The most successful entrepreneurs rely on advisors and experts to provide insight in areas of their business they don’t have the time or expertise to fully devote. Yet, we still see so many business owners doing their own accounting, or trusting employees with limited accounting backgrounds to manage their company’s financials. Using an outside resource to manage the financial end of your business can provide peace of mind and allow you to focus on what you do best.
Debunking Common Setbacks
Why wouldn’t a business owner outsource accounting to the experts? Below are a few of the common reasons I’ve heard over the past couple of years, along with more insight into the situation and how we can help.
“Our processes and procedures work for us.”
They say, if it’s not broken, don’t fix it. But if you see errors in your financial data, gaps in reporting and timing delays in receiving information about your business, consider outsourcing.
“We like to work from paper.”
While businesses in certain industries might need to maintain paper records for regulatory or compliance requirements, most do not. Having a virtual accounting solution can eliminate practically all paper. Wouldn’t it be nice to eliminate those beige file cabinets around your office?
“I really don’t need to receive financials any sooner than I’m already receiving them.”
You might close your books months after the end of the period, or may not even close them at all. You might use the bank balance as your guide. Having an expert provide financials on an accrual basis can provide insight into the funds coming in and going out of your company. They can tell you why certain things are happening in your business and foresee events to come. A massive 82% of failed businesses are attributable to cash flow problems, according to a study by U.S. Bank.
“The systems we have in place are fine. We don’t really have a need for the technology.”
While we don’t understand it, some businesses are OK with pen and paper, or going as far as excel spreadsheets. Outsourcing accounting solutions utilize a lot of technology, which can provide missing processes, procedures and efficiencies.
“Having an outside accountant is going to cost me too much money.”
You might be doing the books yourself without having to pay anyone, but imagine how your business could grow if you had that time to focus on revenue generation? Or you may be considering hiring a bookkeeper. Outsourcing typically saves a business money by eliminating the need for internal accounting staff. A good outsourced provider has a variety of experiences from which a business can draw, sometimes decades or even centuries of experience. They catch errors and provide foresight into potential implications down the road.
Can you afford not to have financial experts assisting you with your business? Contact an Anders advisor to learn how we can benefit your business, or learn more about Anders Outsourced Accounting Services.All Insights