In Pursuit of Profit
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![]() 2020 has been a year of disruptions and reactions. Companies have reacted to supply chain interruptions, new regulations, shifting market demand, and staffing issues, among other challenges with some faring better than others. Marcus Wagner explains, “Because of COVID-19, businesses and their accounting departments are going through a cycle of shock (and maybe some denial), survival, learning and adaptation. For those of you who haven’t done so yet, it’s critical to begin the shift into the learning and adaptation phases as quickly as possible so we emerge stronger as a result." Adapting has been critical thus far and will continue to be as we move into 2021. An adaptation mindset allows your business to respond to current challenges and anticipate future disruptions to generate better financial outcomes. Companies with accounting teams that adapt quickly can minimize revenue loss during a downturn and capitalize on revenue opportunities faster during a recovery period. Outsourcing is not a new concept. In fact, according to survey data, 37% of small businesses outsource at least one business process already. More technical tasks like accounting, IT services, and digital marketing are the most likely to be outsourced, but any business process can be handled by a third-party.
With less than 15% of business owners and managers reporting that they “feel like they are spending their time on the right activities,” outsourcing provides a huge opportunity to reprioritize your activities and drive the business forward. As Matthew Grattan explains, “As costs and competition increase, it’s time to ditch the ‘I can do it all myself’ mentality and offload those onerous back-office tasks.” While outsourcing can certainly be used to offload tedious activities, it can also be used strategically to obtain professional expertise in critical areas. Outsourcing frees up more time for selling and merchandising, which is especially important during times of significant growth. Many companies rely heavily on outsourced activities to scale up operations as new business opportunities become available. But what should small businesses outsource exactly? ![]() Do you need to hire a bookkeeper? If you are asking the question, the answer is yes! Most commonly bookkeepers are brought in due to lack of time, lack of financial expertise, or growing business complexities. Whether a bookkeeper is freeing up time for an owner to engage in revenue driving activities or providing deeper financial knowledge, this professional role can be a crucial hire at a growing business. When you are looking to hire a bookkeeper for your small business, will any bookkeeper do? Or do you need a bookkeeper that specifically works with small businesses? And, what can a small business bookkeeper offer that you cannot do yourself with QuickBooks or another accounting software? 8/20/2020 How to Hire an Accountant Fast![]() We see it every day – businesses that put off hiring an accountant for too long. By the time they come to us, they have finally hit the breaking point, and now they need someone immediately to get their books in order and implement strategic financial planning. They ask questions about how quickly an accountant can be onboarded and approach the hiring process with panicked urgency.
When business owners hire third-party accounting firms to manage their finances, they may be provided with an engagement letter. This type of document is new to many business owners, especially those that are outsourcing financial functions for the first time.
Essentially, an accounting engagement letter is an agreement to provide services to a client. The agreement describes the business relationship and sets expectations for both parties in a way that is less formal than a traditional contract. Business owners frequently wrestle with determining which activities should be outsourced to a freelance bookkeeper or accounting company. Budgetary restrictions can limit a company’s ability to outsource financial tasks, as can concerns over delegating duties. In these instances, it often makes sense to offload tasks that will have the greatest ROI first, and then include others later as means allow.
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10/26/2020