When you're dreaming about your exciting new business venture, the chances are that financial functions such as forecasting, reporting and submitting tax returns aren't at the forefront of your fantasies.
However, as your business grows, these essential but time-consuming tasks will need to be addressed.
One solution is to outsource your financial functions to a professional accounting firm. This can free up your time to focus on the aspects of your business that you're passionate about, while still ensuring that your finances are in good hands.
There are a number of reasons why businesses outsource their financial functions. Let's take a look at some of the most common ones.
1. To save time
One of the most obvious reasons to outsource your financial functions is to save time. As your business grows, you'll find that there are only so many hours in the day.
Outsourcing financial functions such as bookkeeping, invoicing and payroll can free up your time to focus on other aspects of your business. It can also give you more time to spend with your family and friends, or to simply take a well-earned break.
2. To get it right
Unless you have experience in finance, it's likely that you're not an expert in bookkeeping or tax returns. This means that there's a risk of making mistakes that could end up costing your business money.
When you outsource your financial functions to a professional accounting firm, you can rest assured that everything will be done correctly. This will give you peace of mind and allow you to focus on other aspects of your business.
3. To save money
You might think that outsourcing your financial functions will be expensive, but in fact, it can save you money in the long run. This is because accounting firms have the experience and expertise to get the job done efficiently and effectively.
In addition, outsourcing can help you to avoid costly mistakes that could end up costing your business money.
The expertise of a professional accountant can also help you to identify areas in which you can cut costs, allocate resources more efficiently or take advantage of tax-saving opportunities.
4. To get expert advice
When you outsource your financial functions, you'll have access to the expertise of a professional accountant. This can be extremely valuable, especially if you're not an expert in finance yourself.
Your accountant will be able to offer advice on a wide range of financial matters, from bookkeeping and tax returns, to forecasting and cashflow management. This advice can be extremely valuable in helping you to make the right decisions for your business.
5. To focus on what you're good at
One of the biggest benefits of outsourcing your financial functions is that it allows you to focus on what you're good at. When you outsource, you can delegate the tasks that you're not so good at or that you don't enjoy to someone else. This will free up your time to focus on the aspects of your business that really drive growth.
Remember that as a business owner, your time is a limited and extremely valuable resource, so it makes sense to focus it on the tasks that will have the biggest impact while leaving financial functions in the hands of a professional.
6. To improve cashflow
Cashflow issues are one of the biggest - and most dangerous - problems that businesses face. If you don't have enough cashflow, it can be difficult to meet your financial obligations, pay your employees or invest in growth. On top of this, you'll find yourself constantly worrying about your ability to make ends meet, which can take a toll on your mental and physical health.
Outsourcing your financial functions can help you to avoid cashflow issues by giving you access to the expertise of a professional accountant. An accountant can help you to forecast your cashflow, identify potential problems and put measures in place to avoid them.
7. To prepare for growth
If you're planning to grow your business, it's important to make sure that your financial systems and processes are up to the task. If they're not, you could find yourself in a difficult situation further down the line.
Outsourcing your financial functions can help you to prepare for growth by giving you access to expert advice. An accountant can help you to put systems and processes in place that will be able to cope with growth, and they can also offer advice on how to finance your growth plans.
Final thoughts
Outsourcing your financial functions can be extremely beneficial for your business. It can save you money, help you to focus on what you're good at and improve your cashflow. In addition, outsourcing can give you access to the expertise of a professional accountant, who can offer advice on a wide range of financial matters. If you're planning to grow your business, it's important to make sure that your financial systems and processes are up to the task, then outsourcing can help with this.
Whatever stage your business is at, outsourcing your financial functions is definitely worth considering. It might just be the best financial decision you ever make.
