Like many small business owners, you might have started off doing your own accounting to save money. Or maybe you simply didn't have enough accounting data to require any outside assistance. However, once your business grows to a certain point, you may no longer have the time you once had--or the skills to stay on top of your books as the data grows more complex. With a successful business to run, making the transition from do-it-yourself, in-house accounting to using a professional accounting service may be the next step for your continued growth.
Explore Your Accounting Services Options
When making the leap to professional accounting services, it’s important to take the time to vet your options. A comprehensive bookkeeping and accounting service may offer tiers of service, ranging from monthly, weekly and daily services. You may find you only need your books reconcilied and closing monthly at first--and then grow to find out you require more advanced services, such as assistance with budgets and forecasting. Not all accounting services can scale their services to your needs so if you anticipate growth, take both your current and future needs into consideration.
Some outsourced bookkeeping services will also offer controller level services to provide additional reporting and financial oversight. This doesn't likely matter to you if you have limited needs--but the day you need to track your job costing or switch to an accrual basis, it likely will matter quite a bit. Make sure you only get what you actually need--there is no sense paying for high level services you can't use--but having them there for when you do may prevent you from having to start the hunt all over again when you outgrow your service provider.
Transitioning To Outsourced Accounting Services
Even after choosing the right provider, the transition isn’t always easy. If you put off the decision too long, you might find that your accounts are in disarray--and good bookkeeping services will depend on the value of your data. If you have multiple months worth of accounting to do, then you’re likely to face extra costs just to get caught up--but if you act on it swiftly, your bookkeeping service can anticipate potential obstacles and get you back on track quickly.
You will need to provide your QuickBooks file and have a thorough review to ensure all processes and procedures are noted and transitioned to the new bookkeeper. This process is critical to the health and integrity of your company's financial data--so make sure to dedicate time to helping in any way necessary. Don't hold back about any specific data or process you have--even if it means disclosing having overlooked something for a long time. It doesn't help anyone to keep problems secret.
The Benefits Of Back Work and Start Up Processes
In addition, your service provider may discover you weren’t as good at accounting as you thought you were. This could mean you face a overhaul of your accounting books to make sure they’re really up-to-snuff and audit-proof. As dire as that sounds, it’s worth the expense. After all, accountants are cheaper than tax penalties. Make sure to connect your tax CPA to your bookkeeping services early so they can have an open line of communication and cover every detail together.
Do yourself a favor when making the leap from do-it-yourself accounting to outsourced accounting and bookkeeping services. Give yourself time to pick the right service by the right people. Don’t wait until your accounts are a mess--and if they already are, seize the day to rectify that instead of putting it off. Make sure your chosen services can provide you with what you need both today and tomorrow--and be upfront about your needs and expectations. If you do these three things, your transition from do-it-yourself to professional accounting services will hopefully be seamless.
If you think you're ready for professional accounting, bookkeeping and/or controller services, schedule a time to speak with one of our representatives today.
