to be not as beneficial as it once was.
Fortunately, when your accounting becomes too much to handle personally, there’s always the option of outsourcing that aspect of your administration. But how do you know when your business is ripe for outsourcing your accounting function? Below are a few indicators you can work with.
Accounting Processes are Consuming more time than you can Afford
Accounting isn’t something that can be rushed as strict attention to detail is required. But the bigger the business gets, the more details are involved and the more time and effort it will take to get your accounting done. If doing your accounting yourself is taking up too much of your time and limiting the amount of time and energy you can vest in other vital aspects of your business, then it’s definitely time to consider outsourcing.
Worried about Employee Fraud
As unsavoury a thought as it might be, it’s possible that certain employees are embezzling or in other ways defrauding the business. Such shady activities might go unnoticed to the untrained eye when perusing the accounting books, but a professional will be able to easily pick up such discrepancies. If you are worried that certain employees are siphoning funds from the company, it’s a good idea to outsource to a professional with the expertise to catch discrepancies and protect your business’ financial future.
If handling your accounting in-house is proving ineffectual, you probably should hand over your accounting functions to a professional. Signs that your accounting isn’t properly delivering include delays in payroll or other accounting reports, incomplete or inaccurate financial records, paying more tax than the business should, and similar issues. By outsourcing your accounting, you can enjoy better peace of mind with the assurance you’ll get desired results.
Outdated Accounting Process
If your business aims to be a modern one and you are still storing your accounting records in files and cabinets, you are definitely overdue for an upgrade. If your business must stay ahead of its competitors and perform effectively, you need to dump outdated and time-consuming accounting processes and switch up to more effective and economical ways to handle your accounting. One cost effective way to accomplish this is true outsourcing to a firm that uses state of the art accounting technology software that delivers great results in less time.
The Business has Outgrown your Limited Accounting Skills
If your business has become so prosperous that you can’t keep up with accounting functions, this shouldn’t be a cause for sadness. Rather, it’s an opportunity to reach new heights and the best way to accomplish that is if you have the right supporting team. Outsourcing the accounting and other administrative functions of your business will put those processes in capable hands and lets you focus on other pertinent business matters.
Outsourcing to the right firm
Outsourcing is great but it is only effective if you partner with the right firm. To pick the right partner to outsource your accounting functions to, you need to keep an eye out for the following;
- Quality standards. The selected outsourcing company must be able to deliver on the quality of service you require. To pick such an agency, you must research the company extensively to ascertain its track record when it comes to performance before signing up. You can also check out reviews of past clients.
- Availability of support. The accounting company’s customer support should be easily accessible so you can make enquiries or ask for reports at any time you need it.
- Quality of communication. Communication is important because if you cannot communicate successfully with an outsourcing company in both written and oral form, you will likely not be able to get the service you need. The outsourcing company should be able to communicate with you politely and in terms you can understand so you’ll know exactly what is being reported to you.
- Sort of software being used. Before picking a firm, you must verify what sort of accounting software they use. It should be a modern one that’s capable of delivering fast and accurate reports.
Most important, the outsourcer must be able to adjust to your way of doing business so they can deliver services that are tailored to your needs.