Most businesses in their infancy try to concentrate on their core business activity. Hence financial and accounting activities often get pushed to the periphery. Most times owners take on the onus of accounting and even tax-related responsibilities and may hire a person or two to assist them. As the business grows, the number of employees grows and so does the sphere of operations and activities yet the finance team may continue to be small and understaffed. There comes a tipping point when things start lagging especially when it comes to financial tasks. Here are the signs that give you a clear warning that it may be time to go for outsourced accounting services:
Bookkeeping takes up too much of the owner’s time: For some reason, owners prefer to keep the control of financial tasks in their own hands. But this gets increasingly difficult as the company grows. If the owner finds that they are spending a disproportionate amount of time in handling accounting and bookkeeping tasks that could be utilized better elsewhere, then it is time to seek external help. Hiring more people in your finance team or hiring a professional accounting service could be a much more efficient and cost-effective solution. The aim should be to utilize every resource optimally including the business owner.
You are always falling behind schedule: If you find that you are pushing off all your financial responsibilities to the last minute, that your paperwork is forever lagging and that your financial processes lack discipline, then you are sitting on a ticking time bomb. Your bookkeeping, receivables, account payables, invoices, expenses and revenues must be regularly and routinely accounted for. This will ensure that your bookkeeping and taxes get done on time and correctly. Financial tasks must be done promptly and systematically to ensure minimal errors.
It is hard to supervise the in-house staff: If you have a small in-house team that handles the financial processes then it is possible that you may not be able to pay adequate attention to their knowledge updation, training and supervision. They may be overburdened with work as your business scales up, and daily processes may get affected. It is best to then hire some more hands to ably handle the work or outsource it in the hands of a capable team that can take care of the bulk of financial responsibilities.
You are missing out on professional advice: If you find that you are missing the compliance, prudent tax savings or better tax planning simply because you are not aware or better guided, it is best to hire a professional accounting service. They will be able to guide you suitably so that every penny that can be saved in taxes is saved. You can also be sure that you are complying with all regulations and on time.
Outsourcing bookkeeping services can be a huge help to all businesses. They are not too expensive to hire and considering the kind of headache they help you avoid and the money they can save for you, they sure do make for a very prudent spend!