Accounting services are a necessity for many businesses, many simply search for 'small business accountant near me' to find one. However, hiring an accountant as a company employee may not be reasonable or efficient for many small business owners. For this reason, many small business owners turn to outsourced financial services. They can cover everything from bookkeeping services to a part-time CFO (Chief Financial Officer). Outsourced accounting firms are often the best option for straightening out the company books while keeping overhead costs down.
The best small business owners have specific goals or objectives for their business in mind. Most of these goals have some form of monetary cost. Whether it’s the desire to hire more people or expand the business brand. An outsourced accountant can provide assistance with meeting these goals. They also get a clear picture of the current financial well-being of the business. Not to mention, the costs of the risks business owners may be looking to take.
Before you hire a CFO or an outsourced accountant, there are a few questions you may want to ask. Primarily about their brand and your business’s needs. There are many outsourced accounting firms available. The lowest cost option is most likely not the best. Here are a few things you should consider before hiring an outsourced accountant for your business.
Before hiring an outsourced accountant, you’ll need to take stock of the current monetary condition of your business. For many business owners, assembling a clear picture of your company finances is tricky. It requires a considerable amount of time away from their regular workflow. You’ll need to measure the risks of your current operations. Then identify all assets and current costs in terms of both time and money. This process serves as a check-up for the company. It is something you should already be doing consistently.
If it’s difficult to measure the value and cost of your business assets, outsourced financial analysis and services are most likely a must for your business. Even if it’s just to prepare you for the coming tax season. If it’s difficult to build in time to manage and analyze your company finances, it’s time to look into your outsourcing options. Hiring an outsourced accountant or bookkeeper means you’ll always have a straightforward understanding of your current financial situation. If there are any discrepancies in account balances or cash flow, you’ll know as soon as it happens.
Every business owner should have at least some idea of where they want their company to be in the next month, year, or five years. These goals shape your business operations and determine how the business takes steps towards growth or brand development. An outsourced accountant can help make these goals a reality through financial reporting, short-term goal setting, and risk analysis.
The support of outsourced financial services can make a more immediate impact than hiring internally- an outsourced accountant comes with instant expertise and should already have experience working with other small businesses. Training times will be minimal to none, and little more than an introduction to your brand is necessary for getting started. The instant expertise of an outsourced accountant often makes achieving your short-term business goals more manageable.
A CPA, or Certified Public Accountant, indicates that the accountant you’ll be hiring has a considerable amount of experience and business acumen. Achieving CPA status requires at least two years of experience and several additional semesters of university or certification classes. Becoming a CPA also requires a positive mark in all sections of the Uniform Certified Public Accountant Examination.
Hiring a CPA through an outsourced financial services company is a sure way to guarantee that an experienced and high-quality accountant is managing your books. Ask the outsourcing firm about their policies and prices when hiring a CPA- the services of a certified public accountant are always in demand.
Part of an outsourced accountant’s job when working with your business will be to report on the financial wellbeing of your company on a monthly or weekly basis. A well-developed financial report can provide business owners with many insights into company performance and operations. Make sure the accounting firm you’d like to hire has a straightforward answer to this question and prioritizes regular reporting.
Financial reporting is the foundation for forecasting and market projection and can give you a good idea of how your business fits into the larger industry picture. Bookkeeping reports can also show you how your business has achieved or failed to achieve your monthly or quarterly KPIs (Key Performance Indicators). Setting and updating specific and measurable KPIs is an important management process- click here for more information on KPI best practices.
Many outsourcing companies will seek to lock in business owners to quarterly or yearly contracts. Often without allowing business owners to first see the impact of their services. Monthly contracts are often the best fit for business owners to make sure the outsourced services work well for them. It also relieves the pressure of hiring on a continuing basis. As your business continues to grow, you may also want to increase the level of outsourced financial support services. Monthly contracts rather than quarterly or yearly ones are sure to make this scaling-up process less of a hassle.
For many small business owners, outsourced accounting is essential for measuring the financial wins and preparing the business for tax season each year. An outsourced CPA can straighten out company finances and organize the books while providing assistance with goal-setting. Outsourced financial services are also a much cheaper option when compared to hiring internally, and can ultimately provide small businesses with new routes to success.