In order for a business to grow, it needs accurate accounting. Your business may evolve from a sole proprietorship to a small business, and then launch into a full-blown corporation. In the growth stages, you may not be able to hire a full-time, on staff accountant. As you transition your business, it makes sense to outsource your accounting and not bog down employees with financial tasks. When entrusting your books to someone else, you must be careful that you’re putting your business into hands you can trust. Here are some common mistakes you can make when outsourcing your financials - and how you can avoid them.
Keeping it in the Family
When it comes to keeping your company’s books, it can be tempting to hire a family member or friend, but if something goes wrong, you risk losing your relationship with that person (which could extend to an entire group of people.) Don’t hire anyone to do your books that you wouldn’t be OK with firing.
Being too Trusting
Every year, 400 billion company dollars are embezzled nationwide. Having access to a company’s financials can be a very tempting prospect. It’s not uncommon to hear of a financial manager using company funds to pay for their own personal expenses. Recovering embezzled money is difficult, time-consuming, and sometimes, completely futile. Start on the right foot with a bookkeeping company that has an excellent reputation for trustworthiness. Reputable, meticulous accountants can help prevent internal fraud.
Waiting Around for an Answer
There is not much more frustrating than poor communication when you’re trying to run a business. Some companies simply don’t respond to phone calls and emails in a timely fashion. However, you are basing important business decisions on your company’s financials. If you are waiting around for an answer from your accountant, you’re losing time and money.
Poor communication between you and your bookkeeper can lead to inaccurate work and failure to meet regulatory standards. It can cost you thousands in fees for taxes or invoice payments not received on time. JADDE Financial Solutions will always respond promptly - providing you with the information you need, when you need it.
Putting up with Inadequate Staffing
If your business is operating, your accountants should be too. Some accounting firms don’t have a contingency plan for when a staff member suffers an illness, goes on vacation, or leaves the company. At JADDE Financial Services, we have a team of employees who are fully trained on the latest accounting software. Everyone on our team is continually educated and updated. We work together to manage our clients, ensuring that your business is never left in the lurch.
Going for Bargain Prices over Quality Work
As you interview accountants, beware of fees that seem “too good to be true.” You may be tempted to go with the lowest bidder, but doing so could see you slammed with hidden charges later. Make sure any estimates you receive include all services you need now and will potentially require in the future. Additionally, be sure find out how the company will handle an IRS audit. Upfront billing is a hallmark of our business ethos at JADDE. We will never surprise you with sneaky billing practices.
Making Your Company Vulnerable to a Data Breach
Handing over your business financial information is a scary prospect. The entire health of your company depends on those numbers. Can you be sure that the accountants with whom you are entrusting your business won’t sell your information to your competitors? Make sure that the security at the bookkeeping firm you choose is up-to-date and reliable. Data breaches can expose your financial information to criminals and the damage to your business can be irreparable.
Making the decision to outsource your financials is an intelligent decision when growing your business as long as you work with the right bookkeeping professionals. JADDE Financial Solutions offers reliability, trustworthiness, and an impeccable record. Let us take your books off your mind so you can get back to the business of doing business.