by Blair Illiano
Running a small business is perhaps even more difficult, in many ways, than operating a large one. As both owner and manager, you need to consider a balance between income and expenses, general daily operating procedures, vendors, customers, clients and employees and it must be done single handedly or with a very small management staff. This alone requires daily multitasking that would test the skill and mental strength of anybody involved. So when it comes to using a third party for small business accounting, many make an instant fatal flaw of deciding against it. It is considered an extra expense that can be saved by doing it themselves. This is an error that too many owners make that ends with disastrous results. It is not a question of if you can afford an accounting firm, it is a question of if you can afford not to.
You need to spend money to make money
It is a fact, hiring a small business accounting firm will cost money. After all, they are in business as well. The difference is once hired they are in business to keep you in business. Your company thriving also helps them thrive. Once you have an accounting firm working for you, you now can remove this task completely from your daily responsibilities. Instead of spending hours behind a desk working on the financial side of your company, you can easily phone your accountant for updates, information and meetings. This alone now frees up countless valuable hours for you to be able to focus on your main goal, your company. Now with more time to focus on making money, you will be able to do just that. The money spend on hiring a small business accounting firm is more than saved by the time you can invest otherwise. Your income increases because of your new focus and their expertise backing you.
Work in your area of Expertise
You started your business because of your love of what you do. You have the opportunity to be able to turn it into a very successful company. You are not expected to be an expert in all areas. If accounting is not your strong point, do not focus on it. Outsource it. On the flip side, if accounting is your strong point and managing is not, the same rules apply. Hire help for your weak areas and stay focused on your strong areas. A very successful book has proven that people are extremely more effective when they are able to focus on their areas of strength rather than focus on their weaknesses. This is also true for running a company. Small business accounting firms are very experienced at what they do, it is what they love to do. Invoicing, bill collection and payroll can be left to those that know it well and practice it on a daily basis. This leaves you free to do what you enjoy and to make it successful.
There are many sides to running a company. It takes an investment mentally, physically and financially. Deciding against outsourcing areas for help is a fatal flaw that can destroy a company quite quickly. Small business accounting firms are there to help. No matter how great an owner is, a company will not survive if its financial side is not operating correctly. With small businesses, every penny counts, be sure that they are being allocated as wisely as possible.
About the Author
RBZ, LLP provides small business accounting ( http://www.rbz.com/cas/ ) services to help you effectively manage business accounting and the finance needs. To know if accounting is an art or science, you may also visit Ask.com.