If you are a business owner or are looking to start your company, you would understand that accounting and finance are the backbones of your operations. Without the results of the accountancy and finance practice areas, it would be difficult to make informed business decisions that would allow you to achieve your goals.
That said, while a lot of business owners decide to handle their accounting and finance on their own. They do a DIY as this is the cheapest method to go because you don’t have to pay for any professional fees. However, accounting and bookkeeping are much more complex than most people think. It’s not just keeping track of the cash flow, but it also entails tax compliance.
Established businesses with a complex business structure will tell you that hiring a professional makes life a lot easier since they are experts in this field. Moreover, instead of hiring an in-house accountant that requires you to pay benefits, outsourcing your accounting services makes more sense. Outsourced accounting services involves finding the perfect time to do so and below are the best times to seek outsourced accounting partners.
1. The start of the fiscal year
Transitioning to or seeking outsourced help at the start of the year gives your company enough time to complete such. This time of the year is usually when most firms are busy improving and reformatting systems. Additionally, by this time, your general ledger will be relatively empty, so the new partner will be able to see the ins and outs of the business as the days go by, and will give your accountant time to correct any errors and improve the accounting process employed by your business.
2. The end of the fiscal year
Hiring new outsourced partners at the end of the fiscal year may not give them the same leeway to correct miscalculations; however, they will be able to get a good grasp on the company’s financial activity and analyze the events of the entire year. This will allow them to guide you in your budget plans and financial decisions for the next year. By this time, they may also help you prepare your taxes and refine financial reports in time for tax season.
3. After tax filing
If you are looking to outsource accounting services or an accounting partner, it is great to do so after tax filing. This is because you would be able to show them where you left off based on your latest filed tax information. This will give the new team the ability to gauge your financial operations and be able to familiarize themselves with both operational and financial aspects of your company
When You Should Outsource
It is also vital to know the signs when you should finally outsource your accounting. If you are still tethering on the edge of a decision, here are some of the key indicators that it is time for you to seek outsourced financial and accounting help.
- Your records are messy
If you have noticed that it has become hard to keep track of all financial transactions, and your books are all over the place it is time to seek help. Having messy records can lead to numerous errors in the business, and will give you problems with tax filing, securing loans, seeking out possible clients, and figuring out the company’s clear financial position.
- Accounting is not your expertise
Accounting is important to a business. However, not everyone is equipped with the special skill to do it properly. Noteworthy, you do not have to be an accounting expert to be a good business person, as the required skill set would often fall on the management side. If you find that while you are a good business and operational manager, you have a tough time dealing with accounting and finance, this is a key indicator that you need to outsource accounting services.
- Your in-house accountants need extra hands
Even those with in-house accountants may need to outsource extra services. This is mostly the case for companies that are constantly growing and experiencing peak seasons. These scenarios can resort in overwhelm for your company’s accounting department and staff, which may see the need for extra hands.
- You need more time to focus on the core of your business
If business growth is your priority, and you have noticed that you spend a whopping amount of time on accounting on your own, you should seek outsourced accounting partners. Doing so will allow you to reallocate that time to focusing on the core of your business, like marketing, product development, expansion, branding, advertising, etc.
Are you looking for a business ally that can help you with accounting? Call our team of CPAs for assistance. Take advantage of our 30-minute consultation to explore what we can do for you.
