Business is booming. You’re growing, taking on more – and in turn, you may find it challenging to keep up with day-to-day accounting and bigger picture financial insights. Accurate and forward-looking financial management is the foundation of a business, so it is critical not to fall behind. It may be time to ask yourself: Has your business outgrown its current way of doing things? Are we ready to translate our short-term success into durable profitability?
If your answer is a yes or maybe, it could be time to take the plunge and tap into a trusted advisor to carry out your accounting and financial management. But how do you know when your business is truly ready? Here are five indicators that you could benefit from a dedicated financial management service:
- You’re growing rapidly and can’t keep up.
Remember the days when you could spend a few hours a week recording transactions? You may not have the time or capacity that you once had. What was working for your business when it began may not be working now. As you grow and change, your accounting and finance function must grow and change with you.
- You’re currently outsourcing other processes.
Take a minute to consider your business’ attitude towards outsourcing in other areas. Do you already outsource payroll, public relations or other functions? If so, you understand the benefits. Why not adopt the same attitude towards accounting and finance? By outsourcing your accounting and finance operations, you’ll benefit from the skills and knowledge of experienced accounting professionals in a cost-effective way.
- You’re experiencing turnover and instability in your finance and accounting staff. Among the biggest benefits to outsourced accounting and finance: it spares your management from dealing with an internal staff and all that comes with it. Recruiting, training, monitoring, evaluating and transitioning responsibilities after a departure – it all takes up valuable, hands-on time. When there is turnover in accounting and finance, the books immediately fall behind. Accounts aren’t reconciled. Transactions aren’t recorded. Executives may not know where things stand. If you’ve seen a lot of turnover with regard to your finance and accounting staff, now may be the prime time to propose an outsourcing solution to management.
- You’re lacking a succession plan.
Accounting and finance employees are often among the longest-tenured in a business. With this tenure comes years, if not decades, of institutional knowledge. If this sounds like your business, it is critical to develop a succession plan; otherwise, a departure or retirement in the finance department could cripple operations. Be proactive and ask your key team members about their intentions, how long they intend to stay and what may change after their departure? If an internal replacement is not apparent, it may be time to consider an outsourced solution that decentralizes this knowledge and expertise, while still offering control and customization over your finance and accounting function.
- You’re struggling with maintaining accurate books and records.
Ultimately, if you’re struggling to maintain the books, you may have the wrong people in the wrong roles and your business systems may be broken. RKL’s team of finance professionals can assess your current systems and recommend changes or processes to make your business more efficient.
Working with a trusted financial management team allows your business to improve and increase its workflow, ultimately resulting in the cost savings and benefits that stem from accurate and timely financial information.
Contact RKL today to discuss your organization’s financial and accounting needs.