How to Know when it’s Time to Outsource your Finances

No business can be successful in achieving its broader objectives without the right arrangements in place for the management and coordination of its finances. That might mean setting up a dedicated finance department – but you may struggle to find the resources to do so in the early stages of your business’s growth, or you might have issues in organising such a department effectively.

So many essential functions for the running of a business just happen to be financial ones – and that means you can’t take your own firm’s finance functions for granted. But you might also find yourself becoming overwhelmed as you attempt to manage your business’s finances and the core business, products and services yourself.

So, if your business is growing beyond your understanding and control, outsourcing may be a good idea. Here are some examples of when it might be the right moment to outsource.

  1. You’re getting overwhelmed

Work can pile up fast in business, and for a small team, this can soon be overwhelming. When you find yourself becoming overwhelmed, it might be time to outsource your finances elsewhere.

But there’s a catch. You need to find someone you can trust to take on those finance functions, and for a business you’ve built from the ground up, this can be quite a challenge. Luckily, accomplished companies such as PCFO offer outsourced finance director services to help organisations like yours ensure their financial operations are well looked after.

Enjoy complete peace of mind, while a chief financial officer (CFO) with years of financial expertise helps ensure much-improved results for this part of your business.

  1. Your business isn’t growing as it should

Businesses only grow when their finances are in check and cash flow is being well managed. If you notice that your business isn’t growing as well or as quickly as it should, there could be an issue in your finance department.

The most capable outsourced finance professionals can take an unbiased and critical look at your organisation’s finances. They can discover where budgets might be underutilised, outline important data, and explain financial challenges in a simplified, digestible way.

Such outsourced professionals can also produce financial reports that could be critical to your efforts to better understand this aspect of your business’s operations. This could further help them to play a major part in your business’s survival and success.

  1. Accounting errors are getting out of hand

When it comes to bookkeeping and accounts, you might imagine that the very occasional error will happen – at least where human beings are involved.

But even just the occasional mistake in this regard could be greatly damaging for your business – and if errors are occurring more frequently than that, it might be time to consider outsourcing to help prevent recurring issues.

Outsourced finance professionals can regularly review your accounting processes and identify any repeated errors, so that your organisation can take steps to avoid them in the future.

  1. You need to better deal with your backlog

An urgent problem in the past with paper processes, yet still a thorn in the side of various business owners in the more digitalised world of today, a serious backlog of accounts and invoices can sink a business if the right intervention isn’t made to tackle this.

Backlogs can happen when you deal with more cash, clientele, payroll and invoices than you can handle. Eventually, accounts can stack up, easily forgotten. Financial reports can stop occurring on time, and you could even lose sight of your accounts payable.

Here at Practical CFO, we offer outsourced finance director and related services to help prevent this from happening. Outsourcing your finance to a suitably capable professional from outside your company bubble can help ensure your financial operations remain up to date and compliant.

Would you like to know more about what could be possible when you partner with us? If so, it’s a straightforward process to get in touch with us via phone or email.

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shil paj