My business has surpassed its start-up phase, great news! But what now?
Let's face it - accounting is never put forth as the most exciting topic in the room. As a business owner, you'd rather chat about your products and services, than about your debits and credits. When your business was in its Start-up phase, you were easily able to keep an eye on your income and expenses, maybe you even kept up with the bookkeeping yourself with some sort of basic software or spreadsheets - or looked over the shoulder of your loving spouse as they kept up with the processing of the finances. Why, because you as a smart business owner realise that while it may not be fun, accounting is not only a necessary evil, but also helps you to successfully keep your business afloat.
Have you outgrown your bookkeeping?
Most business owners find that as their business grows their time becomes more valuable doing other things. Your time is better spent chasing new leads, expanding your product base, or landing that tender, than posting day-to-day accounting transactions.
When you are no longer able to be involved in every small aspect of your business then you have probably already outgrown the bookkeeping phase. Bookkeeping is great - but bookkeepers are only able to handle the basic accounting functions related to posting accounting transactions, collections, deposits and occasionally reconciliations. Most bookkeepers are not qualified to provide you with what you need in the Growth Phase of your business - Financial Management and Management Accounting. This Management Reporting enables you to make real-time decisions, based on key performance indicators.
When is the need for outsourcing your Accounting triggered?
For most small to medium enterprises, one of the following events or triggers usually signal the need to start finding a new accounting solution:
Employing 5 or more employees
Employing individuals that earn higher than the taxable threshold
Reaching over R 1 million in revenue, triggering the need to register as a VAT vendor
The need to invest in capital expansion for your business
You as the owner can no longer be involved every aspect of the business
You have entered an accelerated growth phase
You require more sophisticated financial management reporting for decision-making purposes.
What options do I have?
If you answered yes to one of the above triggers, you may be realising that you need to investigate different options available to you, so that you can get on top of this while you still have a chance.
So what options do you have? If you are intending on engaging an option in which you not only have someone to keep up with the day-to-day processing and payroll needs of your company, as well as provide you with sound financial advice, then your options are as follows:
Hire a full-time employed, Qualified Accountant (at an average gross annual salary of R 320,000 - R 500,000, plus benefits)
A la carte outsourcing your needs to different firms - in other words contracting one firm to complete your payroll, another to complete your processing and another to keep up with your collections
Outsourcing all of your bookkeeping, payroll and management reporting needs to a single Client Accounting Services firm, so that all of your needs are taken care of under a single umbrella.
If you don't have the energy to closely investigate each of these options, let me make it easier for you - Client Accounting Services Solutions are consistently found to provide the best cost-value relationship for growing businesses and nonprofits. In terms of savings, outsourcing your business's accounting and payroll costs at least 50% less than building and maintaining an in-house accounting department in the Growth Phase of expansion. Businesses that choose to outsource have also been found to improve their core business focus, to avoid the risk and costs of hiring new employees, and to gain access to outside expertise that they could not otherwise afford.
Peace of Mind
In closing, this article may have given you an itch you didn't know you had - whether you find yourself needing to act on some warning signs you may have previously been aware of, or you want to place yourself ahead of the curve so that you aren't playing catch up, it is paramount to note that outsourcing your accounting offers tangible service options that can provide you with something even more valuable than cash savings in the bank - peace of mind.
Accounting Cornerstone provides outsourced bookkeeping, accounting, payroll, management reporting, financial statements and income tax services for all tax products, to growing and established businesses and nonprofit enterprises. We make use of only certified software for both accounting and payroll compilation, which provide you with cost savings as we employ our efficiency and knowledge to the best of our abilities. Let us do what we do best so you can do what you do best.
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