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. Lack of Relevant Experience or Expertise:
Many accounting providers possess skills, but they may not align with your specific business needs. For instance, firms specializing in tax and audit might lack the expertise required for corporate accounting, month-end close, and financial analysis. Conversely, small business accounting firms may not be equipped to handle the needs of larger companies that have outgrown basic accounting software like QuickBooks or Xero. If you feel your business has outgrown your current provider's capabilities, it's time to seek a more suitable partner.
2. Inadequate Understanding of Your Business Model:
Effective accounting hinges on a deep understanding of your business model. Your accounting provider must grasp how your business functions, including your organizational structure, operational metrics, customer base, and unique processes. Without this knowledge, they might misclassify expenses, leading to issues in matching revenues and expenses accurately.
3. Absence of Actionable Reports:
Actionable reports should transform accounting data into insights that drive informed decisions. Your accounting provider should possess the skills to relate key metrics to your financial data, providing high-quality reporting that aids in moving your business forward. If your current provider isn't delivering these insights, it's time to consider a change.
4. Lack of Proactivity:
Exceptional accounting providers take a proactive stance toward your finances. They continually seek ways to enhance your financial processes and offer recommendations to save costs. If your current provider is merely reactive, they may not be fully committed to helping your business succeed.
5. Poor Responsiveness:
Your accounting provider should be responsive to your needs and adaptable to evolving requirements. If you frequently find yourself chasing them for information or waiting an extended period for answers to straightforward queries, it's a clear signal that you should explore alternative providers.
Conclusion
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.