Running a business efficiently needs a lot of focus & dedication. As a business owner, you have to spend much time acquiring new clients, focusing on the quality of your products or services, and your business growth.
Among all this chaos, Accounting and Bookkeeping is mostly ignored! But this can be a grave error of judgment if you ask me. If your approach is to delay your accounting tasks or hand it over to non-accounting professionals, there will be issues. Remember, it’s your firm’s financial performance that will make or break your business.
Being an Accounting and Bookkeeping agency, you might think I am bound to tell everyone to outsource these services to us! But that’s not the right thing to do. I firmly believe that not every business needs to outsource its Accounting and Bookkeeping.
You should outsource these services only if you see sure signs with your Business. In this blog, I will discuss six signs that say it’s time to Outsource your Accounting & Bookkeeping.
Let’s have a look.
Not Enough Time
If you are tied up too much in your accounting tasks and in tracking financial transactions, it’s a matter of grave concern. Accounting and Bookkeeping is a time-consuming and draining task. If you are focusing on it too much, it might adversely affect your Business.
Sorry for being blunt; accounting is not for everyone. Many people find it boring, so there is no meaning in spending too much time on it. The better option is to hire an agency to do it for you while focusing on your core business.
Messed up Books
Having up to date financial track-record handy is vital for any business. If you are unable to get your P/L statements on demand, if your entries are not precise, and you are accounting is outdated, it’s time to call in experts!
The primary reason for this mess is either you are doing this entire task by yourself, or you are relying too much upon a part-time employee.
Hiring an in-house accounting team demands a lot of capital investment. You will need a setup, a lot of hardware, expensive software, and a workforce. Such investment is viable only if you have a staff of more than 200 or 300. Otherwise, it’s a dead investment.
So if you are looking for a cost-cutting measure, especially in this pandemic period, it’s a sign you should outsource your Accounting & Bookkeeping.
A booming business is always good news, but it does come with some issues. If your business is performing well and planning to expand your business in India, your existing accounting department will find it challenging to handle the extra task.
So if your business is expanding, it’s time to outsource your accounting and bookkeeping tasks. This gives you flexibility and quality work without worrying about putting too much pressure on the existing team.
If you are paying more tax than you should
This is a glaring sign that you need to hire an accounting agency. You may be paying more than you should be paying. I am not saying your employees are not competent enough or not doing their job correctly, but there is no doubt that agencies like Probal Consulting Group can help you save more by optimizing your tax.
Tax experts in agencies have just one job, and it’s to ensure how to optimize a client’s tax.
Delay in Invoicing
Sending an invoice to a client for any job performed or any goods supplied is the most satisfying feeling! But this can be done only when your team prepares timely invoices.
Of course, your in-house team has a lot on its plate, and this might delay your invoicing.
Whatever the reason, your invoicing and ultimately your payment is delayed; that’s the fact. So if you too are facing the same issue, it’s a sign that you need to outsource your Accounting & Bookkeeping.
As I said, earlier Outsourcing is not viable for every Business. But if you see the above signs, it’s time to outsource your Accounting and Bookkeeping.
Maintaining your account books is vital for your Business’s financial health. Quality accounting can help you with saving many resources. You can divert these resources for the future growth and expansion of your Business.
Probal Consulting Group is a leading Taxation, Accounting and Compliance firm that helps individuals, MSMEs and other businesses manage their accounting, taxation regulatory compliance affordably.