The Struggle for Early Stage Companies
Early stage companies can often struggle to keep up with their day-to-day accounting requirements. This is especially true, as founders and management try to handle accounting in addition to all their other responsibilities. This challenge is compounded as business activity and business complexity increase. Accounting solutions for these types of companies vary of course depending on their industry; however, outsourcing accounting services can be beneficial in order to keep staff focused on core competencies and revenue-generating tasks.
Solution: Outsource
Nothing is more important or sensitive to your business than your financial position. That is why you should invest in both people with deep experience and an infrastructure with enterprise strength. Early stage companies can find solutions to their day-to-day accounting requirements by outsourcing the following services:
1. Transactional Requirements
This includes accounts payable, accounts receivable, bank reconciliations, payroll processing, asset tracking, etc.
2. Financial Control and Decision Making
This could be for a short term engagement to review processes, set up budgets or refine financial reports or on a continuing basis. Additionally, early stage companies can hire a consultant to act as the fractional CFO or Controller that oversees daily activity, managing cash flow, communicating with tax advisers and presenting financial status at board meetings.
By leveraging resources and enterprise quality accounting applications, you will have the controls, confidence and focus to help drive operational improvements in your business. Companies in the early stages usually need to spend most of their attention on acquiring clients, developing business and performing their core competencies. The day-to-day accounting requirements can add to the stress of all the other challenges of being in the starting phase of growing your business. Deciding whether you should outsource or not depends, of course, on your situation and business; however, it undeniable that outsourcing services that are non-revenue generating can be extremely beneficial and valuable.