One of the first questions typically asked when a prospective new client approaches us about taking over their accounting is “How much does it cost?”
Doubtless, cost will always be a factor in deciding which services partners to align your business with. But before you make a decision, make sure you understand all the costs involved.
The Cost of Accuracy
How often do you have to go back to your bookkeeper to have a report fixed? How often does information lack clarity or require adjustments and follow up? When you look at your reports, do you have faith in the integrity of the data?
This is the first area where cost can suddenly be measured in more than one way. We’ve inherited the books of countless companies coming from far “cheaper” fixed fee or hourly rate companies. These companies were spending far less on their accounting—but the books were always wrong. Information was never accurate or on time and provided nothing that the business could use to go further.
The Cost of Action
Do your financial reports help tell you where you’re going or just where you’ve been? One of our clients recently sat down to discuss his experience switching to us and shared that he was so used to receiving reports about “what happened” that he was truly surprised when he started receiving reports from us that told him what he needed to do in order to move his business forward. If all you need is a recap of what you spend or what you made, then you can look at the “cheaper” accounting services options. But if you’re looking to grow your business, the investment in accounting that supports your future is not only “cheaper”, its actually priceless.
AccountingDepartment.com client discusses when he compared what he was used to from other accounting companies to ours...
The Cost of Accountability
Who is currently overseeing your accounting? Is it an internal overhead expense? Are you managing the training, processes, and procedures yourself—or relying on an individual bookkeeper to maintain them? Being accountable to your accounting systems and processes is mission critical to ensuring accuracy as well as actionable insights—and we’ve yet to find many clients who have a fully accountable structure in place. Is it still “cheaper” if you cannot reliably say your accounting is not just getting done, but getting done right? Each and every time.
We challenge you to see the cost of your accounting in an entirely different light. Instead of looking at price straight on, consider the investment you’re making in your accounting—after all, is it not an investment if your accounting is then setup to return to you the information you need to grow your business? Instead of approaching accounting in the “old way” of reviewing the historic data and confirming “yes, that happened”, consider what you would spend if you had the “new way” of accounting—data that drove your decisions and grew your company.