Turnover
Turnover is detrimental to an accounting function. Processes get lost. Responsibilities get misplaced. Quality may suffer. You may have to slow down operations until you restock the accounting department. On top of this, turnover can sometimes spread through your organization like a virus!
Timing Delays
If your accounting function is struggling to deliver financial information in a timely manner, or if it is out of breath upon delivery, something may be amiss. Workflows should be in place to allow the accounting function to hum along smoothly. Consistent timing issues may be a symptom of inadequate workflow design that is preventing a smooth flow of information through the accounting function. Timing issues may also indicate that the accounting function is short-staffed or inappropriately staffed.
Outdated Technology
No one wants to spend money on accounting software. However, using an outdated accounting system puts the accounting function at risk. Outdated technology may lack modern features such as cloud functionality, updated security protocols, data analysis, multi-entity collaboration, and the list goes on and on. The older a system is, the higher the risk of operational deficiencies caused by turnover due to it being challenging to find individuals who can operate older systems. Training may not be available for older systems. Additionally, most of your employees are likely familiar with modern sleek applications found on smartphones or on consumer laptops. A clunky antiquated accounting system offers a poor user experience for your employees, thus impacting the likelihood of turnover.
The Scale of Your Business
Your accounting function may be about to break due to your success! Rapid growth, increasing transactional volume, and increased operations can put a strain on even the best accounting department. Many business owners and operators don’t make the investment to build a proper accounting function. Many do it themselves, from their kitchen table or bedroom, sacrificing sleep to record checks and deposits. Many have a spouse or partner who serves as the accounting function. There is nothing wrong with any of these scenarios, but they often reach a point of failure. Failing to put the accounting function in its proper place may result in the faux accountant being distracted from their core responsibilities.
So…Is it Time to Consider an Upgrade?
If any of the situations above sound familiar it may be time to consider building or expanding an accounting function within your organization. This may take the form of hiring your own accounting team or outsourcing all or a portion of the accounting function. Outsourcing the accounting function has become a popular option for many companies as it provides access to professional accounting resources, modern accounting systems, and timely information without the headache of recruiting, training, and retaining accounting personnel internally.
Dean Dorton offers accounting services that can handle your business needs. We have more than 35 professional accountants serving clients across multiple industries including nonprofits, equine, healthcare, family office, and privately held businesses.
Want to learn more about outsourcing your accounting? Contact Dean Dorton today.
