If you’re like most small business owners, you probably wear many hats in managing your business. But with business growth and smart management comes change.
If your business has grown, it might be time to consider setting up a separate accounting department to handle your business financial matters.
Does that mean you simply hire a professional accountant or is there more to it than that?
Read on to learn more about what you should consider when setting up an accounting department for your business.
Decide on Chain of Command
As a business owner, especially a small business, you’ve probably been handling much of the accounting work yourself. Ultimately, you as the owner are responsible for the business bottom line.
Yet, as you move forward with an accounting department, you’ll need to hand off some responsibilities to those taking over.
You want to be comfortable that the person who you hand off to has the skills, accounting knowledge, and integrity to handle your business finance.
You probably also want to ensure you have a system for monitoring how the accounting is being handled. What decisions can the accountant department make separate from you? What decisions must they clear with you?
Tasks to Handle
When you hire a skilled accountant, you might be surprised at the number of things they can handle through an integrated accounting department.
Go into the process knowing what you think you want this department to handle. This will likely handle things like:
- Paying bills
- Overseeing payroll
- Managing ledgers and accounts
- Preparation for tax season
A skilled accountant should have some ideas about how to enhance your accounting department. They may even be able to handle more finance-related issues than you can imagine.
How Much Control Do You Want?
Deciding you need and are ready to hand over some big responsibilities for your business can be challenging. If you’ve been handling some or all of these tasks yourself, it can be difficult to cede control to someone else.
When you put an accounting department in-house, you can closely monitor what’s happening there. It can also mean it’s hard to let go and have someone else perform these duties for your business.
Be prepared to address this when you hire for your new accounting department. Be aware, too, of how difficult this will be for you to let go of these responsibilities.
Consider Outsourcing an Accounting Department
Be prepared to think outside the box as you approach this kind of change for your business. Also, consider carefully the cost of creating an in-house accounting department.
Small businesses have tight budgets. Are you prepared for the added expense of adding your own accounting in-house department?
Many small businesses appreciate the benefits of outsourcing these services instead. For many, it’s more cost-effective and also helps you to focus on other matters that need your attention.
Get the Benefits of Your Own Accounting Department
If your business is growing, you need an accounting department to manage your business finances. Be prepared for how to approach adding an accountant and how they can help your business going forward.
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