Using an Outsourced Accounting Service as a Tool for Business Growth
While hiring an accounting service may seem like an added expense, it’s one that is not only worth it for your sanity (buh bye stress!), but it can be used as a tool for scaling your small business and strengthening your company. Here are Simple Startup’s 7 reasons why you should consider outsourcing your accounting.
1. Less Stress
Keeping your company’s finances accounted for can be stressful, if you’re doing it on your own, even more so if you don’t know 100% what you’re doing. Since studying to become a CPA is probably not your top priority, hiring a small business accountant will ensure everything is being done by the books! And there’s a big chance that you will improve your blood pressure, amp up your sleep, and cut your caffeine intake with this simple step.
2. More Time
If you own a small business or a growing startup, chances are you have a lot going on day-to-day, from hiring new team members to identifying sales, from business development to raising capital with blood thirsty investors. I bet it would be fair to say, you’ve spent some time wishing you had more of it. If you’re acting as your own accounting service, you’re essentially tacking on a full time job to your to-do list. Cutting that extra time spent managing the accounting by hiring an accounting firm for startups would free up hours in your week that you could use to focus on more important things. Things like going to networking events, coaching employees, or even taking a much deserved breather and binge watching the latest Netflix series (Ozark anyone?).
3. Vacations Are No Big Deal
As a business owner you well know that your business never sleeps (they and toddlers have that in common), but unfortunately you do sleep. You also go on vacations and need to tend to kiddos, family, the weeds… This is another reason why you should hire an accountant for your business. An accounting firm doesn’t leave you hanging to go on a holiday or sleep off a cold – they have staff around the clock to keep your finances in tip top shape.
4. They’re the Experts
Some things make sense to DIY. Painting your bedroom is an example where doing it yourself can be a fab idea. It saves you money, it can be fun, and it’s a relatively low risk activity to do on your own. Other tasks, like your business’s accounting, are better off left to a professional (CPA, CFA, CMA, all the acronyms!). Like dental exams and trimming your own bangs, accounting is not fun, nor is it low risk if you screw it up. We suggest leaving it to the experts.
5. Accuracy and Consistency
The margin of error for small business finances is not very big. You need accurate numbers to have a clear picture of your company’s health, seek business loans, raise investor capital, and lay low with the IRS. Hiring a professional accountant will reduce the risk of mistakes and increase the credibility of your numbers. Allowing you the accuracy and consistency required to pass audits with flying colors, meet GAAP compliance, and have great visibility into your financial trends & key performance indicators.
6. Outside Perspective and Clarity
It’s very difficult to see things clearly and without bias when you’re head down in your business and your personal interests are at stake. As a business owner and entrepreneur your time is better spent on your business’s growth strategy – you need to be able to make smart decisions based on concrete data. Having an accountant – someone with a CFO mindset – to sum up your business’s financial health can be a good way to prevent an ignorance is bliss type attitude.
7. CFO-Level Strategy
As your business grows (wahoo exciting!) your company’s needs will change. Multiple revenue streams, capital expenditures, and cash flow from investors will add more complexity to your books and decision making. Small business accounting services are able to provide varying levels of support from a bookkeeper through to a controller and expertise covering your business’s taxes, finances, accounting and strategy. Accounting firms can provide more cost effective services by utilizing their staff across a project and are able to pass these savings on to you. Hiring all of these team members internally would cost a small fortune.
More Than Just
Do you still think using an accounting service is “just” an added business expense? We didn’t think so! Stay sane and give yourself the opportunity to work on your business and not in your business by hiring a partner in your company’s finances. We invite you to book a call with us if you find yourself challenged by the accounting tasks of your growing business.