Full disclaimer: Until recently when I joined Intuit®, I worked for a top 50 accounting firm. So, I believe in the power, experience, and expertise a firm can offer a business.
You might think I’m talking about big businesses, but I’m not. The services an accounting firm provides aren’t just great for Fortune 1000 companies; they're great for small- and medium-sized businesses as well.
Accounting firms can be a great trusted partner and advisor. They can offer a suite of valuable services—some you may not even realize you need today. Here are 5 reasons small businesses should consider them.
1. Get the best service from entry to exit
Really, no company is too small to use the services of an accounting firm. Unfortunately, most companies seek out the help and advice of a firm when they are already behind the eight ball. They’re getting overwhelmed and looking for solutions. They needed help yesterday!
It’s never too late to turn things around, but getting set up correctly early on can save you a lot of time, hassle, and money. Ironically, a lot of small companies put off using a firm, thinking it’s too expensive and the delay ends up costing them more in the long run in penalties, interest, employee expenses, and more.
Even if you don't need a full suite of services, a firm can help you make the right decisions from the get-go. And they are willing to work with you because they know you’re going to grow, so establishing that relationship now will benefit you both when you need more services in the future.
Firms can be there for you at every stage of your business lifecycle. In the beginning, you need basic structure, tax help, setting up software, building a chart of accounts, and even help picking a banker, insurance agent, or attorney. Then, you need assistance with budgeting, forecasting, and modeling. Later, maybe you have a restructuring. Maybe you acquire another company. Maybe you take on investors, which requires heavy reporting duties. If you get an influx of cash from venture capital funding, an accounting firm can help you staff up in days and hit the ground running, showing your investors they were right to take a bet on you.
A firm can be with you all the way from entry to exit. Yes, you should have an exit strategy, even if you just opened your doors. It could be a buyout, IPO, retirement, or handing off your business to the next generation of your family. Whatever form your exit takes, a firm can help you create the vision from the start and ensure a smooth transition when the time arrives.
2. Flexible staffing is successful staffing
Another big advantage of hiring a firm is that you’ll have access to the staffing you need when you need it. You’ll essentially get a full-service team at your disposal who can give you the skills you need at different times, so you don’t have to hire.
Maybe you need an accounts payable/receivable clerk, but only for 20 hours a week, or you need help reconciling the accounts at month-end, but that work will only take five hours at the end of the month. Or maybe you need someone at a more strategic level, helping you understand the data to determine if buying a company is a good investment, or projecting the impact of adding a service line. You won't find someone at the controller level who wants to do all that lower-level work. They've grown past that. At the same time, you're not going to find a staff accountant who can do the high-level work.
You could end up in a situation where you're over-hiring, and paying for full-time staff who aren’t busy or underutilized, and maybe looking for their next opportunity. Outsourcing to an accounting firm allows you to create a fractional setup, and meet your needs without having to hire multiple people and carry that headcount. They operate as an extension of your team, where you pay for only what you need.
Maybe you even want a part-time CFO. A firm can provide that, giving you someone who can strategically talk through the deals you might be looking at, analyze your financial situation and the industry landscape, and help you set the right course for your business.
3. They can help you choose the right technology and set you up for success
Successfully scaling your business requires building interconnected technology. For example, is your accounting software connected to your point of sale system, time tracking system, and payroll? Is it all integrated and working seamlessly, or is someone manually entering all this information so you see where you stand a month later?
The world moves so fast these days. Technology gives you the opportunity to do almost anything in real time. Having access to data and understanding it, digesting it, and making it part of all your decision-making, is a necessity in today’s marketplace. It can give you a competitive advantage. But if your information is flawed or delivered too late, it won’t be useful.
An accounting firm can ensure you have all the right technology, ensure it's set up properly, and working together correctly. The firm can train your team to work with it, help you optimize the power of your technology so that it’s working as efficiently as possible, and get you the data for decision-making at your fingertips.
4. They handle the backend so you can focus on what you do best
An accounting firm can handle all your back office and accounting needs so you can focus on running your business. Think of a world where you don’t have to worry about that part of your business. How much is that worth to you? More importantly, what else could you be doing if you didn’t have to invest your time and energy on accounting and back-office tasks? A firm can handle all that so you can focus on what you do best—growing your business, increasing profits, serving your customers, and building your legacy.
Hiring an accounting firm lets you get out of the day-to-day so you can start working on the business instead of in the business. Once you’re out of the weeds, and not worried about the bills being paid or whether you have positive cash flow, you can lift your head up, see the bigger picture, and start to make the good strategic choices that will move your company forward. Aligning with your firm on your priorities gives you peace of mind that they can execute your wishes more efficiently.
Most people don’t start a business because they want to do accounting. They had a dream, an idea, or a vision. All too often, they get bogged down in the financials because when it comes to paying their employees or paying vendors on time, their character is on the line. But there’s no point focusing on accounting if it’s not your strong suit. You can offload it to a quality firm and rest easy at night.
5. It doesn’t necessarily cost as much as you think
Many small business owners wouldn’t argue the value that an accounting firm can bring, but they worry about the cost.
A firm does cost something, but maybe not as much as you think. And the cost of not enlisting the services of a specialized team from the get-go can be even higher. If mistakes were made, any new accounting firm you hire is going to have to charge you to clean them up. I don’t know about you, but if I’m going to spend my money, I want to spend it the right way the first time.
Even if the prospect of hiring a firm sounds outlandish to you, it’s worth talking to a few to see what they have to offer. They have packages that can meet you where you’re at so you only pay for what you need. Then you can add on as you grow. They can offer a skillset at a variety of different levels to help you get where you want to be. Accountants are typically passionate about helping you succeed. They enjoy being on the growth journey with you.
In addition to considering the cost, it’s important to consider the benefits. Where are you going to be in five years if you join forces with an accounting firm? Where will you be if you don’t?
Most founders start businesses to grow. But to do that, you have to select the right tools and partnerships. An accounting firm is an impactful partnership that will reap rewards for years to come.
Ultimately, the job of any accounting firm is to meet the business owners where they are and help them succeed. They’re going to be your trusted advisor, support you, listen, learn, and hopefully provide the guidance that leads to the best decisions for your company now and in the years to come. Accounting firms have a deeper bench and more tools in their toolbox to do that successfully, no matter how big you grow or what comes your way. Don’t delay in exploring how an accounting firm can help you accomplish your goals.
Editor's note: If you are not working with an accountant, you can find one easily and quickly on Intuit's Find-a-ProAdvisor. Check it out today.
