Every entrepreneur brings a different skill set to the table. Some have extensive cross-industry networks that help them make the necessary connections, while others specialize in innovation and taking ideas from prototype to product. What every business owner has in common, though, is the ability to recognize areas of weakness – and delegate those to the right people to get critical tasks accomplished.
You may be one of many business owners who find accounting to be a challenge; can you see yourself filing tax for your global business operations, or hiring an attorney who specializes in international taxation compliance instead? One way or another, accountancy work must be done correctly, and if you’re not the best person to handle this aspect of the business, should you hire third-party professionals or look for in-house solutions? Here are four signs you should go for outsourcing.
Raising financial capital
At a particular stage, many businesses find it necessary to raise more capital to make strategic moves. Before you can bring in the investors or seek additional financing from bank loans, your accounting must be impeccable. You can’t risk even minor mistakes or omissions when so much is at stake. Outsourcing this work to a professional team with more experience and resources will give you the accurate financial documentation and reports that you’ll need to present to raise those funds.
Seasonal need fluctuations
Many aspects of business operations are seasonal; sales and marketing are the classic examples of such fluctuation. However, accounting work also falls into the same category for a lot of organizations. There will be periods of high activity, and other times when the job is fairly quiet. Run the numbers, and you may find that on the balance, you’re not getting that much value out of an in-house accountant. In this case, you may be able to maximize your investment by outsourcing your accountancy needs during the busy periods and handling the lower workload in-house during the offseason.
Not enough available talent
Hiring your accountant, or designating the work to a multi-tasking subordinate, offers some intangible benefits, including cultural fit and loyalty. But there are times when the right talent isn’t available due to any number of circumstances; you may be on a tight budget, or encountering difficulties with onboarding and settling in of new hires. Experienced candidates may pass up on joining your team, while a fresh graduate may not be able to hit the ground running under such conditions. Hiring a qualified professional gets you through the rough stages; you’ll be able to identify and hire the right candidate and bring them on board later on.
Growth and expansion
Business growth doesn’t always proceed uniformly. Sometimes you’ll end up having significant year-end growth and a corresponding need to account for the cash flow and increased resources. This is great for your business, but the rise in complexity may need to be handled by more experienced personnel, at least for the time being.
Knowing where to focus your efforts to yield the best results, and when to leave specific tasks in the hands of others, is one of the essential decision-making skills you can have as a business owner. Recognize these situations and bring in expert help for your accounting as needed.