As a small business owner, are you single-handedly taking care of almost every aspect of your business? Did you know that multitasking could be taking a toll on your productivity? Research from the American Psychological Association says that even brief mental blocks that result from repeatedly switching between tasks can cost more than 40 percent of a person’s productive time.
Do you know that you can hire a specialized accounting outsourcing firm for all your finance and accounting needs, and enjoy such benefits as cost savings, access to the latest tech tools, security and confidentiality, among others? But how do you know that it’s time for you to outsource to such a company? Here are four signs that the time might be right to outsource your accounting function.
You’re Spending Very Little Time on Core Business Activities. Inventory reporting, managing receivables and payables, payroll and other back-office functions, though critical, can take a significant amount of time and keep you away from your core business. These activities do not generate any revenue and can, therefore, hinder your business’ growth potential.
By outsourcing accounting services, you can hand over these tasks to a team of specialized experts, which will allow you to focus on such value-added activities as exploring new partnerships, improving client relationships and expanding your business. Consider these possibilities.
You’re Depending on One Person to Keep Your Books Up-to-Date. By putting all your eggs in one basket, you are essentially opening yourself up to risk and fraud. It would be very easy for that one person to make a mistake, especially if you’re too busy to pay much attention. When you outsource, you immediately set up an internal control process that protects your company and you get access to an entire team of experts who are available 24/7.
You’re Paying Too Much for Accounting Services. Apart from entrusting your financial data to a single person, you’re probably spending a lot on them in terms of salary and benefits like health insurance, sick days, paid time off, retirement and so on. By using an accounting outsourcing service, you only pay for the work you get done.
You’re Having Cash Flow Issues. Many small businesses fail to send invoices in a timely manner for goods sold or services rendered. This causes cash flow issues that can undermine them. If you have no cash flow, you can’t buy what you need to create your products, hire personnel, purchase equipment or upgrade technology. But if you have an outsourcing company working for you, you can be sure that your invoices are sent in a timely manner, so you don’t lack cash flow.
Any of these issues could be reasons to justify the need for outsourcing accounting services, allowing you to get back to doing what you do best — scaling your business.