When is it Time to Outsource My Business's Accounting?

It can be challenging to manage all accounting work in-house. But how do you know when it is time to outsource it? Does it make sense to hire a qualified accountant to prepare your financial statements, pay bills, analyze financial data, and manage bank account transactions? Below are a few situations that indicate it may be time to seek outside help for your accounting needs. 

1. When Your Current Accountant Feels Burnt Out

Your accountant may feel burnt out because they aren't qualified or feel overwhelmed and confused, which can result in mistakes in your financial reports. Ask yourself if accounting is a good use of your or your employees' time. Or would it be better spent growing your business? Outsourcing the work can allow you to focus on strategic goals and operations.

2. When Your Business’s Books are too Complicated

When starting your business, it can seem easy to perform all the duties, including accounting. But as soon as it grows to a certain level, you need a qualified accountant. It may be too early to hire a full-time employee, but outsourcing may be a more economical option.

Growth is expected as new businesses expand, and the books can become problematic if whoever is wearing the accounting hat can't keep up. When you expand, the business may need new staff and integration of processes and controls; outsourcing can offer you a flexible option.

3. When Your Current Controller or CFO Retires or Quits

One thing is for sure, the labor market is difficult at this time, and you may need a solution when your current accountant retires or quits. It may take some time to find a worthy replacement, and outsourcing allows you to hire an experienced professional to help with accounting duties. With outsourcing, you can hire a professional that understands current business trends in your industry, so there likely won’t be a long adjustment period.

4. When Your Current Accounting Team Isn't Bringing Relevant Information/Insights to Your Attention

Having relevant and current information is necessary to run a successful business. If you aren’t gaining valuable insights from your finances, it may be time to look toward outsourcing. An outside firm brings recent industry expertise and access to premier technology you may not otherwise have access to.

The right software can automate tedious tasks and evaluate trends in data to provide insight that can help you make decisions to grow your bottom line. If you feel like the technology your business is currently using isn’t saving you time or providing actionable insights, an outsourced accountant can help.

5. When You Need to Improve Your Accounting Process

Outsourced accountants have years of experience with different accounting processes. Sometimes an outsider can bring a fresh perspective to current processes and share ideas to improve accuracy and efficiency. New ideas can help you to streamline the business, which aids in growing your bottom line.

6. When You're Suspicious of Fraud

Unfortunately, fraud is much more common than we’d like it to be. You may face a time when suspicion grows, and you fear you may not have the resources to enforce strong internal controls. Companies with less than 100 employees are more susceptible to fraud cases. Accountants know the red flags to look for and prevent one person from having the ability to commit fraud.

Bottom Line

If your business could benefit from outsourcing its accounting, we can help. We have a team of experts who can help you reduce your accounting workload and streamline operations. Contact us to learn more about outsourcing your accounting.