When Might Your Business Require a Professional Accountancy Firm?
“If it doesn’t make dollars, it doesn’t make sense”. This decidedly American phrase can just as easily be translated to businesses throughout the world. After all, the main intention of any company is to turn a profit in order to enjoy long-term success. Many startups will be able to enjoy healthy margins over time if the correct strategies are in place. However, what if your venture has grown to the point where it is difficult to keep track of important metrics such as invoices and outbound payments? Might it be time to think about hiring a third-party accounting firm? Let’s take a look at some of the signs that such a move could be in order.
Keeping the Books Balanced
The majority of small business owners have little time to devote to bookkeeping requirements. The are instead focused upon other operations such as sales, marketing, product development, and client engagement. However, this can evolve into a real problem when the tax man comes knocking. In-house accounting flaws may indeed serve to crippler your operations if profound mistakes are made. Unfortunately, the majority of these errors will remain undetected until serious issues have already developed. This is why appreciating the warning signs of potential trouble on the horizon is critical.
Signs of Trouble
There are several indications that a bit of outside help may be required. Here are five sure-fire signs that professional aid is warranted:
- It is taking you much longer to balance your books than in the past.
- You are obliged to follow more stringent regulations due to recent growth.
- You are hoping to expand your ongoing operations in the near future.
- Small mistakes and/or discrepancies have already been found.
- You need to attract additional investors in order to spur future growth.
One of the main benefits associated with outsourcing your accounting requirements is that you will be provided with a greater sense of fiscal transparency. However, there are also other options at your disposal.
Online Solutions to Consider
Many small businesses simply cannot afford to hire a professional accounting firm. This is when the presence of powerful e-commerce software bundles such as Shopify Plus can be of assistance. While not primarily intended to be utilised as accounting software, the fact of the matter is that these clever digital packages can take much of the financial guesswork out of the equation. You can therefore track important metrics such as sales pipelines, operational expenses and changes to an existing marketing campaign. If a problem begins to develop, you will also be much more likely to spot it before any real damage is done.
Accounting for small businesses is a subject which needs to be taken very seriously. If you are able to develop a solid fiscal “game plan” at an early stage, the chances are high that you will enjoy a sound financial footing well into the future. Above all, never be afraid to seek out professional help when the need arises.