How does a company organize its financial side of the business? Usually, small companies start by doing it by themselves. But accounting is not an easy task and it becomes very complex in no time. Especially if there are a few projects managed by the same team.
Why does your Company Need an Accountant?
Every small company eventually reaches the point when its employees are no longer able to keep the finances flowing effortlessly. It might be an increased number of employees, an increased number of transactions/expenses, or simply the growth of the company that requires better financial reporting.
At this stage, it is usually time to consider hiring a professional. Whether it’s an in-house employee or an outsourced company, it always makes the life of the company and its owners much easier.
Opting for an outsourced accountant function is usually the best solution for startups. It gives the advantage of having a trusted business partner with broad expertise working with startups and reduces the risks of hiring a full time professional by saving the resources that are vital for the early stage functioning.
What does your Outsourced Accountant Exactly do?
Well, there is a number of tasks. It is easier to explain given a particular example. When we started working with Easy Wedding Georgia – a startup, offering destination wedding planning services for the GCC expats, it was very important to put a proper accounting system in place. The company belongs to the Seolane group, which owns several other projects. When the business started growing it was necessary to separate the on-going transactions of every project to understand their individual financial picture.
Once it was done, the next step was to create a reporting system with profit and loss and balance statements to understand the financial health of the company. Having these statements set and updated regularly gives a great opportunity to control the spendings of the company, to see which business decisions were successful or unprofitable, and to plan the investments accordingly and wisely.
The process is of course more complicated than just that and requires a few more additional steps but after three years of fruitful cooperation, the Easy Wedding Georgia company is up and running quite successfully.
Are you an accounting pro? Or would you rather let someone else work with numbers? Share the article and let us know in the comments.