Large corporations have been engaging in outsourcing for several decades now. From sending their call centers overseas to sourcing their products through the global supply chain, these large companies have sought to reduce costs, improve efficiency and implement more streamlined operations, including accounting.
As a small business owner, you can follow the lead of these larger companies, albeit on a much smaller scale. A little strategic outsourcing can be the perfect cure for all sorts of small business problems, and here are five signs it might be time to let a professional accounting firm do the math.
1. Your customers complain
No matter what your small business does, without its customers it simply wouldn’t exist. Whether you’re selling products to the general public, raw materials to other business owners, or something else entirely, meeting your customers’ needs and meeting their demands should be your number one priority.
If you spend more time crunching numbers and filling out financial forms than meeting with your clients, it might be time for a major overhaul. When customers have started complaining, something is clearly wrong, and engaging in a bit of strategic outsourcing could give you more time to focus on the day-to-day running of your business.
2. You feel overwhelmed
Running a small business can be a bit overwhelming, especially when you’re wearing all the hats. If you’re busy meeting customer needs while sweeping floors and emptying trash cans, adding ad hoc reports to your to-do list probably isn’t a smart thing to do.
If you’re feeling overworked and overwhelmed, a little strategic outsourcing could restore your lost work/life balance and finally get some sleep. You don’t have to do everything to run a big small business, and letting an expert take the reins might be the best decision you can make.
3. Taxes are higher than before
It may not be fair, but small business owners often end up paying more than their fair share of taxes. Independent practitioners and entrepreneurs often lack the resources and understanding to keep their tax bill down, and they lack the political influence of their larger, better-connected peers.
As a result, your business could be paying more taxes than necessary, and if you’ve seen your taxes rise in recent years, it may be time to take action by hiring a CPA to analyze your finances and help you stop the tax. hemorrhage. A good accounting firm or CPA can pay for itself many times over in terms of reduced taxes, higher deductions, and a better idea of what is really going on within your business.
4. The company lacks a coherent financial vision
For accounting firms, the balance sheets and profit and loss statements generated by your business are much more than collections of individual figures. Each number on these forms is a data point, and analyzing that data is a big part of what accounting firms and public accountants (CPAs) bring to the table.
Creating a comprehensive and cohesive financial view can be a difficult thing to do when you’re busy running your day-to-day business, and outsourcing these accounting tasks could be just what you need in terms of analysis and sense of data. If your business currently lacks a cohesive financial vision, it might be time to outsource a bit.
5. The company grows
Growth is good for your small business, but it shouldn’t come at the expense of a strategic vision or overall financial strategy. If your business is going through a growth spurt, chances are you’ve outgrown your do-it-yourself bookkeeping and could benefit from something a little more professional.
Letting a professional accounting firm or individual CPA take the reins could have huge benefits for your business as it grows, including providing a scalable solution for your business and saving you money in the long run. . Strategic outsourcing at this critical stage could also give you the time and bandwidth to focus on all those new customers, which could help your business grow even further.
Outsourcing isn’t just for big companies, and even the smallest ones can benefit from letting outside professionals take the lead. If your business is growing rapidly, paying too much tax, or neglecting the customer needs that made that growth possible, it might be time to engage in smart, strategic outsourcing.
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