9 Signs it’s Time to Outsource your Accounting
Posted on 10th August 2021 at 15:59
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Most small businesses fail in their first few years because of cash flow problems. Usually, they have too many unpaid invoices and late payments, their outgoings outweigh their in-goings, and they struggle to build a consistent cash flow.
What many business owners do in these first few years is try to do everything themselves. From a cash flow point of view, this does mean that they make some savings initially, but in the long term, they don’t grow as quick and build a business and cash flow that is sustainable.
We may harp on about how it is so essential that business owners bring in an accountant as soon as possible, but we have our reasons for it! Firstly, you are busy enough without wasting time and resources on sorting and managing your own accounts. And secondly, accounting has many facets and is an intricate and complex task. Get it wrong and it can be very costly!
To help you decide if you could benefit from outsourcing your accounting, here are 9 signs that it’s time. After all, accountants are strategic professionals who can help with many other business areas too…
Are your outgoings out weighing your earnings - struggling to maintain a constant and stable cash flow ? It's time to invest and consider getting yourself an accountant. Find the time to run and focus on your businesss! Let the professionals do what they're good at...
1. You Don’t Know what you’re Doing
Harsh as it may sound, as we said, accounting is broad and complex. If you try to do it yourself, it will take longer and you’re far more likely to make mistakes. Mistakes are very costly in the accounting world!
2. You’re Invoicing Late or Getting Paid Late
Sending invoices or chasing payments tends to fall down the list of priorities. It’s crazy when you think about it as it is these tasks that ensure we get paid for the work that we do, but alas, many business owners tend to concentrate on providing the best possible service and growing their business.
Although these tasks are ‘unprofitable,’ they are essential to building a consistent cash flow. An accountant can help you automate this process and manage the chasing for you.
3. You’re Falling Behind in the Market (technologically speaking)
Are you using outdated systems? Are you struggling to embrace apps and software that you know will keep you competitive? Do you not know where to start?
Every business needs to improve its processes. They need to streamline how they work so that they can work smarter, not harder and they need to improve customer experience. An accountant can help you do just that from deciding what is the best for your business to integrating the system and providing training on it. Many accountants are cloud-accounting experts now so they can help you keep your finger on the pulse.
4. You’re Not Getting the Most Out of your Tax
Tax legislation is confusing and is subject to change. If you don’t have a professional to spearhead this, then your business won’t be as tax-efficient as possible. Accountants are experts in strategic tax planning so they can identify important tax opportunities and help you claim everything that you can.
5. You Don’t have Time to Focus on the Business
Day-to-day accounting functions take up valuable time and resources. Business owners have enough to do every day and they are already wearing multiple hats, so why add more to an already full plate?
If you’re so busy IN your business that you can’t work ON it, it’s time to outsource your accounting. Why waste time doing these tasks when you could be focusing on growing the business?
6. You Lack the Staff and Resources to have In-House or Full-House Accounting
You don’t have to hire someone full time to do your accounting – it’s expensive! Plus, if you lack the staff or resources for this anyway, it’s a double win. Outsourcing your accounting gives you the best of both worlds: everything gets taken care of efficiently and to a high standard and you get access to a financial advisor as and when you need them.
7. You Struggle to Make Big Business Decisions
Some decisions are crucial in business and it’s difficult if you don’t know the best avenue to take or the consequences of each choice. By outsourcing your accounting, this becomes so much easier. Not only can accountants give you the financial data you need to make the best decisions, but they can also help you forecast these decisions and give you sound business and financial advice.
8. You’re Growing too Fast or Not at all
Do you have growth goals but you don’t know what to do to achieve them? Maybe you have no problem growing but you’re struggling to keep up with this growth? Whatever your issues when it comes to growing sustainably, an accountant can be an invaluable guide. They can help you build your business plan and then tweak your processes and systems to help you get there.
9. You Worry a Lot!
You can’t put a price on peace of mind and that’s what accountants give you. Do you worry about your business finances and being able to pay your employees? Do you worry that you’re doing something wrong or about what you don’t know, both of which could lead to fines? Do you worry that you’re missing opportunities for growth? If you outsource your accounting, you get an expert who takes care of your accounts, payroll, budgeting and yearly filing, but most of all, you get complete peace of mind that everything is being done and a newfound confidence that you will achieve your business goals.
Call your friendly Farnborough Accountant today
We are Specialist Accountants serving plumbers, builders, electricians and all other trades, providing business advice, compliance, bookkeeping, CIS, tax returns, payroll, VAT, management accounts and cash flow forecasting
Or call us on 01252 856 150
Book a half an hour discovery meeting with us - find out how we can help your business
Tagged as: accountants for small businesses, Accountants for trades, Accountants in Farnborough, Accounting for builders, Accounting for electricians, Accounting for Plumbers, Accounting specialist in Farnborough, Business blog, here to help, Peace of Mind, tips and advice, Unburden yourself
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