Which do you think is more important for your business — coming up with big-picture ideas or looking into the nitty-gritty of running one?
For CEOs and entrepreneurs, big-picture ideas are often top of mind. But to efficiently manage a business for the long haul, it’s important to remember the devil is always in the details. Oftentimes, these details take the form of numbers.
At the base level, accounting entails crunching the numbers, whether you do it in-house or when you’re outsourcing accounting services. But if you think that’s all there is to it, you’re sorely mistaken.
In business, you must attain a certain level of sharpness toward your finances so your accounting department — and, therefore, your company — runs smoothly. Why is it so important to be efficient and organized in this regard, you ask?
For one, it’s mandated by law. Your company’s financial records must comply with the standards and regulations of your state or location.
Another reason is it will do your company a ton of good to stay on top of its transactions. You need to know the top revenue and cost centers. By doing so, the next steps you take for your business are well-informed.
So yes, having accountants on your team is basically a necessity. The catch is accountants are unbelievably expensive. If you’ve put off hiring accountants because of cost, then this article could be life-saving for you.
But cost reduction only scratches the surface. There are more telltale signs of your company being in urgent need to outsource accounting services. Let’s see if they apply to you.
7 Telltale Signs You Need to Outsource Accounting Services
Sign #1: You Did Not Take up Accounting
Every business needs a team of accountants. It’s vital to a company’s survival, longevity, and success. But not every business owner is engaged in providing accounting services. And so, either your knowledge of this field is limited, or you have other things to do that are of higher priority.
If you didn’t take up accounting in university, chances are you didn’t — and don’t — want to do the work an accountant does. What you want to do is lead a business. But to lead a business well, you would still need certified public accountants (CPAs) and accounting staff by your side.
So, the first telltale sign that screams you need to outsource accounting services is the work of an accountant has nothing to do with your core responsibilities.
Sign #2: You Don’t Have Accountants at the Moment
Having no accountants is a pretty urgent matter, and there is no sign more glaring than this. If you don’t have accountants right now, you might want to choose to outsource instead of hiring in-house.
Aside from giving you highly qualified candidates for the job, outsourcing also speeds up the process of integrating new hires into your company. You quickly augment your team!
You also minimize risk by outsourcing accounting services. Hiring accountants in-house could result in new hires deviating from your process. Through outsourcing, you ease the burden of training and monitoring your new accountants with regard to your company’s accounting process.
For example, at NarraSoft, we make sure our vetting of candidates is fast without sacrificing the quality of our screening process. Plus, we’re transparent about our system, so you can see whether the way we work works for you.
Need excellent accountants ASAP? Feel free to contact us to see how we can help you get them in no time.
Sign #3: Accounting is Not Your Company’s Primary Focus
A company not primarily engaged in providing accounting services should not be investing so much of its time and resources into this kind of work. Accounting is essential, and every business needs to organize its financial records efficiently. But not at the expense of the company’s core activities.
Hiring accountants in-house is advisable for accounting firms. They would want to fully immerse their own professionals into their company culture and give their people their own brand of training. On top of these, accountants are costly, particularly in the US.
There is huge investment in terms of management, resources, and time. But it makes sense for accounting firms to do this because that’s what they do.
However, if you’re not an accounting firm, your main goal in relation to accounting is to simply get accounting work done. You can do this, at a fraction of the cost, by outsourcing accounting services, which brings us to the next telltale sign.
Sign #4: Your Budget Calls for a More Economical Solution
As the adage goes, don’t bite off more than you can chew. If you’re a small company or a startup, you have to seek ways to allocate your resources intelligently. A report in Investopedia notes one of the main reasons why businesses discontinue operations is they run out of money.
It can be because they overspent, or perhaps the business wasn’t profitable in the first place. But the point is you can prevent this from happening to you by minimizing your business’s costs.
Hiring a team of accountants in-house will lead to expenses on top of other government-mandated benefits. But through outsourcing, all you need to do is pay for a singular stipulated cost in a contract, an amount that has been carefully valued to meet your needs.
Sign #5: Your Business is Rapidly Expanding
Is your business growing at a rate you had not expected? If so, congratulations! The kicker is you’re now under pressure to scale up your accounting team fast. The more your business expands, the more transactions it will make.
Keeping tabs on these transactions is a significant function of accounting. And as your business grows, so does your need for bookkeepers, accountants, and CPAs. Not only this, but you will also need to augment your workforce. This means you’ve got more people to take into account and more salaries to process.
So if your business is rapidly expanding, pat yourself on the back. But also, consider the forward-thinking strategy that is outsourcing accounting services.
Sign #6: Your Accounting Files Are a Mess
How do you tell when your financial records are a mess? Well, one indicator could be that you’re relying too much on accounting software. Sure, there are user-friendly tools to help you organize your financial records. Just look at QuickBooks and Xero! But having them will not suffice if there is no human mind to manage and sift through the data.
If your accounting records are a mess right now, outsourcing accounting services can turn your records into valuable data quicker. Instead of going through the entire recruitment process, you can partner with an experienced outsourcing company capable of giving you the qualified talent you should have.
Sign #7: You Want to See Your Company Grow
Do you envision your company to succeed and thrive to an unimaginable degree? Are you constantly coming up with ways to optimize your operations or hone the skills of your employees? Do you make it a point to evaluate your business plans and their execution regularly?
If you said yes to all these, then you’re committed to scaling your business to new heights. You have a strategic mind that will benefit you and your business in the long run. So, what does this have to do with outsourcing accounting services?
A huge part of being strategic is being resourceful. If you hope to see your company grow, you need to be clever about where to acquire the talent you need. You can’t take action on your plans if you don’t have the right people for the job.
So when you outsource accounting services to a company or firm with years of experience, you’re doing the smart thing. You’re partnering with a team that has screened candidates for you so you know the people your partner company endorses are highly qualified.
And despite on-boarding excellent talent, you wouldn’t need to pay the regular costs of having expert CPAs and accounting staff integrated into your company. Your expenses are reduced by more than half! Outsourcing is a win-win situation, especially because you also get to partner with a group that values your business as much as you do.
In Summary
The seven telltale signs of you needing to outsource accounting services are:
- Your responsibilities are outside of accounting work.
- You lack accounting talent.
- Accounting is not your company’s primary focus.
- Your budget requires an economical solution.
- Your business is rapidly expanding. Congrats!
- Your financial records are a mess.
- You want to see your company grow.
Are you looking for professional CPAs and accountants at an affordable price? At NarraSoft, we treat your business as though it were ours, so we ensure its financial health is constantly in good shape.
Partner with our accountants today to accelerate your business growth!
Send us an email at sales@narrasoft.com or send us a message on our chat box or contact form.
Other sources: Investopedia