18 Red Flags that Indicate your Business Needs Third-Party Accounting Help Immediately!

​How is your accounting going?
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Is your accountant or accounting team keeping up with the latest changes that could affect your operations? Are they utilizing all of the most effective accounting best practices? Are they proactive or reactive in their efforts? Do they provide the kind of visibility into the company’s finances that leadership needs to make strategic decisions?

​A businessman at his desk with his head covered by a laptop holding up a flag that reads “Help!”

What about your accounting platform? Is it keeping pace with business needs? Does it provide the kind of functionality that your business needs to take that next step (whatever it may be)? Does it offer sufficient automation to streamline human efforts?
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The reality is that the companies that need accounting help the most typically aren’t even aware that they need help. If you’re not sure how your accounting staff and systems are working together to deliver on key accounting functions, here are some red flags to keep an eye out for: 

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• Key deadlines are being missed.
• Staff are not doing consistent reporting and reconciliations due to lack of time.
• Surprise cash flow shortfalls are occurring.
• Revenue is not being booked correctly for more complex items, leading to revenue recognition problems.
• Expenses regularly need to be reclassified.
• The company is being audited due to past mistakes or missing financial information.
• There are skill gaps among existing accounting personnel that hurt efficiency and/or output.
• Accountants do not communicate well regarding their roles and related deliverables.
• There is a lack of proactive planning on the part of accounting and finance staff. Instead, they focus primarily on reactive efforts.
• Accounting staff are burnt out, resulting in poor job satisfaction and high employee turnover.
• Leadership has obscured visibility into financials.
• Accounting staff are unwilling or unable to answer specific financial questions from leadership with clarity.
• There is no one to oversee the accounting team and provide overarching guidance.
• In lieu of a CFO, the CEO does not have a controller or senior finance manager on the next rung down to act as a sounding board during strategy discussions.
• There is no centralized accounting platform. Instead, financial information is spread across multiple systems and programs.
• There is a mismatch between business needs and accounting platform functionality.
• It is clear a more robust accounting system is needed, but no one knows where to start to evaluate the possible options.
• There is no one to oversee an accounting system migration when a new platform is selected.

If you notice any of these red flags, it’s time to give us a call at (800) 931-6557 or email us to find out how we can help!

When your organization needs outsourced accounting services, look no further! We offer third-party bookkeeping and accounting services to companies and nonprofits that need extra help. Our team of experienced accountants can do virtual, on-site, or hybrid engagements to give you exactly what you need when you need it. Whether it’s reporting, accountant coaching, better cash management, tax filing, or accounting process consulting, we can come alongside your organization in any way that it needs accounting help.