Many CEOs, CFOs, and other executives still make mistakes when it comes to their company’s accounting. They spend resources (time and money) on a function that is non-core to their business by building an in-house finance and accounting team instead of outsourcing.
Prominent global companies have the means and genuinely benefit from having a dedicated, in-house accounting team. However, businesses with $5 to $200 million in revenues should acknowledge the benefits of outsourced accounting.
This article will go in-depth of these benefits by explaining all the signs that point to the need for outside help for your growing company’s finances.
The primary need for hiring accountants instead of keeping a team of them in-house is to cut down on costs.
The central myth business people believe in is that outsourced accounting costs more. However, nothing can be further from the truth.
Let’s take a look at it this way. If you have an accounting team, you should expect the following:
Now, as for outsourced accountants:
As you can see, cutting down on costs is more than merely possible when hiring outside professionals.
Growing companies experiencing rapid growth are precisely the ones that need to outsource their finance & accounting and should consider Finance as a Service (FaaS).
Do you want to know why? The reasons are clear:
Many growing companies entrust the accounting (and all financial responsibilities for that matter) to the CFO. It inevitably leads to that person burning out over time.
Overworking is a severe problem in this day and age, where people try to take on too many roles or take on too many tasks.
Another problem here that is a direct result of the CFO with a heavy workload is that they are not able to spend their time on strategy which is where their expertise is really needed. It’s often easy to understate this problem as it’s not as easily noticed as one might think.
When such a thing starts to occur, it’s a clear sign that outside help is necessary. By outsourcing your accounting needs:
Precisely because of all of this, the CFO can make better decisions and improve the business as a whole, furthering the growth of the company.
Accounting typically operates separately in most companies, and these teams have a lot of freedom in what they do. It inevitably leads to wasted time and money on minor issues, while the most important things are left on the side, which are:
When this happens, and it almost always does, it’s a clear sign that your company needs to outsource their accounting as the hired professionals can deal with these less important issues and day-to-day activities. The Finance as a Service (FaaS) model provides high-level CFO guidance and support. Your CFO, supported by your FaaS team, can then manage the previously mentioned crucial tasks that focus on growing the business.
What’s more, you won’t even need a big accounting team anymore, which will help you cut down on costs.
Accounting and finance software is a necessity in the modern age for any growing business. However, several problems stem from this need:
With such clear and critical problems, it’s evident that your company would benefit from a FaaS company with the right software and the one that understands what your business needs from their software solution.
Other potential signs
Besides these five significant signs that point to the need of hiring outside help, there are several, less critical ones that you might want to know about.
All of these signs have a straightforward answer, and you can quickly deal with all of them, as well as the main five, by outsourcing your finance & accounting needs.