How do you know when it’s time to bring in help with the finances of your business?
Maintaining robust financial records can become daunting for some business operators. Outsourcing these tasks to experts like bookkeepers and accountants can alleviate stress and help you make good business decisions by providing accurate and timely financial information. However, how do you determine who to bring in and when?
Bookkeeper, accountant, or both?
It depends on both the size and complexity of the business.
Bookkeepers are ideal if a company seeks help with daily business transactions. They will assist with recording sales, reconciling bank accounts and preparing basic financial reports.
An accountant, adopts more of a strategic role, analyzing the financial information on a monthly or quarterly basis that may be prepared by the bookkeeper while also providing the company with insights, financial advice and tax guidance. If your business is relatively small and new, and you just need someone to capture the daily transactions, a bookkeeper may suffice. Companies often employ both, retaining a bookkeeper for daily transactions and an accountant for more strategic advice. The key is finding the team that responds to your unique needs and those of your company, whether that's both roles or just one.
Making the choice
When selecting a financial partner, there are benefits to working with individuals who have experience working in your industry. Having an accountant who understands your business and has that particular industry expertise can be crucial in helping to provide you with the best advice. These individuals will be more aware of future trends and developments within the industry, which can be crucial for long-term planning. They can also help provide tailored advice to the business owner and, in turn, aid with better decision-making.
6 tips for finding the right accountant
Choose an individual who invests the time to understand your business's unique needs. This includes being willing to provide personalized advice and support.
Check their availability and make sure that it works with the needs of your business.
Ask if they have an area of specialization (for example, tax planning or business consulting) and what types of services they can offer you.
Understand how they structure their fees and ensure this aligns with your business’s needs.
Find out what type of accounting software they use and whether you will be able to access it.
If possible, partner with an individual who has industry experience. This will allow them to provide deeper insights into the trends and developments within the food and beverage industry.
Doing it online
Another option, which can be done independently or in partnership with a bookkeeper or an accountant, is investing in an online accounting subscription. These services allow companies to automate financial transactions quickly, improving accuracy, while also providing an opportunity to create simple financial reports.
6 benefits of using online accounting platforms
Automation reduces errors and the need for manual data entry
The financial data is updated in real-time, paving the way for better decision-making
It’s cost-effective, with several companies offering a subscription-based model
All the information is hosted online, allowing the business owner to access information anywhere with internet connectivity
The tools and features can easily be scaled up with the business's growth, supporting your operation's evolving needs
Automatic backups decrease the risk of losing vital information
Subscribing to online accounting platforms can reduce some of the strain of financial record keeping. However, customization is often software-specific, so tailoring the program to meet your company's specific needs could be challenging. These systems have innate risks due to being hosted online, which could include potential data loss due to loss of connectivity and the risk of cyberattacks or data breaches.
Whether choosing to work with a bookkeeper, accountant or online accounting platform, accurate financial records are necessary for your food and beverage processing business. Finding the best method for you and your processing business can help you stay on top of your entrepreneurial game.
Adapted from: fcc-fac
Comments