Current accounting system not working? 6 reasons to outsource

You started your business because you had a dream. You saw a need or problem common to many individuals or businesses, and you had an idea for a product to meet or solve that need. You looked forward to creating it, perfecting it, identifying your market, making critical connections by networking, and managing your promising venture’s health—and growth. But now you find yourself spending hours every week sorting out your business accounting and trying to figure out whether you’re making or losing money and why.

You struggle to pay your taxes, suppliers, and other expenses. Maybe you’re having to chase down customer payments to fulfill those obligations. You’ve borrowed money or taken on investors to get the business going, and those people want regular updates. But in all the chaos, you just can’t seem to build these reports.

Whether you’re using complex accounting software or still trying to get by with paper and the occasional spreadsheet, you’ve discovered that you just don’t know enough about how to keep your books on track. You know it’s supposed to be an organized, accurate set of procedures. However, your data and workflow are anything but.

Outsourcing business accounting — an option to consider

One strong reason to consider outsourcing your business accounting and hiring a professional to take it off your hands is that small business accounting is complex. It takes a lot of time to understand the requirements, structure, and standard workflow for accounting – time you may not feel like you can dedicate and still balance your other responsibilities as a small business owner. DIY-ing your business accounting can take up valuable hours and create a great deal of frustration.

Some small business owners are concerned they’ll lose control if they outsource their accounting. The opposite is often true. Many find that working with a professional accountant gives them a better command of their finances. For example, at Block Advisors, our bookkeeping experts help their clients feel confident enough to make the strategic decisions to drive their company forward. You may feel like you have more control when working with a business accountant. Many business owners find they have a much better understanding of their company’s financial strengths and weaknesses when an accountant is there to walk them through their business records.

This leads to the third reason to outsource: You no longer have to concern yourself with the day-to-day mechanics of the accounting process. The accountants you hire will take over the financial fundamentals and manage your books promptly and accurately by implementing accounting rules and guidelines. You don’t have to sweat the small stuff.

Better focus, better decisions

Above, we shared three persuasive reasons to hire an accountant. But let’s talk about the results. Outsourcing your business accounting will likely give you more time to concentrate on the work you launched your business to do. How many times during the day do you have to stop what you’re doing – updating your marketing plan, meeting with customers, thinking about new products, interviewing, brainstorming, managing – to answer an accounting question, run a report, or create a file for a new customer? After every interruption, getting back on track with your earlier task takes time. This task-switching eats up more time than you might think.

You are the visionary. You are the individual with the original idea that became a business. Outsourcing lets the accounting experts do what they do best so that you can do what you do best.

Let’s take this a step further. With your accounting and bookkeeping handled by a professional team, you’ll have more time to focus. Your business decisions will be based on more sound financial information and thoughtful consideration. Shedding the time-consuming, anxiety-producing responsibilities that come with business accounting can lead to positive outcomes.

Reliable technology

Finally, even if you did manage to figure out how to use accounting software, you can’t compete with the capabilities of an accountant’s professional-grade technology. Block Advisors, for example, uses some of the best, most sophisticated accounting software available on the market. These advanced solutions often also provide you instant, easy access to your data and your accounting partners remotely. So you can stay up to date on your business bookkeeping from your office, home, or anywhere else you may be.

The only downside is that accounting outsourcing comes at a financial cost. But consider the time and mental focus you’re wasting by trying to manage your finances. It could result in lost revenue. Utilizing a professional business accountant may ultimately translate to increased profitability for your company in the long run.

Get more help with small business accounting

If you want to explore outsourcing accounting or other administrative tasks, Block Advisors can help. Block Advisors offers year-round small business services to help you manage your small business to-do list. Our business formation, bookkeeping, payroll, and beneficial owner reporting services help relieve the stress of these administrative tasks so you can focus on the parts of your business you love instead. 

This article is for informational purposes only. The content may not constitute the most up-to-date information and should not be construed as legal advice. 

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