Signs You Have Outgrown Your Bookkeeper

Feb 1, 2024

Signs You Have Outgrown Your Bookkeeper

Bookkeepers play a vital role in managing financial records for small businesses. However, as a business undergoes development and growth, its financial needs may surpass the capabilities of a bookkeeper. Depending solely on a bookkeeper may become insufficient during these stages of growth. It becomes imperative for the business’ success to adapt to its evolving financial needs. But how does a business owner know when it is time to make these changes? The key is recognizing the signs that indicate the business has outgrown its existing bookkeeping setup.

Here are four signs your business has outgrown its bookkeeper:

You Are Too Involved in Bookkeeping

Business owners should be focusing on growing their business, not closing their books. An owner that is heavily involved in the day-to-day bookkeeping tasks is a clear indicator that the business may have outgrown its bookkeeper. It is natural for owners to be hands-on in the beginning. However, ongoing heavy involvement can become a bottleneck as the business expands. Business owners are most effective when they focus on strategic decisions, driving growth, and enhancing core business aspects.

Technological Adaptation is Limited

Leveraging advanced accounting software and integrating financial systems with other tools is essential for efficient financial management. A business’ bookkeeper must keep up with these advancements and improve their knowledge continuously. Without this development and knowledge in technology, there is a misalignment with the evolving needs of your business. Ultimately, a clear indicator that you have outgrown your bookkeeper.

Lacking Internal Controls

At times, a business’ ‘bookkeeping department’ includes one person performing multiple tasks. Internal controls are essential for detecting and preventing errors in financial processes. As a business expands, the volume and complexity of financial transactions grows. Without proper internal controls, including segregation of duties, risk of errors in record-keeping, reconciliation, and financial reporting increases. Lacking internal controls may be another sign you have outgrown your bookkeeper.

Your Business is Too Complex

As your business grows, its financial needs often become more complex. This is where strategic planning comes into play. Strategic planning involves forward-thinking, which focuses on forecasting and anticipating future goals. A bookkeeper’s role should evolve with the company. However, if your bookkeeper’s primary focus is on routine tasks and does not actively participate in the planning, this is a clear indicator you have outgrown your bookkeeper.

Recognizing the signs that your business has outgrown its bookkeeper is not an indication of failure. It presents you with an opportunity for strategic enhancement. At Cheryl Jefferson & Associates, we focus on accounting and forward-thinking development for small businesses.

Contributed by Elizabeth Partlow

Debunking Myths: Why Not Outsourcing Your Accounting Is a Missed Opportunity

Oct 17, 2023

Debunking Myths: Why Not Outsourcing Your Accounting Is a Missed Opportunity

As businesses evolve, the complexities of handling financials internally can become overwhelming. Despite the apparent advantages of outsourcing your accounting, many decision-makers hesitate due to certain prevailing misconceptions. Let’s dive into these misconceptions and shed some light on the realities.

Debunking Common Misconceptions About Outsourcing Accounting

1. “I’d be relinquishing control over my finances.”

Fear of losing control: The thought is that by outsourcing, one might be handing over too much power and could be kept in the dark about their own finances.

Reality Check: Outsourcing is about collaboration. You’re delegating tasks, but you remain in the driver’s seat, making informed decisions. You’re merely lightening your workload, not surrendering control.

2. “What if they mess up.”

Concern over reliability: There’s a belief that an external team might make mistakes, leaving the primary business responsible for cleaning up.

Reality Check: Established accounting firms prioritize precision and reliability. Their reputation hinges on delivering quality work.

3. “Outsourcing seems cost prohibitive.”

Misconception about cost: The presumption is that outsourcing accounting will cost an arm and a leg.

Reality Check: While there’s a cost involved, the potential returns in terms of time efficiency, error reduction, and insightful expertise are substantial.

4. “External parties might breach our confidentiality.”

Concerns over privacy: Some business leaders fear sharing sensitive financial data with external entities.

Reality Check: Any reputable accounting firm has stringent confidentiality policies in place. They’re committed to safeguarding client information.

Wrapping Up the Discussion

Having dissected these common reasons for not outsourcing your accounting functions, it becomes evident that many of these concerns might be unfounded. Embracing external expertise can pave the way for more streamlined operations and informed financial decision-making.

Looking to shift your focus to growing the business? Virtual CFO provides GovCon-centric strategic accounting for small businesses providing services in technology, architecture, engineering, aerospace, and project management industries.  

We know your pain points – let us help you relieve them – schedule a consult. 

