Not infrequently seeing entrepreneurs struggling with spreadsheets, extraordinary payments & invoice problems, hiring admin staff and still spending time dealing with accounting & reporting problems.
In today’s hi-tech environment, businesses are generally very good in deciding which service will specialize and outsourcing. However, financial & accounting support needs are often underestimated by small businesses. With the exception to payroll which usually addresses all other functions not fully done or stored at home at the mercy of staff who do not meet the requirements.
This is mainly due to a lack of general understanding in small businesses on what financial functions & accounting and how they support business.
Big businesses benefit from the finance department that fully runs with special finance directors, financial controllers, management accountants, account assistants to manage sales duties and purchases of more routine books and credit controllers etc. Small organizations can also benefit from having special skills in the pocket. But because of small scale they usually choose to hire all rounding to do all their duties in the ‘Ministry of Finance’. This might work sometimes for the most not to provide effective and efficient support, good outsourcing companies.
One of my clients, a classic modern small business with a turnover of around £ 1 million runs in the UK with its success in owing China and Google, has employed part-time accountants / all-round book holders can support all financial & accounting needs. This model relies on one person and lacks checks and balances and benefits of special skills input for business. As a result, there are inaccurate reporting and prematurely, lack of obedience and control and communication problems. By switching to financial outsourcing models, my clients can enjoy the benefits of a fully functional accounting department such as big business and he also continues maintenance assignments to service providers.
