If you are running a small business then it is difficult to know which areas to outsource and which to take care of in-house. This is always a ought call for a small business owner as of course, outsourcing costs money and there needs to be a solid ROI on any tasks which are given out. Scott Tominaga is someone who knows this only too well, he has worked within business finance all of his career and has seen the damage which a failure to outsource can do to a business. Scott has been speaking recently about this very subject and in particular, the importance of outsourcing accounting.
The Risk Factor
Most business owners may understand finance but understanding accounting is something different and many think that they can take care of it themselves. The fact of the matter is that over 50% of businesses will close their doors before they are able to reach the 4 year mark and most of those closures happen a s a result of poor financial management. Outsourcing your account will ensure that you don’t fall where others have before, or at least if you do, it will have nothing to do with your accounts.
Your accounts are most important when it comes to filing tax returns and in order to make sure that you are in great shape and that this becomes a very simple process, you should have a professional accountant looking after your financial dealings. Those who are scrambling around at the 11th hour looking to find documentation for their tax returns are those with a poor system and ultimately those who can’t do their accounts well.
Focus on The Business
Many small business owners massively underestimate the time which accounting takes and this is something which can very often pull them away from running the business. This attitude towards micro-management will always result in a loss of focus for business owners. It is your position to ensure the smooth day-of-day running of the business, to make sure staff are doing their job and to ensure that customers are happy. Getting bogged down in the accounts will be a surefire way to be blinded as to what is happening in the rest of they business.
What many also fail to realize about using accountants is that they are able to offer you neutral advice. Many business owners make decisions about their own place with emotion involved and when it comes to a basic financial decision, this can often cause quite the problem. An accountant looks at nothing more than facts and figures, that’s all. An accountant will be able to give you a clear snapshot of where the business is financially speaking and that is what should be able to influence your decisions in the future, allowing the head to rule the heart.
This is a no-brainer when it comes to outsourcing areas of your business and if you don’t already have one, an accountant should be at the top of your priority list.