Cash Management

Sep 5, 2023

Cash Management

As a business owner, you truly have an understanding of the saying ‘cash is king.’ Cash is the lifeline of any business. It is a vital component, ultimately impacting a business’s financial stability and success. Without it, your business cannot survive. Although, running a small business comes with a myriad of challenges. One of the most critical aspects that can significantly impact its success is its cash management.

What is Cash Management

Cash management in layman’s terms is how a business manages its cash flow. It is the process of monitoring, optimizing, and controlling the cash within your business. Its goal is to ensure a business has the right amount of cash on hand to cover its operational expenses and to optimize growth opportunities. Effective cash management is like the beating heart of a business. It makes sure the business is not only running smoothly but thriving as well. Without a proper system in place, a business may find itself in a dire situation.

Why Cash Management is Important

Proper cash management is the foundation for a small business’s financial health and growth. There are many reasons it holds immense importance for businesses. First, it helps to create financial stability. It safeguards your business against unexpected expenses and events, like economic downturns. With a financial safety net, your business is better prepared to weather challenges. Also, it helps to seize growth opportunities. Having cash on hand helps businesses make strategic decisions. Lastly, it aids in the process of decision making. Informed decisions rely on accurate financial data. It provides the data you need to make strategic choices for your business.

How a Virtual CFO Can Help

Virtual CFO’s expertise allows them to wear many different ‘hats.’ They play an essential role in helping businesses manage their cash. A virtual CFO provides valuable insight for cash management in many ways. For example, virtual CFOs analyze your business’s historical cash flow data and uses it to create accurate cash flow forecasts. This helps a business prepare for the many financial challenges. A virtual CFO can provide regular financial reports and analysis. This allows a business to monitor its cash position which helps to make better decisions and adjust strategies if needed.

Cash management can be one of the most challenging aspects of a business but it is fundamental to the overall success of your business. While it may not be everyone’s forte, it is ours. Let the CJA team help you with your cash management needs!

Contributed by Elizabeth Partlow

Signs Your Business Needs Virtual CFO Services

Jul 3, 2023

Signs Your Business Needs Virtual CFO Services

Over the past few years, you remember hearing about virtual CFOs and the services they provide. Initially, you thought to yourself, ‘my business is chugging along just fine without a virtual CFO.’ Fast forward a few years, and now you are wondering if a virtual CFO would add value to your business. You are more familiar now with their services and how they benefit businesses. But you keep contemplating when the right time is to seek out virtual CFO services. There are a few common signs that indicate to business owners that they need virtual CFO services.

You spend too much time working for your business rather than running it

Mornings are spent working on bid and proposals, afternoons running the business’ operations, and evenings transforming into a bookkeeper. You are only one person, and there are not enough hours in the day to get everything done. If this scenario seems all too familiar, then it is time to look into outsourcing some of your responsibilities. A virtual CFO can take many responsibilities off your plate. Ultimately, freeing up time for you to focus on more important things; like growing your business.

You are looking to grow your business

Growth is a key component to the success of a business. Without it, your business will become stagnant, or even worse, may experience decline. As important as growth is, you may be unsure how to facilitate this. This is where a virtual CFO comes into play. Virtual CFOs specialize in areas like strategic planning, cash flow management and forecasting. A virtual CFO can use these specialties to not only develop goals, but to help you achieve them as well.

You need improved financial reporting

As a business owner, you wear many hats, and are often spread thin. You notice this to be true by the errors you find in your books. The first time there was one error, the second three, and so on. Whether you are the one preparing the books, or you have an in-house bookkeeping team that has reached its capacity. These errors have a negative effect on your business. In fact, having accurate books is essential to the success of your business. A virtual CFO can transform your financial reporting. Streamlining financial processes, analyzing reports, and developing strategies are just a few things a virtual CFO can do to help improve your financial reporting.

You lack the budget for a full-time employee

You wake up one morning and realize you are in over your head, and you need financial assistance. But you know you don’t have the budget for a full-time employee. How can you get the help you need, within your budget? A virtual CFO is a budget friendly solution. They can tailor their services to your needs and budget. As your needs change, so can their services.

Now a days, virtual CFOs are a top commodity. They provide many benefits for a business. But how do you know if your business needs a virtual CFO? There are common signs that your business needs a virtual CFO. Our team specializes in virtual CFO services and is here to help!

