Business growth is the ultimate goal for every SMEs (Small and Mid-sized Enterprises) in the market, and yet the growth remains elusive for the majority of the enterprises. Pitting against large enterprises as they scale can be challenging if the business operations are not entirely prepared to take the load.
Roadblocks for Growth of SMEs – ‘What got you here won’t get you there’:
Take Bookkeeping and Accounting Services for example. As a small business owner, you may have become adept at managing your books and accounting tasks. Your cozy accounting department can handle all the minor booking and accounting tasks with ease too.
But as you scale and grow, the accounting and bookkeeping load can grow large and complex for your accounting department to function effectively. And on top of that, financial intelligence which is a critical for business growth is difficult to obtain with a heavy load of finance and accounting work burdened on your accounting department. Fast-growing businesses now need compliance, up-to-date books, accurate financial and management reporting process that makes it easy for the strategic leadership to track performance and take decisions based on KPIs and real-time data.
With substantial budgets under the hood, large businesses with dedicated financial and accounting departments can afford the best bookkeeping and accounting talent, tools, and software in the market to smoothen the sail and generate essential financial intelligence. So obviously, Small & Medium Enterprises (SMEs) which are relegated to limited budgets may not possibly compete with large businesses in terms of setting up dedicated accounting departments with all the sophisticated tools and technology.
So, does that mean that SMEs have missed the bus of business growth and can no longer compete with large established businesses in the niche?
Outsourcing back-office operations like Accounting & Bookkeeping not only levels the playing field but also gives a competitive advantage for Small & Medium Enterprises (SMEs). Here are some substantial benefits of outsourcing accounting and bookkeeping operations:
Access to the best bookkeeping and accounting resources in the market:
While large businesses spend massive amounts of time and money on hiring the best available accounting talents in the market, SMEs can simply tap and leverage even better services by outsourcing their booking and accounting work to expert professional back-office services firms like Back Office Accountants.
Our team of CFAs and accounting resources at Back Office Accountants are the industry experts who have worked with the leading business giants for years before stepping-in to help SMEs with their expertise. We are fully equipped with advanced and sophisticated accounting tools and software which simplify and accomplish complex operations swiftly in minutes. By outsourcing to Back Office Accountants you get to quickly leverage the best bookkeeping and accounting resources in the market at a fraction of cost.
Customized and tailor-made accounting and bookkeeping services:
Whether you are a business owner looking for complete accounting support or to plug the gaps in your accounting workflow, professional back office firms cater to both requirements.
For example, our team at Back Office Accountants can offer to stand-alone Accounts Payable Services, Accounts Receivable Services, or Bank & Credit Reconciliation Services based on the requirement. Given firms today want to upgrade their existing department with better resources on-board, Back Office Accountants can perfectly help you in this regard too.
Flexibility to scale up, or down:
The most important benefit of outsourcing bookkeeping and accounting functions is the flexibility to scale-up or scale-down the requirements based on business growth. This way an SME is only paying for the accounting services it uses, saving a whole lot of money which wouldn’t have been the case with full-time accounting department that comes with overhead costs like benefits like insurance, paid leave, and payroll taxes. You can simply scale up your requirements during the growth phase and scale them down during the normal phase just like that.
Frees-up time and money:
The path to successful business growth is filled with a large array of roadblocks and hindrances that can cost your both your time and money to solve. While bookkeeping and accounting operations play a crucial role in financial management they can be comfortably outsourced costing you a fraction of time and money as compared to setting up a dedicated department. Thus, outsourcing your back-office operations like accounting and bookkeeping frees up loads of time and money which can be spent by focussing on your core business.
While the above benefit makes a good case of outsourcing accounting and bookkeeping operations, the most important benefit of outsourcing is its ability to comfortably set up an SME for growth.
More often than not, most SMEs lose their hold on effective financial management as thy scale up. Given most of the finances are managed in-house, scaling-up, and competing with large businesses requires them to streamline their financial process and management. From tracking the cash flow, identifying tax-saving opportunities, making audits, forecasting financial estimates, and working capital management, SMEs aiming for growth need expert accounting services which can only be possible with Professional back-office firms like Back Office Accountants.
Having helped with hundreds of Small & Medium Enterprises in their ascent to growth, we house the best accounting talents, technology, and resources in the business who can help you too. So, if you are SME owner looking to outsource bookkeeping and accounting services you can contact us here: https://www.backofficeaccountants.com/