You look up bleary-eyed from your computer and realize it’s nighttime already. While you have been lost in evaluating your small business accounting, time has slipped right on by you, and you’ve logged yet another fourteen-hour workday. Doing all the financial tasks yourself might have been a necessity when you first launched your business, or perhaps it was just a practical, money-saving idea. However, your business is growing, and with it, so are the demands on your time.

As you shut down the computer for the night, you wonder if you and your business might be ready for a change. Do you and your current team of employees have the time and skills to handle your own accounting, or might you be better off hiring an experienced accounting firm to help your company reach the next level?


Small Business Accounting is More Than Just Bookkeeping

Keeping accurate records of accounts receivable, bank and credit card statements, and the cash flow in and out are among many vital bookkeeping tasks. A dependable bookkeeper utilizes organized systems for recording and reporting all of the company’s financial data, down to the last penny so that you, the business owner, know where you stand financially at all times. It’s reassuring to know you’re in the black after the bills have been paid, but small business accounting must go beyond this for growth. 

An accountant is a financial analyst, looking for patterns in spending and earnings, effectiveness in management systems, and trends illuminated by the bookkeeping data. 

  • Can you afford to hire another worker right now?
  • How much have profits increased since last year?
  • Are there adequate funds to purchase new equipment?
  • Are the company’s financial obligations being met in the most cost-effective and efficient way?
  • What is the most advantageous way to utilize the increasing capital your business is generating?

These are some of the questions an accountant asks. To evaluate these financial questions and find optimal answers, you’ll need a clear-headed and objective perspective, as well as a savvy understanding of business financial principles. If you’re trying to make these evaluations on your own while also handling all of the other aspects of your business, fourteen-hour workdays will become the rule, not an exception. As an entrepreneur and business owner, your company is likely to be better served by your visionary and management talents. 


How to Change Your Small Business Accounting Practices as You Grow

Make Your Business a Well-oiled Machine

It’s an encouraging sign of small business growth when the time comes to hire new employees and delegate the tasks you once handled yourself. The leap can feel frightening, but you can prepare for this and ease your mind by establishing effective systems and clearly communicating them. Develop and distribute a process manual and expect the established procedures to be utilized by all employees. This will smooth the way for your small business accounting to support the development of your company. 

If you’re already operating from a standardized system, evaluate those processes and determine if they are still effective in meeting your current and impending accounting needs. Are there data gaps, payment backlogs, or inconsistencies to rectify? Address these now and tweak the operations to prevent these errors from happening again.

Whether you or someone else is in charge of finances, see to it that all involved parties are well-equipped for all of the tasks involved. Provide support resources for the bookkeeper, and consider if it may be time to hire an assistant. If you invest in accounting software, also provide training for those who will use it. Shortening the learning curve and reducing the likelihood of errors in this way will pay rich dividends. 

A growth mindset that enables one to learn, adapt to change, and envision the future is vital to the progress of your business. When it comes to finances, begin thinking like an investor. What financial decisions can I make now that will prove profitable in one year, five years, or ten years down the road? It’s natural to guard the company’s finances carefully as you’re seeking to keep your business in the black, and you’re right to do so. However, business growth comes with the willingness to think long-term and take some strategic risks.


When is it Time to Seek a CPA? 

If you’re finding yourself pulled away from the day-to-day operations of your business because you have bills to pay, invoices to send, and records to update, it’s time to rethink your bookkeeping and accounting practices.

If you find yourself anxious and overwhelmed with the tasks of reconciling accounts and keeping up with the flow of data, consider hiring an outside expert to provide you with an honest assessment of your accounts and practices and to help you develop proactive strategies to move your company toward your financial goals.

If accounting has become the anchor that is holding your company back from reaching the next level, let today be the day you change that.

At Hayes and Associates, our dedicated team of certified public accountants is committed to your business’s success. We know finances, understand the unique features of small business accounting, and offer a wide variety of services that can enhance your company. We’d love to learn more about your business and grow with you. Give us a call today.