5 Signs You’ve Outgrown Your In-House Accounting
When you launched your business, doing the books in-house (or even on your own) made perfect sense. It was cost-effective, you had a clear view of your financials, and your accounting needs were relatively simple.
But as your company has grown, so have your financial responsibilities — and the cracks in your in-house accounting process might be starting to show.
Outsourcing your accounting function is more than just a way to offload tedious tasks. It’s a strategic move that can elevate your financial decision-making, improve accuracy and give you access to the type of high-level expertise that growing businesses need to thrive.
Here are five telltale signs it’s time to make the shift.
1. Your Bookkeeping Is Always Behind
If your books are constantly out of date, you’re not alone. For many small and midsize business owners, accounting tasks fall to the bottom of the to-do list … until tax time or a financial emergency forces you to play catch-up.
Behind-the-scenes functions like bank reconciliation, bill pay and account analysis sure aren’t glamorous, but they sure are vital. And if they’re not happening regularly and accurately, you’re flying blind.
An outsourced accounting provider can ensure your financial data is timely, clean and organized. That means faster decision-making, fewer surprises and more confidence in your numbers.
2. You’re Spending Too Much Time on Non-Core Activities
Your time is valuable. However, every hour you spend managing invoices, reconciling bank statements or troubleshooting payroll issues is an hour you’re not spending on growth, strategy or customer relationships.
And if accounting isn’t one of your core competencies, you’re probably spending many more hours on those tasks than need to be spent!
In-house accounting might have worked when your operations were simpler. But as your business matures, your time and your team’s focus should shift to higher-value activities. If accounting tasks are consuming more bandwidth than they should, it’s a sign that your internal systems have hit their limit.
Outsourcing day-to-day functions like bill pay, payroll and financial reporting allows you to redirect your focus to the work you do best: running and growing your business.
3. You’re Spending Too Much Money on Internal Accounting
Hiring, training and retaining qualified accounting staff isn’t easy — or cheap. And if you’re a small business, you might not have the resources or workload to justify a full-time CFO, controller or even a bookkeeper.
Outsourcing eliminates those fixed personnel costs and replaces them with flexible services tailored to your actual needs. You’ll gain access to a team of financial professionals without sacrificing expertise or control. And because you’re just paying for the hours you need, you’ll often get that access for less than the cost of a single full-time employee.
4. Your Financial Reporting Isn’t Helping You Make Better Decisions
Your financial reports shouldn’t just be numbers on a page. They should be tools for strategic decision-making.
If you’re not getting regular, accurate and easy-to-understand reports — or if you’re not even sure what reports you should be looking at — your business could be missing out on key opportunities or heading into costly pitfalls.
Outsourced accounting providers can offer robust reporting, complete with customized dashboards, clear insights and help interpreting the data. Whether you’re trying to stick to a budget, grow your business or get investment-ready, better reporting leads to better outcomes.
5. You’re Expanding … But Your Systems and Staff Aren’t Keeping Up
Business expansion is exciting, but it does come with growing pains. New locations, larger teams, new services or products, and expanded vendor relationships can quickly overwhelm an in-house accounting system if it was built for a much smaller operation.
From managing banking relationships to setting up or upgrading your accounting software (like QuickBooks), outsourced professionals can scale with you. They bring the know-how to implement efficient systems and processes. And they can offer budgeting and forecasting support to help you plan smartly for the road ahead.
If growth feels chaotic instead of strategic, your accounting infrastructure could be the bottleneck. And outsourced accounting services can unclog the system.
Ready to Scale Smarter?
Growing pains are a sign of success, but they don’t have to come at the expense of your financial health. If you’ve outgrown your in-house accounting, it might be time to consider a more scalable solution. Outsourced CFO, accounting and bill pay services are that solution.
McManamon & Co. is an accounting, tax, fraud, forensic and consulting firm that serves small and midsize businesses. Our accounting team can take a comprehensive look at your books, as well as guide you in implementing outsourced solutions that align with your goals and budget.
Learn more about how McManamon can help your small business. Call us at 440.892.8900 or contact us online today.
Tags: accounting, McManamon, outsourced CFO, outsourcing your accounting, small business, small business accountant, small business accounting | Posted in McManamon & Co., outsourced CFO, small business