Owners and Executives: Overhead of your in-house accounting department crushing your bottom line?
As an operation, accounting and bookkeeping is probably not your core value proposition.
However, a well-run accounting department is a crucial part of your successful business.
You need spot-on, accurate accounting systems and processes in place to put your business strategies in action.
But, the overhead cost of an in-house accounting team can add weight to your bottom line where it doesn’t need to be.
What if you could hire an outsourced accounting department for a third of the cost?
This is where outsourced accounting and bookkeeping can help you a ton with your company’s growth. I’m your local, expert outsourced accounting department who does it all for a third of the cost.
With more than 15 years of experience, I deliver spot-on, accurate reports weekly, monthly, quarterly, or whenever you’d like so you know exactly where your business stands.
As your Outsourced Accounting Department, here are the 5 signs your in-house accounting department is holding you back.
5 Signs Your In-House Accounting Department Is Holding Your Business Back
In some cases, it makes sense to have an in-house accounting department, but for most companies they don’t need to take on that burden of risk.
Here are 5 ways your in-house accounting department is holding your business back:
#1. You’re Still Personally Involved with Accounting or Bookkeeping Responsibilities
Imagine the possibilities that could unfold if you were able to reclaim the countless hours spent on mundane bookkeeping tasks and redirect them towards propelling your core business forward. Picture yourself with a surplus of time and an abundance of mental energy to pour into critical activities like making strategic leadership decisions and igniting the motivation of your workforce. As a visionary business owner, it’s essential to recognize that personally signing every check or delving deeper into accounting responsibilities would only serve as shackles, inhibiting the growth and potential of your enterprise.
#2. You Lack Internal Controls and Separation of Responsibilities
If your entire accounting department consists of just you and a bookkeeper as your sole assistants, then consider this scenario: it becomes apparent that your system lacks the robust internal controls and separation of responsibilities necessary for optimal financial management. Without supervisory accounting oversight of your books, you open the door for a slew of potential issues, ranging from innocent mistakes to efficiency lapses and even the insidious threat of fraud infiltrating your system.
It’s crucial to bear in mind that small businesses with fewer than 100 employees are particularly vulnerable to fraud, experiencing a staggering rate twice that of larger enterprises. Even if you have complete trust in your employees, lapses of judgment are not uncommon, and the consequences can be detrimental. Safeguarding the integrity of your financial records requires implementing a system where all accounting entries undergo routine review by at least two independent accountants. This introduces much-needed checks and balances, ensuring greater accuracy, transparency, and protection against potential financial pitfalls.
#3. Reporting Shortcomings
In the realm of small business, when a lone individual manages the accounting department, the luxury of detailed weekly or monthly reporting often eludes them. Essential financial statements such as profit and loss statements, balance sheets, statements of cash flow, and accounts payable and receivable remain elusive. Furthermore, reports that offer invaluable insights like profit and loss statements by class, department, team, and job, along with utilization and realization rates, become nothing more than distant dreams. These reports serve as precise snapshots of your business’s state, costs, and cash flow, empowering you to make informed, data-driven decisions.
If the absence of these reports resonates with your reality, consider it a glaring sign that your bookkeeping and accounting practices need to ascend to the next level.
#4. You Still Use Paper Invoices
Outdated practices like paper invoices, manual data entry, and handwritten checks are still prevalent among many small businesses today. However, relying on these manual systems exposes them to the risk of human error and hampers their ability to pay invoices early, leading to missed discounts and cash flow issues. In contrast, adopting a streamlined digital bookkeeping process enables faster accounts payable and receivable, saving money on expense tracking and facilitating better business management.
#5. Tax Season is Stressful
An ill-organized accounting system turns tax payment into a nightmare for small businesses. Scrambling for paper receipts and outdated figures hinders decision-making and competitiveness.
The real issue lies in the fact that with an inefficient accounting system, you lack access to up-to-date numbers for your business. This means making crucial decisions based on outdated figures, rendering your business less competitive in the market. It’s a scenario that no business owner wants to face—a loss of competitive edge due to the limitations of an ill-organized accounting system.
An outsourced accounting and bookkeeping can help you a ton with your company’s growth. I’m your local, expert outsourced accounting department who does it all for a third of the cost.
With more than 15 years of experience, I deliver spot-on, accurate reports weekly, monthly, quarterly, or whenever you’d like so you know exactly where your business stands.
How Do I Hire Virtual, Outsourced Bookkeeping & Local Accounting Services & Replace Your In-House Accounting Department?
Hire me, your Local, Master Outsourced Bookkeeper & Expert Virtual Accountant, today.
I bring your books current the very first time. Bringing back months and years!
I deliver accurate, spot-on reports weekly, monthly, quarterly, or whenever you like without fail.
And, I help you forecast your financial future so you can know exactly where your business stands financially.
Don’t let behind books and inaccurate accounting get in the way of growing your business.
