Making changes to your current bookkeeping and accounting system can seem overwhelming. We know because we’ve worked with many businesses that resist change so long they don’t realize their old systems – things that worked fine in the early stages of business – were actually hindering growth.
Take a hard look at your organization and if you recognize any of these signs, consider whether it’s time to update how you’re handling your accounting processes.
- Your books close late.
- Your accounting processes dictate your business processes.
- As a business owner, you’re handling the “sensitive” accounts yourself.
- Accounting activities are costing you money.
- Payroll mistakes are causing headaches and distract employees from primary business activities.
- You’d like some business advice you can’t get from current employees.
These problems are very common, and it’s easy to say they “go with the territory” when running a small, growing company. But in fact, according to ionopsis.com accounting problems cost your company money, curb your growth, and even lead to business failure. Are you ignoring any of these in your business?
1. Your books close late.
Maybe your in-house accounting personnel are overworked. Or they’re over their heads. Or your current software systems are outdated and overloaded. Closing the month late is a sure indication something’s wrong with your process.
2. Your accounting processes dictate your business processes.
If you’re offering translation services to clients, but haven’t figured out how to analyze its profitability, or every account requires a manual adjustment, you’re not only wasting time; you’re running your business without knowing your real numbers. As the old cell phone advertisement said, don’t be that guy.
3. As a business owner, you’re handling the “sensitive” accounts yourself.
This is not unusual, but it is a clear sign you’re not comfortable with your current accounting processes or personnel managing your company finances. payday loans uk is one of the biggest support and must in a business specially in financing your firm and needed a bigger money.
4. Accounting activities are costing you money.
If your payroll, AP, and collections duties are all rolled into one person, then mistakes and delays almost certainly occur regularly. Both cost you money – money your business could invest in new products, services, or equipment.
5. Payroll mistakes are causing headaches and distracting employees from primary business activities.
Even a small error on a paycheck is a big deal to the affected employee. Obviously, making corrections takes time – not all errors (especially when they’re in the employee’s favor) are reported. And whether it’s a few hours short or unrecorded paid time off, it’s a distraction that creates concerns among your staff.
6. You’d like some business advice you can’t get from current employees.
Where do you go for meaningful metrics? Who do you rely on for managing monthly and full-year forecasts? What about actual vs. budget reporting and variance analysis? If the answer to these questions is “I do it,” or “I don’t know,” you’re not managing your business by the numbers.
7. Business is booming.
This one is sneaky, but it’s very important to recognize. If your business is evolving quickly, the needs you have this quarter will be different from those you have next quarter. In-house accounting staff, working to keep up with a growing number (or size) of client accounts, are unlikely to recognize necessary changes in time to correct your accounting and financial processes, and maximize your company’s growth opportunities.