Up to date accounting is key to knowing where your business is at and where it is going. It’s a vital part of the business, but that doesn’t mean it has to take up your weekend with haphazard spreadsheets and boxes of receipts. That just takes you away from building the business and achieving revenue growth.
1. It’s not your area of expertise, so get a small business accounting expert who can do more than just accounting
Whilst you may be able to handle the basics, an accountant can bring you way more than just some boring reports. From cashflow analysis helping you get finance for working capital needs or giving business advice on streamlining sales and collections, chances are they have been there and seen it before.
2. Your time isn’t “free”
Early on you may have time to do the accounts, or the volume may be so low that you don’t think it’s worth getting someone else involved. But as you get busier every hour spent on accounting is time not spent on the rest of the business. That is a cost to the business now, and the future income that work could bring in. It is likely that cost exceeds the cost of an accountant, without even factoring in the incremental benefits they can bring.
3. Distractions happen, but accounts are needed on time every time
Your time is needed to close that sale, go visit the factory, fix the code, meet the investors, etc. When accounting slips, it becomes a bigger and potentially messier task. By getting an accountant it will “just happen”. The reports will appear in your email and they will answer your questions so you have the timely information to help manage your business. With cloud software like Xero you can even get access yourself anytime and from anywhere – knowing it’s updated – to answer business critical matters like “who owes us money”.
4. Accountants will save you money (personally and the business)
Got a big pile of receipts you haven’t claimed? Give that responsibility to the accountant and get the money back from the company, pronto. If you have more staff, they can run the expense claim process to make sure your policies are implemented, again saving you time. At tax time they can help advise you with how to pay staff to give them more in their pocket, and what deductions you can make in the business.
5. An outsourced accounting team gives you more efficiencies and more reliability
Whilst many firms will have a Financial Controller or a CFO, by using an outsourced firm for everything else you have the benefits of scale of services without investing in real estate to house them and people to manage them and cover their holidays, etc. You also can keep a lid on confidential activities like payroll and business results.
If you grow quickly or put the business on hold – you just need to change your accounting fee, as the business scales either up or down.