Size Doesn’t Matter….
In the world of accounting the size of a company doesn’t matter as no matter how small or how big a company is, a solid accounting foundation is the keystone to supporting a business as it grows and expands. The key is to put in place an accounting foundation for where you are today and that will grow and adapt to the changes in your business.
I know as a business owner you have a lot on your plate, and I imagine you are thinking:
• I don’t have a desire to create an accounting system, I just need to get orders shipped!
• I’m too small to need an accounting foundation – I will deal with it when my company is bigger.
• I can’t afford a fancy business consultant to create an accounting system that will create reports I don’t understand.
• I make widgets – I didn’t start this business to learn accounting.
Look at the example of building your dream house. You have a vision of a house that will have a gourmet kitchen, a beautiful master suite, a fantastic entertainment area in your walkout basement and so much more!
What if you tried to build the house yourself?
• How much time would you spend trying to learn plumbing, electrical, etc?
• How much will it cost to redo the plumbing if designed wrong?
• What if the walls aren’t straight and level?
• What happens if the budget plan was way off?
These questions are why most people hire a general contractor. The contractor is who will take your vision and create a plan so that you have an idea of who, what, when, where and how before the first shovel of dirt is removed. The general contractor will also make sure that the plan goes smoothly, tells you when something in the design needs to be changed, knows the building codes, stays on budget and will even modify design if your vision for the house changes.
All you need to do is focus on your life and pack your bags when your dream house is complete!
In the world of accounting, the CFO/Controller is your general contractor and just like with building a house, this person will work with you to create the blueprint for the business you envision. The CFO/Controller will periodically adjust the blueprint as well as making sure the accounting system is providing the support your business needs to be successful.
What happens if you try to build your business without a General Contractor?
• Sales prices can be based on incorrect cost data and lose money
• Tax payments such as payroll and sales tax might be missed
• Orders shipped but the customers are never invoiced
• Inventory system is setup wrong and you run out of parts and production shuts down
• Your tax bill is high because of faulty data caused by faulty processes
Can you afford to hire a CFO/Controller when on average salaries start at $100,000? Probably not, but you can hire an on-call CFO/Controller who can help you as much or as little as you need, and they will cost far less than a full-time employee. There are plenty of accounting firms that now offer bookkeeping and CFO services together in one package that can be tailored to your needs and budget.
Remember when building a house, the size doesn’t matter as you need a general contractor regardless and the same is true with building a business!
To find out more about how Beyond Accounting can be your general contractor and help you build a strong foundation for your company, give us a call today for a free consultation at 888-893-7593!!
About the author: Nancy Rumfelt, owner of Beyond Accounting has always loved puzzles and mysteries and realized that she also loves helping companies solve their mysteries of what isn’t working and how to find the missing pieces to complete their success puzzle. Along the way Nancy has developed a knack for understanding manufacturing operations and finding solutions that are simple to use and work for companies small or large.