Founders create businesses because they have a passion or expertise in providing particular goods or services to market and often get caught up on focusing on items outside of their expertise. Being a startup means there’s always more work to do, and not enough time to do it. It is easy to get caught in numerous non-value add tasks that take anyway from working on the business. That’s why most success startups outsource certain tasks to companies or individuals who specialize in providing valuable time-saving services for a fee.
With all the advancements in technology, it’s easier and more convenient than ever to outsource. Here are five things you should consider outsourcing to experts.
1. Accounting & Finance
Most entrepreneurs are not Accountants. However, understanding cash flows or analyzing profitability of a business is vital to its success. Too often startups neglect building an accounting process until profits go downhill or cash slowly drains away. Setting up an accounting process for your startup is critical to the long-term success. An accounting process is also important because it allows your business to look forward. Startups or small businesses that that don’t have an accounting process in place find themselves trapped by past actions or constantly worried about having enough money to pay bills.
In addition to accounting process, setting up an accounting system is important for your startup as it will allow you to see how your business is doing and allow you to make decisions to strategically position your business for growth.
Look for a firm that does more than just bookkeeping. Partnering with someone that goes beyond debits and credits and gives advice on such things as cashflow will help set you up for success. Technology is vital to help provide necessary insights.
2. Graphic Design and Web Development.
Coming up with a brand-defining logo, an attractive website, and print materials can be extremely time consuming and difficult to get right. Using a professional graphic designer will help your business look its best. They understand a lot of things that you may overlook. Whatever your goals, there’s a graphic designer with the talent, aesthetic sensibilities, and visual skills to fulfill your vision and enhance your company brand.
Look for a graphic designer that offers web development to help streamline the process and provide a unified message.
3. Web Research.
Prospecting for new business and keeping up with the latest developments in your industry can be time consuming and daunting. A web researcher can research information you, whether it’s gathering information and statistics for an upcoming presentation or looking up the names of companies and contacts for a leads list. They can also organize this material in a form that’s easy to use and read.
4. Administrative Assistance.
If half your day is spent sifting through your overflowing email inbox, returning call and making travel arrangement, a virtual administrative assistant (VA) may be just what you need to streamline that frustrating process and keep you from being inundated by a constant stream of on administrative tasks that keep you from more value-added items.
Before you waste your time on something that is not in your expertise, consider outsourcing. This will make your to-do list shorter and free you up to focus on the things you’re best at and that generate the most income for your business.
Technology is Transforming Accounting & Finance
The Association of Chartered Certified Accountants (ACCA) recently came out with a report last month showcasing technology’s role in the future of finance. The report concludes that technology can revolutionize finance and accounting.
Technology has played a role in Accounting and Finance for numerous years. Originally, most software was targeted to large enterprise due to its cost and complexity. The cloud drastically changed the landscape by bringing enterprise type technologies to the SME market. Now 80% of CFOs have cloud as part of their technology roadmap. Here are the benefits technology brings as identified in an ACCA survey of CFOs:
- Improving efficiency and productivity – 70%
- Creating new value for a business – 53%
- Reducing costs – 33%
- Improving communication internally and externally – 20%
- Improving quality and standardization – 20%
As technology advances the above numbers will even be higher. Software companies have already begun to use artificial intelligence and machine learning.
Even though the returns can be great, it is important to be cautious about guaranteeing huge returns or overnight results. The report warns CFOs to use caution about where, when, and how they do or do not implement new technology.
A Technology Roadmap is Key
Technology is not automatically the solution. You need to understand your business goals and processes. Automating a bad process doesn’t fix anything. Implementing the wrong technology can be catastrophic and can possibly lead to employee turnover and insurmountable costs.
Companies shouldn’t rush into a decision, but also there is a lot of risk in not embracing technology and being left behind. The solution is to create a defined technology roadmap. A technology roadmap is a document which outlines the plan to reach short-term and long-term goals through the use of technology solutions. This type of roadmap typically provides key information which helps organizations make better decisions around technology investments.
Technology roadmaps are often driven by IT. However, it is important for CFOs and other business executives to be involved. They are the ones that understand short and long-term goals. Lavoie CPA continuously studies and evaluates technology. We also have the business acumen to apply the right technology correctly. Need help with a technology roadmap or software evaluation, give us a call.
Effective Virtual or Fractional CFOs Rely on Technology
Whether your CFO is full-time or fractional, CFOs are a pivotal part of your company leadership, helping you make crucial financial decisions and leading the execution of those decisions. What makes an effective CFO? Effective CFO’s excel at:
- Capitalizing on opportunities while avoiding ricks
- Strategic modeling driven by accurate data
- Speed and accuracy for fast decisions
- Data analysis and insight
No matter how qualified the individual is, without the right technology the job becomes extremely difficult. Speed and accuracy drive much of their effectiveness and is almost impossible without the right tools in place.
Lavoie CPA recognized this from the start and has always combined people, processes and technology. We provide the necessary tools to quickly digest accurate data and be able to make informed decisions to steer the business down the best path. With dashboards in place, companies can quickly see information in real-time and make changes were needed without waiting days, weeks or even months. Lavoie CPA also has the expertise to intercept the data and make impactful recommendations.
The core technology we utilize is Sage Intacct. Sage Intacct is an industry-leading financial management solution designed for the needs of strategic CFOs and their teams. In addition, we partner with other leading software providers that maximize our clients’ efficiencies. If you are looking for a virtual or fractional CFO also consider what technologies are being utilized so that you can fully maximize your investment.
Most companies that are thriving view accounting as a strategic function. Companies relying on bookkeeping have a hard time keeping up in today’s changing climate. Bookkeeping by itself does not provide opportunities. In a fiercely competitive work environment, companies that properly manage finance can grow and protect themselves from risk.
The opportunities are exciting for the future but it also comes with lots of challenges. Too many companies are stuck looking into the past because of lack of expertise and or technology. It is important to understand the past, but essential to have the knowledge and tools to be able to see in real-time and make educated predictions into the future. As companies grow, hiring and retaining qualified employees can be a difficult task with lots of uncertainty.
A growing number are relying on Accounting as a Service (AaaS) to gain a competitive advantage. AaaS combines tactical and strategic accounting and includes leading software.
Top 3 benefits of Accounting as a Service:
- Focus on Core
- Concentrate on growing the business
- Efficiency gains
- Eliminate staff turnover complexities
- Ability to scale as you grow
- Professional Expertise
- Qualified controlled/CFO leading accounting and finance department
- Improve cash flow
- Reduce financial risk
- Audit ready at all times
- Real-time visibility into your business performance
- Increased security
- Reduced IT headaches
- Integration with other applications to eliminate information silos
Forward thinking companies put themselves a head of the curve. Interested in learning more about Accounting as a Service? Contact us.