5 Reasons to Reconsider Your Accounting Strategy
When your business grows, your needs change. Your financial processes are some of the most important functions of your organization. You may think it's safer to maintain the status quo, but when it comes to accounting, your company can benefit from considering new opportunities. See why you may want to take advantage of a different strategy to enhance your business.
1. Your Business Has Outgrown Your Accounting Expertise
As your company grows, you encounter financial scenarios that you may not have foreseen. Interstate commerce, local and state tax application, foreign exchange rates, and international regulations all require the expertise of a qualified accounting professional to keep records updated and in accordance with applicable regulations and generally accepted accounting principles (GAAP).
Using outsourced accounting services is one strategy your business can use to address your growing financial needs with the expertise you require without the stress of building a brand new team from scratch. There is no need for a full hiring process, providing office space or finding even more storage space; outsourcing allows you to take control of complex accounting situations and save time and money in the process.
2. Your Employees Have Too Much on Their Plate
If your employees have been multitasking in order to stay on top of bookkeeping jobs, outsourcing can eliminate their distractions and let them get back to their own duties. In addition, the combination of outsourcing and using an online accounting service provides access to all the documents your employees still need to perform their functions while also ensuring that GAAPs are satisfied. Everyone stays focused on what they do best.
3. You Need an Accounting Staff Rather Than an Accountant
When your accounting needs expand past what one person can handle, you may want to consider supplementing your accounting strategy by using an online bookkeeping service. The median salary for CPAs is $67,190, but with an online service, you get access to a team of experienced accountants for a fraction of the cost of hiring an entire staff. Online accounting services also give your company access to specialized accounting knowledge that you might otherwise find difficult to obtain.
Keep in mind that if you have been using a dedicated CPA to manage all of your tax and bookkeeping functions, you may be incurring higher than necessary costs for certain tasks. For example, the hourly rate of a seasoned bookkeeper, even one utilized through a professional bookkeeping service, will likely be significantly less than your CPA's hourly rate. Employ the right professional for each task you have to not only improve functional efficiencies but also improve cost efficiencies.
4. Your Accounting Software Is Outdated
Keeping your accounting software up to date can be daunting. Technology is changing at an exponential rate, and if your software isn't able to keep up on-site and with mobile applications, you won't have the capabilities you need. Going with an online accounting solution gives you the latest changes as they roll out.
Current accounting technology includes solutions for general ledger, expense reporting, time tracking, inventory, and bill payment. The sheer volume of applications offers even niche industry needs a comprehensive service offering. The best way to review options is to ask for demos from the various applications that may fit the bill and then review the integration and synchronization options available for your current systems. You may find that one or more solutions integrate better than another while providing the same level of data management.
5. You Need Room to Grow
Whether your company is already outgrowing your staff or the market is ripe for growth, you may find that you need scalability in your accounting software. Both outsourcing and taking advantage of online accounting services can provide your business with additional features and expertise scaled to meet your needs now and expand as your organization does.
Growth is a natural process in the life of your business. Rethinking your accounting strategy helps you use your resources wisely even when you need to add to the features and functions you can use. Whether your accounting needs include tackling daily tasks, incorporating mobility solutions or garnering expertise in expanding service markets, online and outsourcing solutions can provide what you need to support your business.