How to Prepare for Growth by Delegating Financial Operations

Being a small business owner is more than just a job; it embodies years of dreaming, planning, and hard work. It’s estimated that more than 80% of Small Business Owners run their business by themselves, and you’re probably one of those multitaskers. You started a one-person operation and gradually expanded. You wear many hats even now—investor, scheduler, handyman, marketing manager, and bookkeeper. Managing your financial operations is likely one area where you are particularly hands-on because keeping track of cash flow is essential.

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However, trying to do everything yourself and monitoring every aspect of your business by yourself will eventually hinder your business. You might be overwhelmed with paperwork, documentation, tax filings, and unpaid invoices. Understandably, letting go is difficult because of your personal investment in your business. However, we’re here to tell you that delegating is not about losing control. On the contrary, it’s about gaining better control and efficiency. Think of it as switching from a wrench to a power tool - it’s all about working smarter, allowing you to focus more on expanding your products and services instead of spending nights crunching numbers.

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This article will guide you in preparing for growth by delegating your financial operations while ensuring you remain comfortable and confident in the process. You'll also learn about the benefits of outsourcing and practical steps to make this transition smooth and effective.

Four Main Benefits of Delegating Financial Operations

Delegating tasks can mean accessing the latest technologies and experts to make your operations more efficient. It’s entrusting your finances to people who know how to maximize them. Below are the top benefits of delegating financial operations:

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1. Access to Experts: Financial operations service providers specialize in accounting and finance, financial planning, regulatory compliance, and tax reduction. They are certified professionals with access to tools and industry information that help keep your business running smoothly. Hiring them is like hiring an expert to evaluate and future-proof your finances. They understand the intricacies of bookkeeping, know which tax write-offs apply to your business, can identify the issues causing cash shortfalls, and provide strategies to avoid these problems in the future.

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2. Cost Efficiency: Professional financial managers use advanced technologies to automate financial processes, secure your data, and provide real-time information. This means your business benefits from accurate bookkeeping, financial reporting, and efficient accounts payable/receivable management. You also get to avoid the costs of errors, aging invoices, fraud, and financial discrepancies.

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3. Scalability and Flexibility: Although it may have higher upfront costs, one of the best features of delegating is its flexibility. Hiring an in-house finance team involves permanent costs like salaries, benefits, equipment, and regular training. In contrast, outsourcing allows you to pay only for the services you need. You can set specific budgets for peak seasons when you need more support and scale back during slower months. This flexibility makes outsourcing a cost-effective solution tailored to your business's changing needs.

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4. More Time To Focus On Your Business: Imagine having all the time in the world to strategize your business plan! By automating financial transactions and records, you save money and time that can be reinvested into upgrading your website features, equipment, or marketing campaigns. You also eliminate the worry of missing tax deadlines or other regulatory updates, allowing you to pursue new market opportunities confidently.

Identifying the Tasks to Delegate

Not sure which tasks to delegate first? Here are some recurring tasks that are the most cost-efficient to outsource:

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1. Bookkeeping: Data entry, invoice processing, and reconciliations don’t have to be time-consuming and labor-intensive. Bookkeeping services offer real-time reconciliation of transactions, daily expenses, loans, and inventory. They can also provide additional features like financial reporting and invoicing support to help you monitor your cash flow.
2. Payroll Management: Payroll can be complex, especially if you work with independent contractors and freelancers. Payroll support services help you comply with labor and tax laws, and ensure employees are paid accurately and on time.
3. Tax Preparation and Filing: Keeping up with tax codes and requirements can be overwhelming, primarily since they vary by state. A tax service provider can ensure you maximize deductions and stay compliant, helping you avoid expensive audits and fines.
4. Bill Payments: As your business grows, so do the bills. You can avoid paying those overdue fees by partnering with accounts payable service providers who can automate recurring payments and record them in real time, giving you an accurate view of your expenses.

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Choosing the Right People

Now that you’ve identified your delegation tasks, the next crucial step is choosing the right experts for the job. Here are some tips:

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1. Evaluate Their Credentials and Experience: Look for professionals with the required certifications, memberships, and industry experience. Check if they have many small business clients or have worked extensively with service-based companies.
2. Seek Referrals and Reviews: Leverage your network of business owners and ask for recommendations. If you find a service provider website, read the reviews and email previous clients if possible.
3. Interview Potential Partners: Once you’ve shortlisted potential providers, schedule meetings with them and ask questions relevant to your business. Conducting interviews helps you understand their approach and determine if their services align with your specific requirements.
4. Set a trial Period: Consider starting a short-term contract to see if you like working with a service provider. Alternatively, if they have pricing plans, choose a monthly subscription first to get a feel for their customer service.

Ensuring a Smooth Transition and Oversight

Handing over your finances to a new team doesn’t have to be nerve-wracking. You can still control your business’s financial health while partnering with experts. Here are a few tips to make this transition hassle-free:

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1. Communicate Clearly. Outline your expectations and provide all the necessary information to minimize back-and-forths. Clearly explain your business and what you expect from the partnership so the service provider can recommend the best setup and tools.
2. Set Up Systems and Processes: Establish clear procedures for your financial operations, including timelines, reporting formats, and how often you want updates. Specify any preferred integrations with your existing tools.
3. Decide on Performance Metrics: Choose key performance indicators (KPI) to measure the partnership's success precisely. Focus on metrics like accuracy, accountability, and customer support.
4. Regular Check-ins: Schedule regular meetings to discuss progress, new features, and any potential issues.
5. Establish a Feedback Loop: Create a feedback mechanism to help your provider improve their services and make necessary adjustments.

Decimal Makes Delegation a Breeze

Finding the right bookkeeping partner can be a transformative experience At Decimal, we specialize in handling bookkeeping, accounting, bill payments, invoicing, and tax preparation, allowing you the freedom and peace of mind to focus on your growth. Our expert team can analyze your needs to ensure you receive tailored support and effective solutions.

‍Schedule a meeting with us to determine your business's best financial tools and systems.