5 Reasons Why Outsourcing Your Accounting Improves Your Vacation
By Paul Johnson
CPA, CGMA, MBA
If you are like many people, this time of year is when winter is dragging on and spring is eagerly anticipated. Maybe you’re already looking ahead to a much needed vacation. Daydreaming of this year’s vacation may look something like this: picturing yourself on the beach, waves crashing in, light breeze, full sun and a beverage in your hand.
Perhaps your vacation takes you to the mountains, desert or favorite large city. Regardless of where it will take you, small business owners often grapple with the same concerns…Who will manage the finances of the business while I am gone? Can I afford to take this time away? How will I know if the business is performing well while I’m gone? Will performance of the employees remain the same without me there? And the list probably goes on!
Get online and book your vacation…you deserve it! Oh yeah, all those concerns you have about leaving the business…Well, they will be significantly reduced thanks to you making the smart decision to outsource your accounting! I know, you’re probably thinking this is quite the stretch of topics to correlate, and no, I haven’t gotten lost in daydreaming about my own vacation! Seriously, regardless of your vacation plans, outsourcing your accounting will improve your vacation thanks to these five reasons:
More Time – Outsourcing your accounting will improve your vacation as it relates to time in a couple of different ways. Initially, not having to complete the accounting tasks will afford you additional time to focus on other areas such as marketing, sales, operations and strategy. Secondly, because the vital accounting function isn’t dependent on you being there, and you have full access to your accounting system and reports, you can spend more time on your vacation while still keeping close tabs on your business!
Improved Revenue – With the increased time discussed above, you are able to spend more time focused on those activities closer to revenue generation. Whether this is through marketing or direct sales communication, or through increased time available to provide services, you are able to attain a higher level of revenue overall. The positive impact improved revenue will have on your vacation is the impact on profitability which is discussed below.
Reduced Costs – Achieving reduced costs through outsourcing your accounting may sound counterintuitive, since you are adding an expense for the service, but it is a likely result and here’s why. As discussed above, you will find you have additional time to spend on other areas of your business. Often this results in taking a closer look at processes, product costs, vendor pricing and other functions. Perhaps you even work with your outsourced team to analyze these areas. When performing these analyses it is common to find areas of cost reduction and improved efficiencies. Consider the reduction of annual software maintenance costs, and the integration possibilities of today’s business solutions and you will find even greater improvements. Reduced costs achieved can have a significant impact on the business profitability as noted below.
Enhanced Visibility – Unless you are a power user of your existing accounting system, it is likely that your monthly reporting (assuming you prepare monthly reports) consists of the ‘out of the box’ reports that were created when you set up the system initially. The ability to keep transaction processing current, as well as collect other metrics important to your business, has significantly improved with today’s software. The monthly reporting available can include much more than just the financial information, which leads to improved visibility into other functions of your business. This improved visibility allows you to make better informed management decisions.
Additionally, with the ability to access your accounting system anytime (internet connection required) you can see how your financial picture develops throughout the month. Better yet, implement a dashboard solution for your business (discussed in a previous post here) and you can have all of your vital information in one place! While on vacation you can easily check in from your mobile device and see how the business is performing (financially and other metrics), thus reducing the stress or concern you may have of not knowing what is going on while you are away. Less concern and stress equals a better vacation!
Greater Profitability – The revenue increases gained from the additional time spent on the business, combined with the reduced costs you have achieved in part due to improved visibility, have led you to greater profits! Greater profitability has improved your personal cash flow, and your level of comfort in stepping away from the business for a much needed vacation. Not only are you more comfortable about leaving the business knowing your financial processes won’t skip a beat, but you now have more cash in your pocket to enjoy the vacation of your dreams!
There you have it. While maybe not one of the main benefits people think of when outsourcing their accounting, improving your vacation should definitely be considered!