When a business enjoys increased growth, certain tasks can suddenly feel more time-consuming than ever before. With new demands that arise from a growing customer base and more orders, a small team must adjust to changing dynamics while continuing to run the business smoothly.
One secret to long-term business success is effective time management. When business owners and teams have strong time management skills, more work is completed in a shorter amount of time. Unfortunately, research conducted by Harvard Business Review indicates that employees spend roughly 41% of their time on activities that could be handled competently by others. Proper accounting is one such example.
While every business needs a bookkeeper to manage payments, billing, and cash flow, entrepreneurs should consider outsourcing their accounting needs. Taking this step is a great way to free up time to focus on continued growth strategies, making the business the best it can be.
Hiring an in-house accounting professional, such as a CPA, might make sense for certain businesses. However, for a steadily-growing business facing increased demand and spending, outsourcing your accounting services is a good way to keep focus high, organization strong, and costs manageable. This is especially true as accounting becomes more complicated with business expansion—multiple entities require more than basic Excel spreadsheets for advanced accounting accuracy.
A professional accounting service will work with a business closely to ensure that it is not losing money, and to make certain that the best possible financial decisions are being made. Additionally, outsourcing could mean that important financial tasks receive greater focus and attention, while a business is able to save money on a part-time or full-time employee salary (and associated onboarding expenses).
Another reason why outsourcing accounting services can be beneficial is that they often have access to some of the best software solutions for a fraction of the cost. Small business owners can avoid the hefty price tag and time commitment of installing sophisticated programs on their own.
If a business is experiencing steady, predictable growth every year, it will need to shift from the more base “survival” instincts it started out with to a growth mentality. A mindset of growth is categorized by flexibility, resilience, and a healthy risk tolerance, to name a few.
It will always be a risk to try something new, but in the case of a growing business, trying new things—and trying new things often—is necessary for success. While hiring part-time or full-time accountants is perfectly reasonable, adopting a more flexible financial model is more beneficial for a company in the long run. Outsourcing financial services enables a business to scale without increasing its employee headcount, or its number of fixed salaries.
Ultimately, pursuing outsourced accounting services paves the way to better time management, potential dollars saved, and a more flexible work model for a growing business. Trusted CFO Solutions can help entrepreneurs work toward these efforts. Contact us to learn more.
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