Running your own business is a full-time job, and sometimes it can feel like you are doing the work of more than one person, especially when you are just starting out. If numbers and finances are not your strong point, and they aren’t for everyone, then as your business grows, you may find that you are beginning to lose grasp of your finances.
The running of a successful business relies on accurate accounts. You need to be able to clearly see where you are making money and where you are losing money to make the best decisions for the success of your business. If you lose sight of your accounting, then your business will suffer. Here are four signs you should look out for which may indicate that you need some outside help with your business accounts before it affects your business too much.
Despite high sales figures, you are not seeing much profit
While your products or service may be in high demand and you seem to be making a good amount of sales, if you are not seeing that translate into profits then there could be an issue somewhere else in your accounting. It can be hard sometimes to see the wood for the trees but independent Xero support personnel are trained to properly examine business accounts and a fresh pair of eyes may see an area where you are losing money that may account for the disparity between sales and profit.
Your business is not being run effectively
You cannot focus on more than one task at a time, and if you are struggling with your accounts then your focus is not on running your business properly. If you find that you are missing meetings, not calling contacts back or your business is taking a downturn because your attention is being taken up with your accounting then it is time to outsource. Leave it to the experts while you focus on running your business.
Suppliers always on the phone
If your stack of bills is creeping up and your phone never stops ringing, it might be time to outsource your business accounts. Ensuring that suppliers and debtors are paid on time is essential in order to get a clear picture of your finances, and by outsourcing your accounts, you can ensure that happens without you needing to be on top of it all of the time.
Business is booming
If you have never managed accounts before and your business is growing and expanding, then you may want to consider outsourcing your accounting early before you encounter any problems. Xero experts can help to advise you on how best to keep on top of your accounts as well as setting up plans and systems in place to run efficiently once you take over your business accounting again. Predicting potential accounting problems and heading them off at the pass ensures that the growth of your business will go smoothly and successfully.