5 Reasons Why Family Businesses Should Outsource Accounting in 2023
When it comes to running a family business, the sooner you outsource your accounting, the better. Not only can doing so save you time and money, the advice and guidance of an industry expert will create a solid financial foundation for your business and fast-track you to success. Here’s why family businesses should outsource accounting in 2023.
#1 – Expertise
Accounting is a complex and detailed process that requires specific expertise. By outsourcing your accounting, you’re tapping into the knowledge and experience of an industry professional who can help you make smart financial decisions for your family business.
A good accountant will provide you with advice on everything from bookkeeping to tax planning, ensuring that your family business is operating as efficiently and cost-effectively as possible.
They will also be able to help you track your business performance, identify areas of improvement and make suggestions for growth. In short, an accountant can help take your family business to the next level.
To get the most from the expertise of your accountant, work with them and alongside them, giving them what they need when they need it, and taking onboard the advice you are given. In terms of how much you’ll pay for this higher level of service, successful family businesses we currently work with are investing between 2% and 3% of their annual turnover is their outsourced, digital finance team with Satori. They see this as an investment in winning back time and in gaining peace of mind. We will deal with all your data, improve your processes and help your regain passion for your family business by taking care of all the money matters.
#2 – Avoid Mistakes
Tax rules, regulations and incentives change all the time. Chartered accountants are required to stay up-to-date with these changes, meaning they are far less likely to make costly mistakes that could cost your family business money.
An accountant will also ensure all your financial records are accurate and complete, helping you avoid any penalties from the tax office. This can be especially important for family businesses who may not have the time or resources to keep on top of complex financial paperwork.
Outsourcing your accounting is a risk-free way to ensure that all your finances are in order and that you’re compliant with current tax regulations – so long as you don’t opt for someone without the right skillset or a very cheap, unreliable alternative.
#3 – Flexibility
One of the great advantages of outsourcing your accounting is the flexibility it offers. An accountant can work with you on a short or long-term basis, depending on your needs.
If you’re looking for help setting up and maintaining good financial practices for your family business, an accountant can provide ongoing support. If you only need assistance with specific tasks such as tax return preparation, you can hire an accountant for a one-off project.
This flexibility makes outsourcing a great option for family businesses who are constantly changing and evolving. It also allows you to get help only when you need it, without the added expense of hiring a full-time employee.
#4 – Better Cash Flow Management
Cash flow is one of the most difficult aspects of running a family business. Poor cash flow can lead to missed opportunities, late payments and even bankruptcy.
An accountant can help you improve your cash flow by providing advice on how to better manage your expenses and income. They will also be able to recommend ways to increase your revenue and reduce your costs.
By outsourcing your accounting, you’re getting the advice of someone who is experienced in maintaining and improving cash flow in family businesses.
This can be especially valuable during times of change, such as when your family business expands or contracts or you move into new markets. With their help, you’ll be able to adapt to these changes quickly and with minimal risk of lost income.
Finally, accountants will be able to use your data to predict current and future tax bills, and tell you how much to sit aside every month to save money for tax bills…….much better than falling into arrears and having to start playing catchup. Plus, if your family business can’t seem to afford to set aisde funds for future taxes, this could mean you need to make some changes in your family business to generate more profits………which is exactly what your accountant can help you to do as well!
#5 – Less Stress
As a small business owner, you have enough to worry about. Accounting is not only time-consuming and complex, it can also be stressful when you don’t know what you’re doing or where your money should go.
By outsourcing your accounting, all the hassle will be taken out of managing your finances so that you can focus on running your business. And with a trusted accountant providing you with advice and support, you’ll be able to sleep well at night knowing your finances are in good hands.
Summary
If your family business is struggling to get on top of its accounting, it might be time to outsource this important function to a professional who can help take the stress out of managing your finances and help your family business reach its full potential. In 2023, the right accountant is your shortcut to success.