When it comes to running your business, you may take the approach that handling as much as possible in-house is the way to save cash and “be lean.” But, many business owners find that it can be incredibly challenging to take on all of those additional duties, which might range from IT functions to filing taxes to payroll.
When it comes to handling your company’s full range of accounting services, you might be able to handle these internally for a time, but there are signs and signals that you’re probably taking on too much. So, how do you KNOW when it’s time to outsource your accounting functions? Here are a few clues…
1. You Don’t Have Time to Manage Your Business
If you went into business to manufacture widgets, fix cars, or serve corporate clients, you may not be able to focus on this if you’re worried about day-to-day accounting functions, weekly payroll, and quarterly tax filings. When these items are interfering with your core business, it’s time to outsource.
2. You Lack the In-House Accounting Staff and Expertise You Need
Maybe you haven’t prioritized hiring in-house bookkeeping and accounting staff, or you simply don’t need someone on the payroll full-time. When you outsource, you will only pay for the time and services you use, and you’ll have full access to the professionals you need to get the job done right.
3. You’re Missing the Financial Data to Make Strategic Business Decisions
When you don’t have timely and accurate financial data, you can’t make the decisions that will help you sustain and grow your business. First, you won’t be able to see problem areas that need to be addressed quickly, saving your company time and money. Next, you could miss some golden opportunities to take your business in a more profitable direction. When you outsource your accounting functions, you’ll be in the best position possible on all fronts.
4. You’re Missing Tax Filing or Other Deadlines
If you’re missing tax filing or financial reporting deadlines, it’s time to outsource your accounting duties. Further, taking this step could ensure that your business is optimizing every possible tax-saving opportunity considering the laws change so frequently.
5. You Need Help Managing AR to Improve Cash Flow
When vendors and customers fail to pay on time, it puts your livelihood at stake because collections can lead to cash flow issues. Accounts receivable can be a lot to manage in-house, so it makes sense to outsource this function to make the process more efficient.
6. You Don’t Have the Latest Technological Tools
Accounting, tax filing, and financial reporting software isn’t cheap. Beyond the cost, you may not have the in-house expertise to use these tools and keep them up-to-date. When you partner with a reputable accounting firm, you’ll often get access to the latest tools, or at the very least receive some training on how to use them.
Small Business Accounting Made Simple
Orcutt & Company aims to help small businesses that are overwhelmed with their finances and accounting functions. Our firm offers comprehensive financial and accounting services to clients throughout the Cincinnati area. Contact us today to learn more about how our services can assist your business.