Are you the owner of your business that's also in control of the finances? If you are that can be a problem looming overhead. For a technology business to grow and scale efficiently, a dedicated finance professional (CFO, Controller, Accountant, Bookkeeper) is essential to ensure profitability.
I didn’t know it when I started my business 20 years ago, but switching between day-to-day business operations, like managing staff, ensuring client satisfaction, attracting new clients, and ensuring client profitability, was killing my performance.
As the CEO, the Vice-President of Sales, Engineering, Marketing, Product, and the CFO, I had become accustomed to juggling multiple hats to keep the company on track. Although I was multi-tasking because I wanted to achieve more, wearing multiple hats was actually causing a significant drop in my productivity.
Not only was I taking on too much, but I also significantly increased my stress levels. Multitasking makes people less productive, less creative, and more likely to get thrown off task by distractions. So, why do we see so many owners and CEO's attempting to oversee business operations while simultaneously balancing the books?
I thought...I don't really have a choice, do I?
Depending on the size and structure of your IT business, a CEO's responsibilities can include hiring and managing staff, developing client relationships, monitoring the company’s growth strategy, and ensuring the business remains profitable. That's not even including managing the day-to-day operations. Who has the time to do all that and worry about their finances?
If this story sounds too familiar to you, read on. Here are five reasons why you should consider outsourcing your accounting:
For small to medium sized businesses it can be easy to fall behind on your bookkeeping. If you’re having bookkeeping issues (I feel bad for you son, lol) your company can start to face debt problems. Missed or late debt payment can take a toll on your business credit report. Not to mention, late debt means excessively high interest rates and unfavorable payment terms.
Maintaining current, accurate cash flow is crucial for your bookkeeping department. This will allow you to keep track of all receivables, payables and the company’s financial situation (cash and credit) in general.
Poor bookkeeping can cause a host of legal problems for your business. Your creditors can sue your business if you don’t pay them. Growing businesses can't afford to have late tax filing as it leads to heavy penalties. Also, you can get in trouble for improper deductions and late tax payments.
Outsourced accounting not only keep your company scaling but, can keep your company compliant!
Improper bookkeeping can cost your business significant amounts of funds. If you don’t pay your suppliers on time or pay incorrect amounts, that’s going to hurt your company’s financial credibility.
You might end up losing your suppliers, which will affect your production, output and sales. Don’t be shocked if your customers go to your competitors.
Accountants use bookkeeping data to make financial reports, including budgets, general ledgers, balance sheets, cash flow statements, profit-and-loss statements, etc. Without proper bookkeeping, you won’t be able to make informed financial decisions. Bookkeeping can help you identify your financial strengths, weaknesses, and opportunities.
A lack of visibility in your accounting processes causes inefficiency, an incomplete view of the levers of profitability, the inability to identify macro trends, time lost to tracking down information, and—possibly worst of all—the inability to adjust strategy for new market conditions.
In order to record all your financial transactions daily, you need access to workable bookkeeping processes and systems. At MSP+OS, we offer customized accounting and bookkeeping services, nationwide.
Our services include, but are not limited to, accounts payable, accounts receivable, payroll, accounts reconciliation, Corelytics integration, expenses export from ConnectWise to QuickBooks, customer and supplier information exporting from ConnectWise to QuickBooks and invoicing.
Our team develops comprehensive, thorough, reliable bookkeeping processes that meet your individual business needs. To make bookkeeping easier, painless and manageable, we assist companies with implementation and integrate the latest accounting software.
When you have precise, accurate, and timely information based on real-time data, everyone in the company can operate accordingly. This means the management team spends less time worrying about the numbers, and more time problem solving and improving results!