by: Sidney Liquigan
Monday, November 13, 2017 |
One of the most common mistakes that startups and small businesses make is not asking for help. Business owners, regardless of scale, will inevitably face challenges along the way. If you think you can make it on your own, it's possible, but the progress will be painfully slow.
According to the Small Business Facts report of SBA, about two-thirds of businesses with employees survive at least two years, while about half survive at least five years. Startups fail during the volatile first few years because of low productivity and poor cash flow management – both of which can be solved by outsourcing.
Accounting and bookkeeping are business functions that should be ideally outsourced, especially if you have a small staff and few resources. Hiring an outsourced financial specialist gives you access to a highly skilled expert that has a deep understanding of your industry.
Delegating tasks to a third party provider also offers a refreshing insight from an outsider on how your business can be further improved. Outsourced accountants and bookkeepers will do more than financial reporting; they will also help you identify issues and find ways to improve in those areas and maintain stability in the areas that are doing well.
How do you know if your business needs to outsource accounting? If these red flags apply to your business, then it's time to consider outsourcing.
No existing financial management
Poor financial management, or the lack thereof, will be the number one cause of your company's downfall. Your cash flow plays a big role in making important business decisions. If you have no idea about how your business is doing financially, it’s time to outsource finance and accounting to the experts and get it under control in no time.
You keep track of your finances but cannot interpret the data
Keeping track of your earnings and expenses is a good practice, but not enough to drive your business towards your goals. If you don't know what to do with the data you have and how it can help with creating business strategies, then a financial analyst will help you identify your assets and liabilities and what to do with them.
You need an accountant but don't have the budget
One of the advantages of outsourcing is the processes and project arrangement is tailored to your requirements. You can acquire the services you need only when necessary. The options are also scalable to your budget. You can outsource a specific task to a single person, or hire a team to work within that budget. As your financial situation improves and becomes more stable, you can then increase the capacity of your outsourced team.
Time spent on managing finances makes your productivity suffer
Handling your finances on your own or delegating the tasks to other members of your team who also have other roles is counterproductive. Finance and accounting are time-consuming and require a dedicated specialist to do the job. Outsourcing finance work frees up you and your employees' time to focus on your core business processes and will boost your business efficiency.
In the Philippines, MicroSourcing is a leading outsourcing provider with finance and accounting professionals who are trained in international accounting standards. Outsource your financial processes to us, including payroll, bookkeeping, financial reporting, tax compliance, and more. Contact us to learn how we can help.