The benefits of outsourcing your accounting.
In the beginning of your journey as a business owner you fulfilled every single function in your business. But let us be honest for a moment, one of the top three reasons you chose this path was to generate wealth and have the freedom to manage your own time.
In the early stages of your venture you would have and probable still are responsible for pretty much everything in your business from managing your staff, ensuring that all your suppliers are paid on time, keeping your customers and clients happy, improving the efficiency of your venture and developing products and client relations. Probably the most important of all is spending time with your family and the people that you care about. You are going to reach a point where it is no longer economically feasible for you to fulfill al the roles and you would need to consider using experts to guide you along the way.
Outsourcing your accounting function will free up a great amount of time and will reduce the nuisance factor of keeping the books up to date greatly. As a business owner you will appreciate the fact that cash flow and the availability of financial resources are the lifeline of your venture, that means that you will always endeavor to hire the best possible talent at the best possible price. By outsourcing your accounting function, you not only gain access to some of the absolute best talent in the market, but you do so at a substantially reduced rate. Not only will you have access to professionally trained Chartered Accountants you will have less staff to manage, no additional overheads in terms of real estate space, payroll and paid time off.
A business needs to innovate; and to innovate the business owner must find time or manpower to manage everything effectively. Fortunately, there are lot of companies in the industry that can offer you accounting support, thereby giving you the time to scale your operations. Let us put that into perspective, if you as a business owner currently spend roughly 13 hours a month on accounting – this could be made up as follow:
Updating cashbook 4.00
Bank reconciliation 2.00
By outsourcing you could save up to 12 hours a month of your time – assuming that you will engage with your accountant for one hour a month to discuss the performance of the past month. As an entrepreneur what could you do with an additional 12 hours a month. Can you imagine the perpetual upside to your business if that time can be utilized in generating more business? That additional business will go along way to generate that financial freedom which motivated you along this journey.
If you are not a trained accountant yourself why would you take on the task of ensuring your books are up to date? When you started your business, you did approach a graphic designer to assist with the design of your logo’s and so on. Why not do the same with your accounting?