Accounting has a poor reputation for being a dull subject in the corporate world. As a small company owner, you’d probably prefer talk about your products and services than your accounting debits and credits (unless accounting is your profession, as it is for us!).
You’ve kept a careful watch on expenses as a small business owner, knowing it’s your responsibility to keep costs as low as possible. You may have even done your own bookkeeping in QuickBooks or watched over your bookkeeper’s shoulder to keep an eye on the funds.
Why? Because wise business owners understand that accurate and timely accounting is more than simply a necessary evil; it is critical to the survival of their company.
However, when the company expands, most entrepreneurs discover that their time is better spent doing other things. The limited number of hours in the day are best served by focusing on the main business rather than on day-to-day bookkeeping.
A bookkeeper cannot provide what a business owner requires in the early stages of growth: managerial accounting. When your small business or non-profit exhibits these characteristics, you’re probably ready to extend beyond a bookkeeper as your accounting department. You, as the CEO or executive director, must make a choice on how to continue with the accounting function during these important stress periods. There are various alternatives available, each with its unique cost-value relationship.
By utilising other people’s resources (OPR) through outsourcing, a company saves time and money on hiring, training, and maintaining extra accounting employees. By the time a firm considers outsourcing its accounting, its personnel ranks have already begun to grow.
As a manager, you already have a lot on your plate in terms of human resources. CEOs with a strategic focus opt not to add to that burden by managing an accounting department as well. As the CEO or executive director, your duty should be to focus on the people who generate revenue rather than the distraction of accounting.
Furthermore, when a business outsources bookkeeping and accounting to a Client Accounting Services firm, it is often provided a professional accounting team. The dedicated team can serve as a small business’s whole accounting department, or they can supplement the current accounting staff to improve efficiency and separation of jobs for a fraction of the expense of a full-time accounting department.
