When to Outsource Accounting for Your Small Business

Managing your small business is no easy feat. From marketing efforts to client meetings, balancing it all can become overwhelming. A common pain point for many small business owners is accounting. But have you ever wondered if it’s time to bring in a professional? Let’s dive deep into the nuts and bolts of when to outsource accounting for your small business.

Signs You Need to Outsource Accounting

1. Overwhelming Workload

If you’re constantly bogged down by endless financial reports, it may be time to outsource your accounting. You did not start your business to get buried in paperwork, right?

You’re frequently correcting past financial errors.
You spend more time on accounting than on your core business activities.
Your work-life balance is suffering.

2. Lack of Expertise

Accounting is a specialized skill. If you lack the training or knowledge, you could be risking financial safety.

You’re uncertain about tax laws and financial regulations.
You often Google basic accounting queries.
Your financial reports are not as detailed as they should be.

3. Missed Deadlines and Financial Penalties

Nobody wants to pay fines for missed deadlines. If this sounds familiar, outsourcing can save you lots of trouble.

You’ve missed tax filing deadlines in the past.
You’ve paid financial penalties for incorrect filings.
You’re struggling to keep up with invoicing and payments.

Benefits of Outsourcing Accounting

1. Time Savings

Imagine spending your afternoon strategizing for growth, rather than balancing books. By outsourcing, you free up your schedule.

2. Expertise and Accuracy

When you hire a professional, you’re paying for their expertise. No more second-guessing financial decisions or worrying about compliance issues. These pros handle it all.

3. Focus on Core Business Areas

Once accounting is out of your hands, you can fully focus on what you do best. Whether it’s product development or customer relations, your attention can go where it’s needed most.

When to Make the Move

Still unsure if now is the right time?

During Tax Season

For many small businesses, the tax season is incredibly stressful. Outsourcing during this time can make a world of difference.

When Scaling Up

If your business is growing, your finances become more complex. Let professionals manage it as you focus on scaling up.

When Introducing New Financial Systems

Thinking about implementing new accounting software? Outsourcing can provide the expertise you need for a smooth transition.

How to Choose the Right Accounting Service

1. Check Their Reputation

Look for recommendations and reviews. Websites like Exact Balances can provide valuable insights.

2. Understand Their Services

Make sure they offer all the services you need, from tax planning to payroll management.

3. Discuss Fees

Transparency in fees is crucial. Ensure you understand their pricing structure before signing a contract.

Final Thoughts

Outsourcing accounting can be a pivotal move for your small business. It can save you time, bring in expertise, and help you focus on your core activities. Consider the signs and benefits mentioned above to determine if it’s the right time for you.

If you need help with your bookkeeping, we are here to help. Book a Free discovery call with our team at Exact Balances Bookeeping.