Are Your Business’s Financials Keeping You Awake at Night?
Smart business owners know that sound financial management is key to the success and growth of their companies. However, managing the right mix of talent and expertise in your finance department can be a challenge, especially as your business expands.
Growing Financial Complexity
As businesses continue to adapt and evolve in 2024, financial management has become more complex. Whether you’re facing staffing transitions, struggling to keep up with technology changes or simply overwhelmed by the increasing demands on your time, the signs are clear that it may be time to reassess how you handle your company’s finances.
Here are some key indicators that outsourcing your accounting might be the right solution:
- The Wake-Up Call: Missed Deadlines or Inaccurate Reporting
Has your company missed important deadlines or delivered incorrect information on taxes, payroll or financial filings? If you’re not on top of things, it’s easy to miss key deadlines — and if your internal team isn’t keeping you informed, it can quickly lead to trouble. When the Internal Revenue Service (IRS) or state tax agencies come knocking, it’s more than just an inconvenience; it can have serious consequences for your business.
- Staffing Challenges and Transitions
What happens when a long-time employee like your trusted bookkeeper retires or leaves? Or when your search for a qualified financial professional drags on longer than expected? Staffing changes in the finance department can be disruptive, and until you find a replacement, your business’s financial oversight may take a backseat.
- Wearing Too Many Hats
As a business owner, you may find yourself spending far too much time managing day-to-day accounting tasks, leaving you little time to focus on running and growing the business. If your bookkeeping responsibilities are starting to overwhelm you, it could be a sign that you need external support to keep the financials in order and allow you to focus on what matters most: managing the business.
- Outgrowing Basic Accounting Software
When your business was smaller, simple accounting software may have been enough. But as you grow, you may find your software struggles to keep up. Perhaps it’s no longer able to integrate with other financial tools, or the month-end close has become a time-consuming task that involves endless manual entries. To make data-driven decisions, you’ll need a more sophisticated approach to financial reporting.
- Needing More Strategic Financial Insight
In addition to day-to-day accounting tasks, your business may require higher-level financial management, such as budgeting, cash flow analysis, or forecasting. If your company is preparing for expansion, a funding round, or any other major growth initiative, you may need more strategic financial guidance. Outsourcing controller or CFO-level services can help you stay ahead of the curve and execute a plan for long-term success.
Taking the Leap: Why Outsourcing May Be the Answer
Outsourcing your accounting functions may feel risky, especially if you’re used to managing everything in-house. You might be concerned about losing control or complicating communication with your team. However, an outsourced accounting provider brings specialized knowledge and an objective perspective to help identify and resolve issues quickly. Plus, they’re already up to speed, so there’s no ramp-up time for training.
More importantly, outsourcing eliminates the time-consuming search for qualified staff and avoids the delays that come with hiring, onboarding and training new team members. Many outsourced accounting teams also offer flexible communication, ensuring you’re kept in the loop with regular updates and available to answer any questions.
The Outsourced Accounting Spectrum
Outsourced accounting services span a wide range of tasks, from basic transactional work to high-level strategic support. On the more transactional side, outsourced services include:
- Accounts payable (A/P) and accounts receivable (A/R)
- Bank reconciliations and general ledger management
- Financial reporting and statement preparation
- Sales and use tax filings
- 1099 preparation
On the strategic end, outsourced providers can offer services such as:
- Budgeting and financial forecasting
- Cash flow management
- Customized financial reporting
- Business planning and market analysis
- Tax planning and consulting
- Due diligence and corporate financing support
- Mergers and acquisitions assistance
Outsourced accounting services can be billed hourly, at a fixed monthly rate or on a per-project basis, depending on your business needs. For example, a one-time financial cleanup might be billed hourly, while ongoing services like monthly financial reporting or CFO-level support might be priced on a retainer or project basis.
Getting Started with Outsourced Accounting
If you’re considering outsourcing some or all of your company’s financial management, here are a few steps to help you get started:
- Choose a Provider with Relevant Experience
Look for an outsourced accounting firm that understands your industry and the unique financial challenges your business faces. There are providers that specialize in small to mid-sized businesses, as well as specific industries like not-for-profits or tech startups. - Identify Which Functions to Outsource
Many businesses start by outsourcing basic accounting functions like accounts payable and receivable and expand to more complex services as needed. Consider where your internal staff is stretched thin and what functions would benefit most from external expertise. - Vet Your Potential Providers
Before making a decision, interview potential outsourcing partners. Here are some key questions to ask:
- How will they work with your internal staff and communicate with you?
- What is their process for handling unexpected issues or complications?
- What are their billing practices, and how do they handle additional fees if unexpected tasks arise?
- What will your monthly reporting look like, and how often will you receive updates?
- Do they have experience with special projects like securing funding, managing equity investment, or handling mergers?
Focus on What Matters Most
Your time is valuable, and as a business owner, it’s best spent on growing your business and making high-level decisions — not managing the minutiae of accounting. An outsourced accounting partner can provide the expertise, efficiency and strategic insight needed to keep your financials in order and free you up to focus on scaling your business.
At Windham Brannon, we specialize in providing tailored financial solutions to meet your business’s unique needs. Reach out to Jodie Bartock and Rebecca Smith to learn more about how our Outsourced Accounting Services can help you succeed.
