Finance is one of the foundational pillars of any business, and accountants are the critical worker bees that make it possible for companies to balance their books and maintain the cash flows that keep them profitable. And while many entrepreneurs and small business owners tackle their own bookkeeping and accounting in the early stages of business growth, finance professionals are some of the earliest leadership hires they make when growing.
As more and more small businesses spring up in the wake of the COVID-19 pandemic, demand for accounting jobs is also booming. In fact, it’s expected to grow by leaps and bounds over the next decade. It begs many important questions, including when and how to hire one for your own budding venture.
Demand for accounting jobs is growing
The market is experiencing a greater than average need for financial experts. The U.S. Bureau of Labor Statistics predicts demand for accountants will grow by six percent in the coming decade, which would create approximately 139,000 positions for those in the financial field. Financial managers are particularly high in demand with an estimated job growth of 15 percent between now and 2029.
A large portion of that demand stems from small business owners who need help maintaining their financial operations. When businesses first start out, entrepreneurs often find they can handle the bookkeeping on their own. But as your business grows, you likely won’t have the time to crunch numbers and make sure employees get paid. An accountant is better equipped to tackle payroll responsibilities, especially once you add more employees.
In-house vs. outsourced accountants
Small business owners seeking financial support often turn to accounting firms. Outsourcing accountants initially seems like a smart move since owners get the help of experts without having to put them on payroll. But these accountants work for many clients, which means there’s a limit to how much time and energy they can allocate toward your business. Plus, an external team member can’t take on the increased workload that comes with company growth.
Small businesses that experience significant growth benefit from hiring a staff accountant. In-house financial experts can give your business the undivided attention it needs to balance the books and make smart financial decisions. A staff accountant will also have greater knowledge on the inner workings of your business, which better positions them to help you reduce spending, increase revenue and stay within budget.
When to hire financial leadership?
Financial experts can do way more than crunch numbers. Growing businesses have much to gain from bringing financial leaders onto their teams. For instance, a Director of Finance can assess economic trends to help you make wise investment choices. They can also offer guidance on how to expand your company’s market share. Financial leaders possess the level of expertise that’s necessary to continue the upward trajectory of your business.
A small business owner might also consider adding a CFO to their in-house financial team. CFOs serve many vital roles, which includes gathering data to create financial reports. These reports offer valuable insight about how your company performed in the past and where it’s headed in the future. The CFO will highlight the company’s strengths and help uncover financial shortcomings. This information aids in financial planning so your business can stay on the right path.
Is it time to hire an accounting expert?
An accounting expert could be the catalyst for growth in your small business. Accountants handle bookkeeping and other daily operations so you can focus on planning the company’s future. Hiring a financial expert to take care of finances frees up time in your schedule to formulate a strategy for expanding your business. If crunching numbers takes up a huge portion of your day, it’s time to consider adding an accountant to the team.
Financial experts also play a direct role in growing small businesses. Adding a financial leader to your executive team would be the next step forward if you’re looking for ways to maximize profitability and expand your reach in the market. Finances are an essential component to company growth, and if your business has been sitting on a plateau, a financial leader can take it to the next level.
Conclusion
A small business owner can get by just fine when their company is in its infancy. But if company growth is in your future, in-house financial experts are what you need to tap into the business’s full potential. From daily tasks to looking at the big picture, finance professionals have a hand in every successful business expansion.
