5 Steps to Improve your Financials from a Problem to an Advantage
Precise and current financial information can be an effective resource for developing businesses. Having accurate financial information allows business owners to be able to obtain resources, grow profitability and make better strategic decisions. However, even though financial information can bring a business owner a competitive advantage, the process of collecting, compiling, and conveying financial information can be a major strain on the company’s resources.
How can you get powerful financial information in your hands without slowing down your business to put it together? You might want to consider outsourcing your entire accounting function. Many small-business owners struggle to find the right solution for their accounting needs. Small-business owners struggle through their monthly accounting by doing it on their own and devoting precious time counting money when they could be making money.
If you are spending too much of your time managing accounting processes or find your organization isn’t getting the value it should from financial information, maybe you should consider working with an accounting firm that specializes in outsourced accounting services.
Here are a few tips to help your organization benefit from outsourced accounting:
1. Gain an understanding of available services and how they fit with your company.
More businesses are turning to outside firms to bring value to their accounting processes. When a business expands, it needs greater financial sophistication and expertise. By working with an outsourced accounting firm, a business can acquire expert services without the risk and investment of a new hire.
Many accounting firms have business service teams that offer custom financial reporting, bookkeeping, payroll, accounting technology and tax planning services. These business service teams are predominantly useful for growing businesses that need help but may not yet require an in-house accounting department. Outsourced accounting partners can provide exceedingly high-level help, whether in strategic financial planning or bookkeeping, in just the amount required by each individual organization.
2. Decide if outsourced accounting will be useful to your business.
It may be time to look for outside help if, as a business owner, you feel like you are rushing to put together financial information when an opportunity presents itself, or if you feel like you are making too many decisions without relevant information. Accounting should not be distracting key employees and business owners from the essential functions of their business. If it is, it has become a liability instead of an asset. When you are distracted from your core business practices, you run the risk of alienating customers or missing opportunities. Therefore, outsourcing your accounting needs can not only provide much needed resources, but can actually help restore the focus of your organization.
3. Have high expectations for your outsourced accounting partner.
Your outsourced accounting partner should help you by leveraging the latest technology and tools to keep you efficient and informed. Your accounting partner should help you not only organize and evaluate important financial data, but should also help you stay abreast of new opportunities and technology.
4. Select the right accounting partner.
Begin by choosing an accounting provider that has familiarity with your industry and has the resources of a full-service accounting firm. Make sure to obtain referrals and check references, as not all providers deliver what they promise. Firms that specialize in outsourced accounting for small and mid-sized businesses are generally the best equipped to bring value.
Take the time to convey your expectations before choosing a provider. This will help guarantee that your new accounting partner can handle both your current and future requirements. Be specific about what you require from the relationship – otherwise you may find yourself with a problem rather than a solution.
5. Develop both a relationship and a plan.
You want to be sure to work with a partner that focuses on building long-term relationships with its clients and is invested in your success. If your provider is truly engaged, they will spend the time to get to know you before they implement a solution. A good accounting advisor can identify critical functions that will provide strategic value to your business. Then, you can build a plan that will help you change your financial accounting into a value-creating business unit for your whole company.
If you are considering outsourcing your accounting needs, call our office today to learn more about the services we offer.