An essential but tedious job in any business firm is account keeping. It is one of the pillars of the success of a small business. Yet, this job is often grossly underrated and taken for granted. Perhaps we know why.
Most small business owners prefer handling sensitive information like money and numbers related to the business rather than delegating. And while this might work well for a while, there comes a time when transactions get complicated. Mistakes happen with too many adjustments and accruals. A small accounting mistake could be expensive in the future through missed payments, client defaults or tax penalties.
The solution? Delegating the task to an expert who can manage it regularly.
Calling in the Professional Accountant
Many small business owners avoid hiring a full-time accountant because of the expense. But there is a solution to that problem – outsourcing an accountant.
Outsourced accounting services come with multiple benefits:
- They bring in their expertise and experience in accounting.
- They can access the latest technological resources like accounting, invoicing, and data storage software or apps.
- Being a neutral party, your sensitive financial data is secure with them.
Such outsourced professionals can be hired for temporary stints as and when your business requires their services. But you can also hire a full-time accountant if need be.
5 Signs You Need Regular Account Keeping
And how exactly can you tell if you need regular, full-time account keeping? Well, here are a few indicators you need to look for before it is too late:
- Important Decisions Are Pending: DIY account keeping takes up time and effort. When your business is in that crucial transformative phase of going from small to big, your focus shifts to the next step. If you have difficulty finding time for planning and strategizing, which only the owner can do, you must delegate work. Putting some other employee on the job temporarily presents the same problem – employees need to focus on their primary job for the business to move forward. So, instead of passing the parcel of account keeping around your staff, hiring a regular accountant is advisable and taking the burden off everyone’s shoulders.
- Your Financial Records Are in Disarray: Your business is expanding, and the volume of work is stressing you out. Imagine what the numbers coming in must be like! Not recording those numbers systematically in financial statements could eventually spell disaster. With a regular accountant to handle it, you need not worry about maintaining records and tallying ledgers. It will be sorted, drafted, and filed for the perusal of your clients, investors and the CRA as and when required.
- You Constantly Worry About Data Theft: In a small business setup, everyone knows everything is happening in the firm. Often, employees fill in for each other and are well-versed with all departments. Naturally, as the owner, this all-know-all factor might worry you about any sensitive business data leaking. An outsourced regular accountant could help relieve your worries as they come equipped with reliable security and storage equipment that is maintained, backed up and updated periodically. This way, your financial statements and business records can be protected from hackers.
- Taxation Season Gives You Goosebumps: Your stress levels rise as tax season looms nearer. Every business, big and small, needs to keep tax documents in order in case the CRA comes calling. And when it comes to the complicated tax rules and deductions, it is better to leave it to the experts to avoid any run-in with the CRA. Even in the case of an audit, the accountant can handle matters deftly.
- Problems with Payrolls: An error in handling money matters and account keeping could have a big effect. Unintentional slip-ups in bookkeeping or accounting can sometimes lead to late payments of employees’ salaries, accounts receivable, accounts payable and other such payment-related responsibilities. Identifying and correcting such errors on time is necessary to keep the business running smoothly without ruffling the feathers of your employees – especially when your small business is poised for expansion. Professional accountants have the experience, expertise, and tools to deal with matters of such delicacy, so it’s better left to them to solve any such problems.
If your small business is showing any of the symptoms above, it’s time to hire the experts regularly. As your business flourishes, the amount of accountancy work will also increase and having someone handling it at all times will be a necessity rather than a convenience. Also, a competent accountant not only helps keep your accounts in order but can also suggest ways to optimize the use of the financial resources available to you.
Contact Glenn Graydon Wright LLP in Oakville for Your Accounting Needs
Talk to a professional accountant to outsource your account-keeping responsibilities so that you can save time and focus on your business. At Glenn Graydon Wright LLP, our accountants can provide services to outsource all your accounting needs. To learn more about how Glenn Graydon Wright LLP can provide you with the best accounting expertise, contact us online or by telephone at 905-845-6633.