Reduce These Four Risks by Outsourcing Your Back Office
When businesses outsource bookkeeping and accounting, they reduce their risk and gain better insight.
You probably have dreams that you want to realize if you own and run your company. The problem is that you need a recipe with the right ingredients to achieve your goals. You’ve got the foresight, ingenuity, and tenacity, but have you got time, energy, and peace of mind? Smart professionals know that they need to alleviate pressure in order to expand. If their dreams are going to last, they also need to minimize risk.
Most small and medium-sized companies (including a few billion dollars) opt for outsourcing. From research and development to information technology, outsourcing functions of your business will
– allow your owners and innovators to do their best,
– reduce costs and overhead, and
– reduce risk.
For most businesses, the most often outsourced roles are “non-core” divisions. If your business fails your bookkeeping and accounting department, do not wait for appropriate action to be taken. Take the constructive approach and begin to consider contracting out these functions.
Many business owners are surprised at the impact on the bottom line of a business that a poorly managed back office has. For example, you open up yourself to employee error when the person running your accounting is stretched too thin. Or worse, when your company’s books fall on one person’s plate, you put yourself at an increased risk for fraud. Here are four additional risks that you can reduce by working with an outsourced reliable accounting firm.
Technology –Most small businesses do not have the time to research, evaluate, and learn or keep up with the latest channels to find one they like. When you hire a service provider, you also hire their system, which means you have access to the industry’s latest and best technology (with a service liaison, to boot!).
Compliance – There is considerable regulation for accounting firms. This ensures that you will have peace of mind when you hire an accounting company provider ensuring that the person who performs your bookkeeping and accounting is trained and up-to-date on the latest news of compliance.
Data – In business, staying one step ahead is dependent on your ability to respond to your financial data. When your financial statements are timely and accurate, and the person delivering the numbers is an expert, you will be able to make strategic decisions based on reliable data.
Reporting – You don’t need to survive each month with the bare essentials. An outsourced accountant can empower you to improve your financial position by running the right reports and setting up financial dashboards. You will assess your success and prevent over-expenditure if you monitor the right metrics. When you have access to easily digestible and accurate dashboards, you can quickly assess how your business is performing and identify which areas need your attention. Here are a few ways strategic reporting can reduce your risk.
– Consumers who are not successful frequently fly under the radar. Your outsourced staff will help you determine which clients are no longer suitable for your company (in their present state at least)
– Cash flow problems often occur from incomplete data or from an untrained interpretation of good data. An outsourced expert will be able to head off cash flow circumstances by synchronizing the timing of your payments and receivables, renegotiating terms, and developing predictive models, and more.
– If you do not have key performance metrics, measuring the financial success of ad campaigns and ROI from marketing efforts is challenging. Trained professionals will help you better understand the actual costs of your company and recognize the specific KPIs for your success.
Bookkeeping nuances have the potential to change your situation very quickly. In the hands of an experienced professional, accurate and timely data will allow you to focus on making informed decisions instead of reacting with your gut.
When businesses outsource bookkeeping and accounting, they augment their growth and significantly reduce their risk. Outsourcing your back office will help you maintain financial integrity and allow you to sleep better at night. Allow yourself to do what you do best. If you need help deciding which aspects of outsourcing will most benefit you, give the professionals in our office a call today.