Accounting Advice

6 Signs It's Time To Outsource Your Accounting

Six Signs It's Time To Outsource Your Accounting

Ever hear about the business owner who withheld payroll taxes from his employees for years but neglected to submit them to the government? He’s one of our clients.

His accounting mistake wasn’t intentional – it was simply the result of an unqualified business owner biting off more than he could chew. We’ve seen this situation before and in many cases, the employer isn’t made aware of the mistake until they receive a notice in the mail. These notices send business owners into a panicked tailspin because they don’t have the capital to pay the hundreds, or sometimes thousands, of dollars they owe and they aren’t even sure how to begin fixing the problem.

In the end, we were able to get our client and his books back on track. Unfortunately, he had to pay three times more in penalties and interest than it would have cost him to have an educated team of accountants on his side from the outset.

We could write a novel with stories like the one above. But when is the right time to outsource?

It's certainly not an exact science but below are the most common reasons we see in our practice:

1) You are focusing too much of your time on accounting versus business development (opportunity cost)

2) You need a layer between customers and/or vendors (especially if you have high accounts receivable or accounts payable)

3) You are getting behind on bills; need better cash-flow planning / payment plans

4) It's time for payroll to be setup

5) You have raised or are planning to raise outside capital

6) You are getting notices or penalties/interest for lack of tax (payroll, income, etc.) filings

Think you don't have the resources to outsource? You would be surprised how much outsourcing saves you in the long run.  Tell us about your business and let's do some more talking to see how we can help. 

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