As a business leader, you need accurate financial information to make decisions about the company’s future. If your company’s finances are a constant pain point, your business will be unable to grow; however, you might not be ready to hire a full-time accountant dedicated to your business. Enter outsourcing.
Outsourced accounting companies can help you manage not only accounting, but also payroll, taxes and financial consulting. If you’re thinking about outsourcing your company’s bookkeeping, consider whether you’re facing any of the following scenarios:
The job isn’t being done, or isn’t being done properly
This is the most important reason why you need a bookkeeper. If you are struggling to make payments on time, manage payroll or keep effective records, you need help. Failing to maintain accurate accounts will mean the end of your business. While you may have chosen not to hire an accountant or bookkeeping firm to save money, it will likely cost you money in the long-term.
You are neglecting other important duties
If all of your time is spent managing the books instead of the company, you need help. It might have made sense to wear every hat when you were the only employee, but now that there are eight it’s time to focus elsewhere. A professional bookkeeper can manage your financials much more efficiently, allowing you to focus on managing and growing the business.
You are unable to hire an in-house accountant
Perhaps your company is currently unable to hire another employee – or maybe you can, but you don’t know because your bookkeeping is a wreck! Perhaps you feel you’d have a hard time retaining a quality accountant when you cannot offer full-time work or benefits. By outsourcing, you can retain the services of an expert accountant at any level without worrying about employee overhead.
You are preparing for a financial statement audit or review
A financial statement audit is an excellent tool for demonstrating your company’s financial performance and position. An audit is a draining process, which will be worsened by shoddy bookkeeping. Because audit firms need to maintain independence, they cannot perform any accounting functions but will need to have accurate numbers reported by the company. Any work that slows the auditors will cost you more.
You are seeking capital investment
If you are approaching financial institutions for capital investment, they’ll want to see an accurate financial picture. Incomplete or incorrect information will prevent you from raising the necessary capital for your company. A bookkeeper can not only pull the correct information, but also help prepare the report in a way that will impress investors.
Investors are requesting financial projections
Investors want to know the company’s financial projections so they can both advise on major decisions and glean what their investment will return. A bookkeeping firm can prepare financial projections, serves as an expert in business operations and can account for unforeseen costs.
It’s tax season (again)
Unlike a tax preparer, a bookkeeper – even if outsourced – knows your company well enough to create a smooth process at tax time. An expert bookkeeper can help you identify deductions, prepare employee W-2s and you’re your return. Having a bookkeeper year-round will make tax time easier because your records will be tidy and your payroll taxes will have been paid.
Are you looking to hire a bookkeeping firm to manage your company’s financials? Contact us at MCG Solutions today to get started.