Over the last few years, the rapid acceleration of accounting technology has redefined the way businesses go about their bookkeeping, operations, and more.
This ramp-up in technology has caused a rise in the need for professional outsourced services and automation opportunities, however, business owners are still facing some challenges that can be avoided in 2023.
2023 Business Challenges
Time & Focus. One of the most common challenges for businesses in 2023 is business owners that are bogged down by the tedious tasks related to bookkeeping. It is not uncommon to see business owners spending a large chunk of their time each week dealing with the bookkeeping of their business, creating financial reports to monitor its health, and trying to make decisions based on that data.
Not every business owner is an accountant, and they shouldn't have to be. Spending all of this time on bookkeeping is an easy way to lose track of the big picture, not focusing on growing the business, and not selling the product or service that the business offers.
Cash Flow Management. Cash flow is another common challenge for new and existing businesses, but it all starts with management. For any business, it is crucial to manage cash flow efficiently and effectively. This requires up-to-date financials and quick reporting to get an inside look at how the business's cash flow is doing.
As businesses grow, every element of working capital should be carefully controlled to maximize the free cash flow of the business. Effective accounts payables and accounts receivables management and automation are essential and will be a major step in maintaining a healthy cash flow.
The Right Systems. All businesses produce and rely on large volumes of data and information, but trying to manage that across various systems or manually is a recipe for disaster. Financial records, sales, inventory, and more should be tracked in one place and with as little human input as possible.
Having a manual process, such as managing inventory numbers or entering journal entries, opens up the possibility of human error. This will hurt a business in the long run and provide inaccurate figures for business leaders to make decisions based on.
Overcoming These Challenges
Outsource Areas of the Business. The last thing a business owner wants is to be stretched thin across various areas of the business. By outsourcing areas of the business, owners can relieve some of their responsibilities and allow the professionals to handle them.
Outsourcing a business's accounting department and working with a client accounting services (CAS) provider is becoming increasingly popular as it removes a large amount of stress from a business and ensures that the financials are being handled properly. With a CAS provider, business owners can be confident that their bookkeeping and financial reporting will be completed accurately and efficiently.
Use a High-Level ERP System. Leveraging the benefits of a high-level ERP system like NetSuite opens up a world of opportunity for businesses. Having individual systems in place across different areas of the business may be something that has naturally occurred over the years, and that may work for the time being, but having a system that ties everything together in one place creates much more opportunities for departments to be on the same page.
Using a full ERP system like NetSuite, which can cover all areas of a business, will allow business owners to expand to automating inventory management, order processing, financial dashboards, reporting, and more. The opportunities are endless when strong automation software is behind a business.
For those looking for more information about client accounting services, NetSuite, and how both can help a business, reach out to AccountingDepartment.com today. AccountingDepartment.com is here to alleviate businesses of their bookkeeping challenges and provide them with an unmatched team, technology stack, and service offering that will set them up for a successful future.