Why Outsource Your Finance
and Accounting Department?
Get a CFO and full-service finance and accounting team.
Without the expense of full-time employees.
As an entrepreneur and business owner, you have more important things to do than keeping your own books or analyzing your financial metrics. Hiring full-time accounting staff is expensive. Accounting services are one of the most cost-effective functions a small-size company can outsource.
With a remote, US-based accounting team, small business owners have access to knowledgeable, trained professionals available only when you need them.
Get back to running your business and leave the accounting to us.
Most small business owners work a lot of hours and wear way too many hats. Even basic upkeep of the finances is sometimes difficult and often it is done at the cost of something else (family time, nights & weekends, sales, business development, product development, etc).
You likely already have enough human resource issues. As the CEO or executive director your job needs to focus on the people who are generating income, not the distraction of accounting.
Unless you have experience and training as an accountant, you are unlikely to have the best accounting skills. You are, however, an expert in your own industry. When activities like accounting are outsourced, you free up your time to concentrate on the tasks you are great at.
By outsourcing your finance and accounting you will no longer have to endure the hiring process and lose valuable time training accounting staff. You’ll also free up valuable space in your office and save on related overhead costs, including expensive employee benefits.
Data Insight Enablement
Data driven companies are able to make better decisions more quickly than those that are just relying on gut feelings. Advancements in technology allow businesses to measure so much more than just the profit and loss. These data driven KPIs allow business owners to objectively look at data a trends.
Moreover, todays data models can be used to simulate future performance based on past trends which truly unlocks the power to see the potential of a decision before it is even made.
Better insight allows for better decisions. A business owner who keeps a finger on the financial pulse of an organization is better prepared to drive it forward by answering questions such as:
- Am I pricing my products properly?
- Who are my most profitable clients?
- Should I hire more employees? If so, how much can I afford to pay them?
- Where should I invest my marketing dollars?
- Do I have enough cash to make payroll?
A bookkeeper will not be able to provide this type of in-depth knowledge. You need management reporting to confidently answer these questions and make strategic decisions which impact profitability.
The accounting and bookkeeping service model has not really changed. Many small business either hire an external bookkeeper that they work with that prepares some very basic financial reports. That information is usually passed to a CPA once per year at tax time. Or they hire an internal accounting manager (often an office manager with multiple responsibilities), who usually does the books in the same manner in which the owner did.
The problem with these models is businesses can quickly outgrow one person in the terms of both volume and or skill. The businesses limp along in this model until they just can’t take it anymore, then shell out $100K or more per year and hire an internal controller. Again a single person with the risk of turnover, overloading or stagnation. Not to mention that the $100K person is now spending some of their time entering invoices and doing other data entry tasks.
When you have an in-house team, scalability becomes a big challenge. If you suddenly grow and need a greater workforce within your accounting department, it can take up to 26 days to hire a new employee. This doesn’t include the time needed for the new hire to hand in their notice and work through any notice period.
In addition, a new hire needs time to settle within your organization and it could take them six months to reach their full potential.
Until then, your business and your accounting team specifically, might suffer. In addition, if the sudden increase in demand reverses, you will have too many staff and could face extra costs in maintaining the in-house accounting team or alternatively, in paying redundancy.
In contrast, Tech Savvy CFO has a team ready to help you for only as much as you need them.
By outsourcing, there is no need to buy extra hardware and software for your accounting needs. Tech Savvy CFO provides access to leading accounting software and financial tools, and will has the expertise to properly use them to help your business.
This prevents you wasting your time and money trialling packages which don’t offer you the accounting coverage you need. It also means you don’t have to learn how to use a new piece of software or end up making mistakes in financial entry because you don’t know the system.
Cloud-based accounting applications allow you to access financial data and records online, giving you up-to-date access to your information such as cash balances, at any time, from anywhere. With timely, accurate accounting records and reporting at your fingertips, you have total visibility into the financial health of your business allowing you to make more confident and informed decisions.
Because Tech Savvy CFO invests heavily in sophisticated cloud-based software systems, we are able to employ a level of automation that most of our customers cannot reach on their own. For example, automation of the billing and collection process saves time and expenses and improves cash flow by faster collection. Automating a business’s back office functions has many benefits beyond improving cash flow:
- Lowers the labor cost of accounting
- Speeds up the time to produce reports
- Supplies more reports and data than a manual process
- Lowers mistakes from human error
- Decreases risk of fraud by providing more transparency and workflows