Contributed by Elizabeth Partlow

Benefits of a Virtual CFO

Oct 3, 2022

Benefits of a Virtual CFO

Gone are the days where large businesses, with what seems like infinite funds, are the only ones needing CFOs. Most businesses, regardless of size, can benefit from the expertise of a CFO. They can guide and steer your business in the right direction. With today’s technological advances, you can even reap the benefits of a CFO in a virtual capacity. You may be thinking to yourself ‘is a virtual CFO even worth it?’ Virtual CFOs provide many benefits a traditional CFO does, at a fraction of the cost.

Cost Savings

Virtual CFOs provide your business with all the great benefits of an in-house CFO. However, you are not liable for the financial burden of hiring a full-time employee. In-house CFO’s expect higher salaries, bonuses, and other amazing benefits; rightfully so. When hiring a virtual CFO, many of these expenses do not exist for your business. You pay for the services you desire, which ultimately reduces your business’ costs.

Flexibility

Businesses are like snowflakes. They may look similar, but no two businesses are the same. Virtual CFOs allow you to tailor the conditions of their services to meet your business’ needs. Currently, you may have the need for a full-time CFO, but six months from now that need may decrease. While a virtual CFO deals with the financial side of your business, you will have more time to focus on what you do best.

Expertise

CFOs are subject matter experts (SME) responsible for managing business’ financial operations and strategy. With a virtual CFO you get access to a team of experts versus one expert. Having a team working for your business provides a vast amount of knowledge, to meet your business’ needs. The resources a team will provide are something an in-house CFO does not have. Also, a traditional CFO usually has experience working for one or two industries. However, a virtual CFO has experience working with multiple industries.

Growth

Virtual CFOs possess skills and expertise to foresee your business’ woes. This allows them to assist in your business’ financial affairs. Providing financial advice in areas like strategic planning, forecasting, and cash flow management to help your business grow. A virtual CFO ultimately can provide a roadmap for growth. This roadmap not only delivers your business’ goals, but also focuses on how to achieve these goals.

There are many benefits of a virtual CFO. They reduce costs, provide flexibility and expertise, and promote growth. Our team specializes in these services and would love to discuss your needs.

Contributed by Elizabeth Partlow

5 Reasons to Outsource Your Accounting

Jul 5, 2022

5 Reasons to Outsource Your Accounting

As a business owner, working long hours is something you are all too familiar with. You are responsible for managing the day-to-day activities, while simultaneously growing your business. You feel there are just not enough hours in the day to complete your ‘to do list.’ Often wishing for a solution where you can do it all. The great thing is, there is a way to accomplish this. When you outsource you accounting services, you ease the stressors of ‘doing it all.’ Plus, your dream is to be a business owner, not an accountant.

The thought of outsourcing any business process may have your ‘wheels spinning.’ How can this help to solve your problems? Outsourcing provides many benefits, ultimately aiding in the success of your business.

Cost Savings

Having an inhouse accountant, bookkeeper, or even an accounting team is a significant expense to your business. You are responsible not only for an employee’s pay, but also everything that goes along with it. This includes things like payroll taxes, paid time off, and other benefits. When outsourcing accounting services, you are paying only for the services you desire. It reduces your business’ costs and helps to increase its profitability.

Expertise

Accountants specialize it just that, accounting. When you outsource accounting, you get access to a team of experts. We constantly are improving our skills and keeping up with the industry standards. Understanding the ever-changing laws and regulations to help keep you compliant. Having the right team of experts is vital to the success of your business. Outsourcing also allows you to tailor your accounting services to your needs.

Focus on Growing

Business owners get caught up in the daily minutia of a business, rather than growing it. When you outsource accounting though, this changes. The time you desperately were looking for, now exists. This gives you and your team the opportunity to focus on setting and achieving goals. As this occurs, you have continuous access to an accounting team. Giving you the ability to expand your accounting services as your business grows.

Minimize Time and Resources for Recruiting

Recruiting is a time-consuming task. You spend countless hours going through the process of creating a job post, reviewing resumes, and performing interviews. Only to risk being left with mediocre candidates, or someone who lasts for six months. Then the long and exhausting process starts all over. Outsourcing your accounting eliminates the expense and tedious process of trying to find the perfect candidate.

Smarter Business Decisions

Outsourcing accounting services provides a fresh outlook on your financial data. This gives you an opportunity to finally have a proactive business strategy, versus a reactive one. Analyzing your business’ financial information from a bird’s eye view allows accountants to evaluate the financial health of your company. They can provide you with impartial advice, which can help you achieve your business’ goals.

There are many benefits to outsourcing your accounting services. It reduces costs, provides expertise, promotes growth, and much more. Our team knows your pain points as a business owner and is here to help!

Contributed by Elizabeth Partlow