Is it time to let someone else manage your Business Accounts?

June 9, 2020

According to Njoroge Kibutu, a financial consultant and CEO of UPO Limited, it really depends on your Organisation. These days there are a couple of software solutions that could help you self-serve with your accounting functions. You have to however make sure this does not affect other important functions of the company such as business development. Accounting is always backward looking, whereby you have to go back and check the receipts and the profit and loss sheets. These roles could easily affect your business growth if you are the one, as an entrepreneur, also leading your business development efforts.

So what then do you do? Hire an in-house accountant or outsource?

You have to consider what comes with a full time or part time employee. The salary, the benefits, the leave days vis a vis the work that they will be doing there. “You have to ask yourself if the work they are doing is sufficient for an 8 to 5 job, or will you soon realise that this person does not have enough work and therefore end up giving them some other roles that they may not be very good at?” says Njoroge. Things get worse if the person also does not know how or isn’t interested in multitasking. In such a case, they end up underperforming in the additional roles you have allocated them.

If the person is a 3rd party consultant, will they have the Organisation’s vision and goals at heart? Or will they be doing your books and just leave? Will they advise you accordingly on what to do at a specific stage of your Organisation to help you achieve your goals? The advantage is that you can negotiate the hours they come in and do your accounts so the expense is reasonable. You won’t have to deal with everything that comes with a full time employee as discussed earlier.

No matter which route you choose, you have to make sure that the person doing your accounts is thorough. They have to be clear with everything. All expenses have to be captured, even the small expenses such as money used on airtime or lunch with clients. All billings have to be done, and done on time as well.

Ultimately, it’s down to you as the business owner to decide when it’s time to let someone else take over your Accounts, as long as it aligns with your business stage and strategic goals.

Njoroge Kibutu was a facilitator at Un.thinkable masterclass (our quarterly 10X Growth Leaders Workshop) in March 2020. Click here to apply for membership in Un.thinkable.

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