While it may initially make sense to handle the accounting and bookkeeping in house for your business, there does come a time to consider outsourced accounting and advising services. There’s no doubt that the key to running a successful business lies within accurate and timely accounting. However, as your business grows, you may find that your time is more valuable spent on things other than bookkeeping.
Triggers for Outsourcing
There are several “triggers” that also may suggest it is time to look into an outsourced accounting service. If your business is experiencing one or more of these issues, it may be a good time to consider outsourcing your accounting.
- Entering the accelerated growth stage in the business lifecycle
- CEO no longer able to be involved in all aspects of business
- Accepting outside investor capital
- Employing eight to ten people
- Reaching more than $1 million in revenue
- Needing more services than QuickBooks can offer
- Needing more advanced financial reports for decision-making
The Benefits of Management Accounting
When a business owner is no longer involved in every aspect of the business, that is when the business needs to take on processes beyond just bookkeeping. Bookkeepers typically handle billing, collections, payroll, deposits, bank account reconciliation, basic financial statements, and sales tax. Tasks beyond that require a different level of involvement.
Successful businesses need both financial and management reports for their company, especially when experiencing rapid growth. Financial reporting ensures that your books are maintain and you’re in compliance – services a bookkeeper can provide. Management reporting helps you to make business decisions based on key performance indicators and real-time data.
Outsourced accounting can serve as a strategic advantage. Some business owners see outsourced accounting as a way to move up to management accounting more quickly. Outsourcing can offer competitive advantages that allow them to be the best in their business without extra upfront time or money investments.
Outsourced accounting will help you make more insightful business decisions. Business owners that have a thorough understanding of the financials are more prepared to drive the business forward and can consider other important questions such as:
- How should I invest my marketing money?
- Should I hire more employees? Can I afford it?
- Who are my most profitable clients?
In order for your business to continue growing, you will need this type of in-depth knowledge. These questions are ones that cannot be answered by the average business owner or bookkeeper. Outsourced accountants can help you find the answers to these questions and help you make strategic business decisions.
Needing Services Beyond Bookkeeping?
At Scenic City Business Solutions, we have experienced accountants that can assist your business with management accounting. Give us a call at (423) 777-4822, email us at email@example.com or complete our online contact form to start working on your payroll solution today.