When you’re the founder or CEO of a business, you are essentially the captain of the ship. When you first leave the safety of the harbor and launch your business, it might feel like your boat is taking on water faster than you can bale it out. As the captain, it’s up to you to decide what to do. You can take a look at the necessary parts of your business and decide that you need help. Or, you can keep sailing with business as usual and risk your ship sinking. Here are some reasons you might want to outsource your accounting department to keep your ship afloat.
Outsource your accounting when:
You need to cut costs
It may seem counterintuitive to hire help when you’re trying to spend less. However, as odd as it may seem, it is almost always cheaper to outsource your help. Save yourself from having to pay a full-time accountant’s salary (most start at $60k) and instead bring on a freelance accountant. Freelance accountants often times only cost a few hundred dollars a month, depending on the scope of work. Salaries aside, you’ll also save money by not having to pay for things like health insurance and other costs associated with hiring a full-time employee.
You do not have an accounting background
Anybody can do simple math, right? While I am not here to doubt your math skills, it is usually best to let accountants keep your finances in order. Accounting is much more than simple addition and subtraction. When you hire a freelance accountant, you are hiring somebody that has studied and practiced the art of accounting. No, reading “Accounting for Dummies” doesn’t count. It’s easy to make mistakes when you are learning a new skill and making a mistake when it comes to your business’s finances is not advisable.
You feel yourself burning out
When you’re the founder or CEO of a company, you’re taking on several roles, ranging from Captain of the High Seas to stowaway cleaning the deck. It’s easy to get burned out and it happens quicker than you think. Outsourcing one of your roles is one of the most efficient ways to give yourself a much needed breather. Now that you have more “free time,” you will be able to focus your energy on parts of your business that are in your wheelhouse.
You’re experiencing rapid growth
Growing your company is one of the most fun, yet stressful parts of running a business. When your business is experiencing rapid growth, you should focus your energy on running your business. Think about the opportunity cost, running your business should come first. This is also the worst time to make an accounting mistake. Things are already rapidly changing and difficult to keep track of. The thing that needs to be under control is your business’s finances.