We all have an area of expertise, and yours is the core of your business. Whether it’s an innovative product or a staple service in your area, your expertise should be your main focus as you build your business. In reality, many business owners spread themselves thin by trying to wear many hats, juggling business priorities and leaving new ideas on the back burner. If you find yourself struggling to focus on what moves your business forward, you may want to consider the following three accounting strategies to get your business on the path to success.
1. Spend your time on what moves the business forward
Running a business is a non-stop commitment, with many moving parts, decisions to make, and day-to-day operations needed to keep the business running. Accounting can be one of the most time-consuming tasks, and it’s a vital necessity for every business. Accounting processes look different for each business, depending on size, industry, and niche. Many essential functions require daily or weekly attention, which can quickly eat up valuable time for a business owner trying to do it all.
As a business owner, you are dedicated to the success of your business and all involved. You may assume that you are responsible for managing payroll, inventory, vendors, and expenses, but there comes a time when you must reevaluate those priorities. When assuming the role of business accountant, without the expertise, you are bound to make mistakes—mistakes that can add up to costly errors. Misrepresented accounts mean inaccurate data used to make important business decisions and a mess to unravel at tax time.
Rather than spending your time on keeping the business afloat, consider putting those hours towards business decisions and relationships that will benefit both your current business and future growth and endeavors. Business owners can reclaim time by adopting automated cloud-based accounting apps or enlisting the help of an experienced business accountant. Outsourcing and automating repetitive tasks can save you time, help to reduce errors, and position the business for long-term financial success.
2. Use available cloud-based accounting tools
Businesses of any size, industry, and age can benefit from the many features of cloud-accounting tools. Even if you think your books are too simple to adopt a cloud-based accounting tool, you might be surprised to find out the many benefits. We work with businesses of all sizes and find that some of our youngest and simplest businesses benefit most from cloud accounting because of the foundation it lays for the business back office. With the proper processes and automations in place, scaling and growing your business requires less change and time.
Businesses that have a more mature back office, with many years of business data in the books, find that cloud accounting helps to free up valuable time, reduce human error, simplify processes, eliminate the need for double entry, and provide a clearer financial picture. Depending on the nature of business, one central accounting hub, such as Xero, can be adopted to manage all accounting aspects. Businesses with larger inventory, more employees, or payment processing needs can integrate additional cloud-based apps to automate and organize other aspects of their business. Below are top accounting functions to automate with cloud-accounting apps:
- Payroll – give your employees a mobile-friendly space to track time, manage PTO and have the ability to pay payroll taxes automatically from one app.
- Payments – accept payments from customers online, and in-person, with revenue automatically relayed to your central accounting system.
- Inventory – manage inventory virtually, and set automatic restock alerts, all coordinated with your purchase orders.
- Expenses – allow your employees to smart-scan receipts, directly into the app, with custom classification and approval alerts, resulting in up-to-date cash flow views.
- Bill Pay – view, approve, and pay bills from any supported device, in the office or on the go.
We know what you’re thinking—you don’t want to pay for more software. The great thing about cloud-accounting apps is that they are monthly services that are scalable, meaning you pay for what you need. As you grow, you can upgrade and add services that are relevant to where your business is in its lifecycle. In most cases, we see cloud-accounting apps saving business owners money long-term due to the fact that processes are automated, allowing you and your employees to spend time on vital functions that move the business forward rather than mundane, repetitive tasks.
Cloud-based accounting apps, such as Xero, give business owners real-time insights into their finances. Pulling reports and viewing financial data is simple, allowing business owners to make well-informed business decisions at any time. These data-backed decisions will shape the future of the business and path to success.
3. Delegate, outsource, and enlist the help of an expert
Delegate, delegate, delegate. Anyone who has been in a leadership or manager role has heard this phrase. Why? Because it allows you to use your expertise where it is needed most. In some cases this means delegating simple tasks to employees who are just learning the ropes or were hired to do that specific job. Delegating work frees up your time to make business decisions, develop client relationships, and research new products or services. Other times this means outsourcing tasks to someone who is an expert in a specific field. By outsourcing tasks like accounting, you are handing over your back office to someone who has a better understanding of the financial side of the business and can often suggest improvements.
Outsourcing your accounting to a financial expert is a great way to free up your time and ensure your back office is running smoothly. Bookkeepers can work on ensuring all incoming and outgoing actions have been properly accounted for, payroll taxes have been paid, and there are no discrepancies between bank feeds and the books. Enlisting the help of a CPA or outsourced CFO can provide the next level of service that can make an exponential impact on your business. CPAs not only assist in preparing your tax return, but they also provide financial advice that can elevate your business. An outsourced CFO is a step above, providing a level of financial expertise that can make a dramatic impact on a business. Outsourced CFOs are perfect for small to mid-size businesses without the need or budget for a full-time CFO. Outsourced CFOs can help educate business owners on their finances, interpret financial reports, set up accounting protocols, and much more.
Outsourcing and delegating accounting can get your business on the path to success. Don’t be afraid to start delegating and outsourcing right from the start, as this can ensure your back office is set up for growth. If you find yourself knee-deep in accounting work, it’s not too late to start delegating and outsourcing.
Accounting Strategies that Deliver Growth
If you want to set your business up for success, you need to get your accounting on track. Doing so will ensure you are prepared for growth. Our team of experienced cloud accountants can work with you in varying degrees, depending on your business needs and goals. We offer accounting strategies that help you to implement proper procedures, make the most of cloud-accounting apps, and take advantage of ongoing bookkeeping services. If you’re ready to elevate your business with the guidance of a financial expert, we’re here to help. Send us a message to get on the path to success.