How Efficiency is improved by outsourcing finance and accounting functions:

• Improved focus on core activities: With the tedious and laborious work being outsourced, firms can take critical decisions more effectively, through putting in more research and longer discussions. Less focus needs to be given on the numbers and documentation.
• Accurate accounting through a proactive approach: With the use of the latest integrated tools, the experts increase accounting accuracy, and freeing up human and non-human resources. This approach gifts more time for financial advisors to address their client’s persistent issues. Through compiling and processing all the finance information, experts can provide valuable insights through interpreting the results. Inefficiencies can be pinpointed, growth opportunities with associated strategies can be identified, and brand credibility can be enhanced.
• Real-time accounting: One of the biggest advantages of outsourcing accounting and financial work is that the task is one is in real-time, unlike traditional accounting. This helps to track the performance of the firm on financial and sales metrics by conveying the information in a comprehensible and accessible format. Firms can be rest assured that traditional accounting is not eliminated, but rather supplemented by real-time accounting.
• Meeting deadlines: Firms that tend to fall short on compliance deadlines are heavily benefited by outsourcing financial and accounting tasks, as their deadlines are timely met. If these compliance deadlines are met periodically, getting third party funding becomes viable. Notifications and timely alerts of deadlines are sent by the outsourced firms to the overburdened and busy management.
• Irregularity detection: As the outsourced firm’s accounting team is highly skilled and has huge expertise in the domain, accuracy is top-notch, ensuring that accounting is irregularity free. If any such error pops up, the firm is informed immediately, unlike at the end of the period. All complexities in accounting are taken care of by the outsourced firm only, by skilled professionals, which would otherwise trouble the firm heavily.
• Managerial flexibility: With the functions outsourced, firms have the liberty to add and subtract staff anytime; and fixed costs are converted into variable costs.
• Cost efficiency: By outsourcing the functions, the highest grades of accuracy are achieved at costs lower than normal. Quality is uncompromising as the functions are carried out by skilled professionals, not the firm’s trained team or normal employees. Firms would eventually save on training costs, retaining, overhead costs, and finding people. Firms indirectly save on employment taxes and infrastructure costs.
• Security: With outsourcing, firms face a dilemma whether their data will be safe; but outsourcing firms guarantee confidentiality, privacy, and security of data. The files are uploaded to the firm’s cloud server through remote access or a secure server. Data is backed up on multiple servers for efficient disaster management and data recovery, with risk mitigation.

Key aspects while selecting outsourcing accounting and bookkeeping functions include performance, efficiency, and experience. Testimonials and clientele of the client also should be thoroughly checked to assess the services rendered. Other functions that can be outsourced include bookkeeping, payroll, and its processing, payment creation, debtors follow-up, and reporting to authorities and management. With the benefit of low-cost carrying out of complex accounting, the firm can go with flexible contracts or scaling the functions.

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Do I still have enough knowledge to be handling my own finances?

Let’s be honest, most business owners don’t have a ton of experience or education on managing accounting or financial duties. However, it’s usually how it starts in order for you to get up off the ground. With that said, as your business grows, the accounting usually becomes a bit more complex and there are more factors to think about (tax, growth strategy, raising money, international sales, etc.). It’s important to eventually move to an expert to get full support as your business starts to expand and grow.

Do I have time to handle the finances, and do I want to?

You are probably only doing this to get it done for reporting or tax purposes, not because you want to. You also would be best suited for other tasks in your business, such as managing the development team or the business development and customer relationships. Your goal is to grow and manage a successful business, and usually, finance is not a priority in this. You will start to know when you want to be doing more of the “cool” work and less of the tedious bookkeeping and reporting tasks.

Can I afford a finance team or CFO?

In the first year of business, money is always tight. It’s important to be mindful of where money is being spent, but at the same time be okay with investing in something that will provide a ton of long-term success and growth. In our experience, it’s common for businesses earning 100k per year or more to start outsourcing to a finance team to manage this for them. However, if you are still in that pre-revenue or early-stage revenue range, then we may have an alternative for you…

Finance 101 for Business Owners

Would you like to have more time doing what you love? Are you interested in seeing your business thrive and scale? It’s common for business owners to wear multiple hats at the beginning, but usually, one thing gets missed… finance!

We’ve started from the beginning too, and we’ve helped tons of businesses that are in the same position. We want to help you too! Here’s your chance to get ahead of your business so that you can spend more time driving growth while creating the life and business that you want and simply doing more of what you love.

Picture this…

● Cutting your bookkeeping and admin time in half!● Pulling LIVE reports from your accounting system that is ready to go on a daily, weekly, or monthly basis● Being able to show growth potential over the next 1-2 years with a positive CASH balance● Having actual cash in your business bank account!● Spending less time worrying about your financials, and more time finding ways to grow and scale your business

We would love to be able to do all this for you! However, if you are not ready for someone else to manage it, now is your chance to take full control and implement it on your own!

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