Starting a new, independent venture can always be risky, hard, and usually, comes with a massive set of responsibilities that you’ve practically got to manage all by yourself. With the initial stage of a start-up struggling to multitask various operations at one go, it leaves the company constrained both by the burden of operations to be handled and the budget at hand. At such a crucial time of your business, the only respite that you can look out for is by shedding some of a load of your tasks from your shoulder and outsourcing certain activities.
You tend to reinstate your faith in outsourcing when the words of Lee Kaun Yew resonate in your mind:
“If you deprive yourself of outsourcing and your competitors do not, you’re putting yourself out of business.” And you certainly don’t want your company to be out of competition, right?
We understand that an initial start-up must stretch its budget far and by and we certainly do not recommend you to hire a full-time accountant when there is a crunch on revenues. However, outsourcing accounting services can be your savior plan that will not only be practical but also cost-effective for your enterprise.
So, when is the perfect time to hire an accounting and finance service? Well, the answer to this question largely depends on the stage that your start-up is currently floating in. Many companies right away hire outsourcing services for accounting and finance at an adolescent stage of their venture, while some wait it out. But, there’s always a catch to look out for that can indicate whether you require an immediate accountancy service – When your expenses have exceeded in general and you are facing a growth in your business, then it is time for you to have a solid ground on how your cash flow is growing.
It is often seen that companies have a very amateur image of how outsourcing an accounting and finance service helps them. It’s high time to get this myth busted because there’s much more to the services provided by an accountant than just staring at a computer screen tallying numbers!
There’s more to accounting service than basics. With an expert advisory and analysis on fields like business licenses, expense tracking, policies, and procedures, month-end accounting, payroll, tax preparation, budget creation, cash flow analysis, audit support and preparation, an outsourced accounting firm can prove beneficial by giving you much needed support that your business requires.
Still skeptical of choosing to outsource accounting? Let’s clear your doubt by stating the benefits of what outsourcing has in store for you –
Hands on expert analysis for your finance: Since start-ups invest a major amount of time concentrating on core activities like marketing and production, they tend to sideline support activities such as finance and accounting. Moreover, if your company has little or no experience on these support activities, then you should consult an accountancy firm that can provide a more effective result through their professional skills than your in-house team.
Saves big on your expenses: Support activities tend to get expensive as and when the business is likely to grow and expand. And in such a case, the scenario of hiring an accountant as an employee can burn a hole in your funds. On the contrary, the cost of outsourcing this service is much less where you can achieve efficient solutions at an affordable price; all this at less than a fraction of hiring a full-time employee.
You’re still your own boss: Many start-ups fear the notion of outsourcing their accounting services on the pretext of losing control over the accounts because of a shift in the response from the start-up to an outsourcing firm. But that is just a misconception because many companies fail to realize that the companies tend to manage an outsource provider more stringently than they would have with their in-house department. Thus, in a way, the control of your accounts and finance increases with outsourcing.
It has been observed, time and again, that small business rise in the value chain when they outsource non-core activities because this gives them much exposure on creating value for their business rather than devoting time to support it. Outsourcing non-core functions of your business give you and your company
much time to invest on what you do best. Don’t let your business take a setback from the success it can achieve. Outsourcing always makes for a wise solution.