Running a business is a juggling act. You’re constantly managing operations, sales, marketing, and more. But what about your finances? Many business owners find themselves bogged down by accounting tasks, diverting their attention from core business  activities. If this sounds familiar, it might be time to consider outsourcing your finance and accounting. This post will highlight five key signs that indicate it’s time to make the switch. 

Sign 1: You’re Spending Too Much Time on Non-Core  Activities 

Are you spending hours each week reconciling accounts, chasing invoices, or generating  financial reports? According to a report by Sage, small businesses spend an average of 120 working days per year on administrative tasks, accounting for approximately 5% of their total manpower. If you’re bogged down in accounting tasks, you’re losing precious time that could be spent  on strategic initiatives, business development, or simply taking a much-needed break. Outsourcing your finance and accounting frees you up to focus on what you do best:  running your business.

Sign 2: Struggling with Errors 

Human error is inevitable, especially with repetitive tasks like data entry. Are you noticing more errors in your financial records? Are you struggling to keep up with ever-changing tax regulations and compliance requirements? Outsourced accounting firms specialize in accurate and compliant financial management, minimizing errors and ensuring you stay on  the right side of the law. 

Human error is inevitable, especially with repetitive tasks like data entry. A Gartner survey revealed that 18% of accountants admit to making errors daily, while 59% report making  several errors per month. Such errors can lead to significant financial discrepancies. For instance, according to Financial Times, in 2024, 140 public companies in the U.S. had to  restate their financials due to accounting errors, marking a nine-year high. Outsourced accounting firms specialize in accurate and compliant financial management, minimizing errors and ensuring you stay on the right side of the law. 

Sign 3: You Lack Access to Financial Expertise 

Navigating the complexities of financial management requires specialized knowledge that may not be readily available within your organization. Without access to seasoned financial professionals, businesses can struggle with interpreting financial data, making informed decisions, and developing robust financial strategies. Engaging outsourced accounting services provides access to experienced financial experts, including controllers, Certified Public Accountants (CPAs), and fractional Chief Financial Officers (CFOs), who offer strategic guidance tailored to your business needs. For instance, exact_ offers Fractional CFO services that deliver dedicated financial leadership without the full time cost, helping businesses unlock growth potential through customized financial insights and strategic planning. 

Sign 4: Your Technology is Outdated 

If your company is relying on outdated or inefficient accounting software, you may be seriously hindering your business’s financial management capabilities. Outsourced accounting firms frequently utilize the latest cloud-based accounting software, offering numerous advantages:

  • Real-Time Access and Collaboration: Cloud-based systems allow authorized users to access up-to-date financial information from any location, facilitating timely decision-making and seamless collaboration among team members. 
  • Automation of Routine Tasks: These platforms automate many accounting and banking tasks, reducing manual work and improving accuracy. For example, software can automatically import transactions, produce recurring invoices, and post transactions to the correct ledger. 
  • Enhanced Data Security: Cloud accounting software applies multiple levels of security, including advanced encryption and access control, to ensure that only authorized users can access your data. They also automatically back up your data, reducing the risk of losing vital financial records. 
  • Scalability and Integration: Cloud accounting solutions are designed to scale with your business, offering advanced features and varied integrations. Whether you are a startup or a large enterprise, you can tailor the software to meet your unique requirements at any point in time. 

By partnering with outsourced accounting firms that leverage these advanced technologies, businesses can streamline processes, improve accuracy, and gain real-time financial insights, ultimately enhancing overall financial management and strategic planning. 

Sign 5: Your Business is Growing Rapidly: 

Rapid growth is exciting, but it also puts a strain on your existing resources, including your finance and accounting functions. As your business scales, your financial needs become more complex. Outsourcing can provide the scalability and expertise necessary to manage increased transaction volumes, more complex reporting requirements, and evolving financial needs.

Empower Your Business with Fractional CFO Expertise 

Recognizing these signs early on can save you time, money, and stress. Outsourcing your finance and accounting allows you to focus on your core business, improve accuracy and compliance, gain access to financial expertise, leverage the latest technology, and scale your operations effectively. Contact Exact_ Partners today to learn how our outsourced accounting solutions can help your business thrive.