When the pandemic hit, it impacted companies in a big way. With small and large organizations forced to close their doors, business suffered for many leaders around the globe. Between transitioning entire teams to remote work and cash flow issues that many weren’t prepared for, it has been a challenging time for entrepreneurs, leaders, and company owners. Pandemic or not, cash flow issues are more than just a headache. It’s a make or break for your business. The good news is that there are things that companies can do to manage these problems. Here is how integrating an outsourced accounting team into your business can actually help improve your cash flow and get your company back on track.
When you hire an outsourced team to handle your accounting responsibilities, you gain an incredible amount of experience, expertise, and specialized background that can work in great ways for your company. An outsourced accountant can help you recognize areas where cash flow can be reduced such as hiring freezes, travel limitations, and spending cuts. Your outsourced accountant can help you identify ways to avoid layoffs such as asking employees to take unpaid leave or cut their hours. A quality outsourced firm works with all types of companies like yours and they can help you dig deeper to make the necessary adjustments that your company needs to stay afloat.
There is nothing surface level about the way an outsourced accounting firm works. It’s their business to delve into your finances and uncover the good and the bad so that your company is positioned for growth and success. They can help evaluate how long it usually takes your company to receive a payment and what length of time is normal for your company to pay an invoice. They can look at your inventory turnover to see how long it usually takes your business to sell what it has on hand. When you understand your company’s key performance indicators that are related to cash flow, you will better understand what your company needs to move into the future.
Assistance with resources
The pandemic in particular brought extra cash flow issues to the table, and many companies sought out assistance from various emergency funding programs designed to provide relief to companies struggling with the crisis brought on by COVID-19. An outsourced accounting firm is able to help you understand the various types of assistance available, what they mean for your cash flow, and how any consequences or negative aspects might affect your company down the road. Whether you just don’t have the time to dedicate to the research or if you don’t feel completely comfortable making those decisions on your own because it’s out of your area of expertise, an outsourced accountant can be that partner that you need to help lead the way.
While focusing on future goals and the big picture of your organization’s performance is inherent to success, the details still matter, especially when it comes to cash conversion. An outsourced accounting team can help to ensure that everything about your invoice and billing process is running smoothly and working to your advantage. They can help send accurate and prompt bills, improve your collection practices, and make sure that customers who are delaying their payments are contacted in a timely manner. Outsourced accounting can help turn those receivables into cash as quickly as possible so that you get what you need to keep your business moving forward.
Cash flow is the fuel that keeps your business running smoothly and when that’s in jeopardy, it can be a stressful and overwhelming task to manage your finances in an innovative and smart way that keeps your company afloat. While there are many benefits to hiring an outsourced accounting firm, improving cash flow is one that many business owners are focused on right now. An outsourced accountant helps you make those decisions that you’ve been putting off in order to help you get your business back on track and on its way to a bright and profitable future.
Myers CPA acts as a fractional CFO/outsourced accounting firm, so you can focus on your business, while we focus on the finances.