Should I outsource my accounting?
By Jon Orr, Managing Director, Optimas Financial & Accounting Solutions
We recently worked with the new owner of a small publishing business that was experiencing cash flow problems. Since the new owner took over, profitability and cash flow had been declining. He had one person who performed bookkeeping, billing and other accounting tasks, with no CFO or Controller. And although his books were in order, for this critical, strategic question of how best to improve performance, the owner struggled to find accurate answers. He lacked the resources to quickly understand the issues and what actions to take.
That’s not acceptable in today’s competitive business world. Success requires that you understand the important details of how your business operates, so that you can make your management decisions with knowledge and confidence rather than guesses and uncertainty.
Outsourcing gives you access to the information you need, when you need it. These firms use economies of scale to give you access to high-quality work processes and experienced personnel. You can be confident that you’re getting the right resources to address your management challenges on a regular basis and whenever unforeseen challenges present themselves
Outsourcing can be cost effective. Outsourcing allows you to choose a firm that has invested in the specialized training and systems your accounting requires – so that you don’t have to. And by choosing a firm that delivers their resources across a variety of small- to mid-sized companies, your organization can leverage this value at a budget-friendly price.
Outsourcing solves the headaches that come from managing accounting and finance tasks. Unless you’re an experienced accountant or CFO, you probably have no idea how to hire and train a CFO, accountant and bookkeeper. You’re also not likely to know how to select, implement, and maintain an accounting and bookkeeping system that is secure, stable and sufficient to your needs.
With outsourcing, you don’t have to bother with interviewing, training, managing and motivating employees. You don’t have to wonder if you’re actually seeing all of the financial information you need. And you don’t have to waste your time focusing on these issues when you would rather concentrate on growing your business.
In the end, the publishing business that was struggling to return to profitability decided to outsource their accounting functions to Optimas. We analyzed the possible cost cuts and revenue opportunities, and we assessed how each option would likely impact his profitability. We then made strategic recommendations that would allow him to streamline his operations and boost sales on his more profitable products. We’re pleased to say that rather than leaving him stuck in analysis paralysis, we gave him the information and advice he needed to make actionable decisions. As a result, he expects his business to be profitable by the end of the year.
Think about the difference this sort of experienced insight could mean for your business!
© Optimas Financial & Accounting Solutions
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