When you hear the term “competitive advantage” you may think of a company with a defensible market position, superior product, lowest price, and extraordinary customer services. The truth is, however, there are many sources of a competitive advantage within an unexpected area: your accounting department.
In 2020, change is constant. Markets are facing highly competitive scenarios, new technologies, and changing consumer habits. Organizations that survive and prosper will be prepared to face the most difficult situations, and it is essential to measure the current performance through your accounting function in order to drive business to the next level. Having a sound accounting function is a great source of quantitative information that can allow your company to gain a competitive advantage.
The Right Information At the Right Time
The financial statements your accountant or financial controller can provide has extremely valuable information to company decision makers. Almost any decision you are considering for your business can be guided with the right collection of financial reports. If you are looking to acquire a new piece of equipment, reports present comparisons of generated income to the monthly payment that reveal whether you can afford the purchase, and where the break-even point is. If your considering adding a service to your business, your accountant can generate reports to expose whether the addition will be profitable, or ultimately a burden on your resources.
An Objective Evaluation of Your Finances
The ability to provide higher quality accounting information faster, more efficiently and with greater effectiveness is crucial. Working with accounting professionals will yield more reliable information to make improved business decisions in less time. You will not need to spend time and money trying to keep up with an avalanche of new laws, policies, procedures, and technologies. Missing critical business signals because you are not able to access the financial information in the form you need it, when you need it, will put you at a distinct disadvantage in today’s hyper-competitive environment.
Improving Cash Flow
Managing cash flow is a vital part of business that is often overlooked by startups. A business can run into trouble quickly if it does not have ready cash to spend, no matter how profitable it is on paper. A good accountant will ensure that your cash flow is strong enough to guard you against risks, while increasing confidence among your investors and stakeholders.
Build Your Core Business
Once your business really takes off, you’ll need all your time to run day-to-day operations, rather than be occupied with the finances. Similarly, as the business finances become more complex, you’ll almost certainly need a specialist to take charge of them. Taking a step back from the day-to-day operations and building on your core business can create a competitive advantage for your business.
Breathe Easier in Times of Crisis
There will always be external factors beyond your control that might negatively impact your business. As we’ve seen in 2020 alone, financial downturns, natural disasters, global pandemics – could all affect your business, even all at once. Having the rock-solid support of a financial accounting team is never more important than in times of crisis. It will enable you to have clear visibility into your company, and make better decisions compared to your competition who isn’t prioritizing a strong financial function. This is just another reason why maintaining accurate, up-to-date records is so critical.
Why Outsourced Accounting Services is a Viable Option:
Hiring an outsourced accounting services is often cheaper and more cost effective than hiring in-house staff to handle the finance function. By outsourcing, you don’t have any attributed overhead costs that hiring an employee would generate, such as PTO, health insurance, retirement, vacation, Workers’ Comp, and sick days. Also, the value of having an entire team’s expertise, rather than just one internal person (or more), includes reducing the risk of non-compliance and unreliable financials – especially for smaller businesses starting out.
Additionally, with outsourced accounting services, you have multiple pairs of eyes on your transaction processing and reports, which provides increased internal controls. While fraud can never be ruled out 100%, a dedicated team with specific expertise in accounting best practices will be far more likely to spot an anomaly than one person who’s probably overburdened and overloaded with work.
The Bottom Line:
Outsourced accounting services are a way to get the critical support and guidance of financial experts when you need it. This is especially important as your business scales and evolves, while also navigating through the inevitable ups and downs. With a knowledgeable and reliable team backed by cloud accounting software, you never have to guess about the financial health of your business.
Boost Your Business with Exemplar’s Team of Proactive Accountants
We do more than just push numbers around. We work with our clients to ensure they have a better understanding of what their numbers mean to their business. Exemplar’s team of professional accountants and CPA’s have helped businesses of all sizes gain the peace of mind, efficiency, and actionable financial intelligence they need to succeed. Get a conversation started with out team today to learn how we can help you.