The finance hire is usually one of the first that many entrepreneurs will make. In order to grow the business, accurate, timely and well-managed accounts are a great contributor. In the beginning, though, most entrepreneurs are likely to try to take this responsibility on their own shoulders to save money.
At some point, everyone realises, investing time in accounting and bookkeeping that could have been used to generate more business isn’t the best way to manage your time! Especially if ones’ skills are in sales, marketing or product innovation! There is so much in the business that needs your time and attention! This is when you are most likely to hire your first employee, to manage your accounts. Do they have enough work to do? Are their days full of financial management activities? It’s highly probable that your business may not be utilising their time and skills to the fullest. Would it not be to your benefit if you were able to have just what’s required without hiring a full-time member of staff? #benefitsofoutsourcing
When your business is growing fast, it’s likely that your finance department is functioning at full capacity and yet there will be more work for them. At this crossroad will you choose to hire one more resource, unsure of productivity and expense or simply get your work done and pay only for the time a skilled accountant spends on your project? There are more questions than answers. However, there are many benefits to outsourcing that you might not earn if you hire your entire finance department. Each person comes with a skill, and you will pay them in full for it. Bookkeeping, combined with management accounting as well as budgeting and forecasting, if you were to hire for, then in all probability you will hire 3 different people, and pay for them full-time. If you outsource then you only pay for the time the specialist invested in your work. How they manage the rest of their time is their problem, not yours! This also helps you take a birds’ eye view of your business and spend time with financial reports to understand growth patterns and areas to save in.