Is the right person safeguarding your numbers?

In many small to mid-size businesses, the answer is no.

That’s often because they don’t have a huge accounting and finance department. Which means the important role of accounting lands in the lap of the wrong person – like the already overwhelmed business owner.

That’s not to say that you as the owner should ever be in the dark when it comes to your accounting. You need to have an understanding of accounting fundamentals to:

  • Participate in the building of your business
  • Monitor the financial health of your business
  • Communicate with your advisors, vendors and bankers
  • Better understand and communicate the needs of your business
  • Know which metrics and KPIs are important to watch in your business

But you already have a lot on your plate without doing the hands-on role of accounting for your business, so who do you need to help you?

Two of the most common are bookkeepers or staff/senior accountants. Here is how they differ (and why it’s important).

A great way to get your foundational management in hand is to hire a bookkeeper. They are typically tasked with recording your business transactions such as invoicing customers, entering vendor invoices, and recording cash received from customers to name a few.

While a bookkeeper can help tackle your financial data entry functions, they don’t necessarily have the knowledge to know how transactions should be recorded.

That’s where a staff or senior accountant can help. They provide a certain level of thought and expertise as to how your transactions are recorded. For example, your car loan needs to be set up on your balance sheet as a liability to the lender that you’re paying. The entire amount does not show up as an expense on your P&L, because proper accounting reflects it as a reduction of the amount owed to the bank.

I’ve talked before about how accounting practices impact the value of your business so it’s critical that whoever you hire has a good understanding of them.

If you don’t want to go through the process of hiring an employee, you can easily outsource your accounting services. Outsourcing is a cost-effective way to hire experts who can hit the ground running.

TurboExecs offers a range of accounting services that provide you with calm, confidence and clarity to help you move steadily toward your business goals.

Get in touch today and let us take the hands-on piece of accounting off your plate.

 

Your CPA Shouldn’t Be Your CFO!

Put your name and best email address into the form below, and I'll send you “Why You Aren’t Growing Your Business: 5 Reasons Why Your CPA Shouldn’t Be Your CFO” absolutely free.

You have Successfully Subscribed!