Are you currently outsourcing your company's accounting but not seeing the results you were hoping for? You're not alone. In fact, a lot of business owners find themselves in this situation. While outsourcing your accounting can be a great way to save time and money, it's important to make sure you're working with the right provider. Here are five reasons why your current outsourced accounting might not be cutting it:
1. They're lacking in experience or expertise
There are many accounting providers who may be highly skilled, but their experience might not align with your business needs. If you need business insights and actionable reports, accounting firms who focus on tax and audit generally do not have the experience for corporate accounting, month-end close and financial analysis. Likewise, small business accounting firms will not have the necessary experience to properly provide services for a mid to large company that has outgrown their QuickBooks and Xero accounting software. If you feel your company has outgrown the most popular small business accounting software, then you might want to find a new accounting provider with the experience to match your current size.
2. They don't understand your business model.
If your accounting provider doesn't understand your business model, they're not going to be able to provide the level of service you need. Your accounting provider needs to understand how your business operates: your org structure, operating metrics, your customers and nuances of your organization's processes. Without this knowledge they are likely to misclassify your business expenses and cause issues with matching revenues and expenses.
3. They're not providing actionable reports.
Actionable reports require accounting data to be converted into insights that help you make informed decisions about your business. Just the same as above, your accounting provider will need to have the skill to understand key metrics, unit economics and operational understanding of your business. A quality accounting provider will be able to relate the metrics to the accounting data to ensure a higher quality of reporting. If you're not getting reports that help you move your business forward, it might be time to look for a new accounting provider.
4. They're not proactive.
The best accounting providers are proactive in their approach to your finances. They should be constantly looking for ways to improve your financial processes and make recommendations on how you can save money. If your accounting provider is only reactive, it's likely they're not doing everything they can to help your business succeed.
5. They're not responsive to your needs.
Your accounting provider should be responsive to your needs and able to adapt their services to meet your changing requirements. If you find yourself always having to chase them for information or waiting weeks for answers to simple questions, it's time to look for a new provider.
If you're not happy with your current outsourced accounting situation, don't despair. There are many great accounting providers out there who can help you get the results you need. Just make sure you take the time to find one that has the right experience, expertise and understanding of your business. If you are in the market for a new accounting provider, GFT is here to help. GFT is built on controllership and FP&A (financial planning and analysis) experience, and we specialize in mid-market companies, you won't find the same blend of skills from traditional small business bookkeepers, tax and audit firms.