In a day and age that small business trends are always changing, we’re seeing small businesses hire fewer accountants, a position that was always a must for business owners to hire in the past. But why is this the case? Costs certainly do factor into it, but that isn’t the only reason there’s been a shift in hiring.
Many New Small Business Owners Like To Be DIY In Everything
Sself-employed business owners will be comprising over half of the US workforce in just the next five years. While taking the DIY approach in all departments including accounting is not really an efficient way to get things done, it may be difficult for some new entrepreneurs to delegate these tasks. Yet they still often find ways to stay afloat despite the extra work that comes with this.
Small Business Accounting Software Is Out There
Accounting software alone is in high demand, and it goes far beyond Quickbooks. There are software developers that have made cloud-based accounting software available for not only fairly affordable prices or monthly plans, they’ve also made it easy to understand so that you don’t need to get an accounting degree to know how to use it. Some of this software even has payroll and tax services available that can file all the necessary paperwork with the proper authorities, thereby saving even more time when it comes to tax season.
Accounting Can Also Be Outsourced
Sometimes along with the software or as a separate service, accounting firms cater to small businesses and make accounting easier by allowing them to pay flat fees for accounting services. Depending on how comprehensive the services are that an accounting firm offers, it may or may not save money, but since accounting firms are separate companies that business owners don’t have to pay full-time benefits such as 401k, vacation time and insurance, some small business owners prefer to go the outsourced accounting route. In some cases outsourced accounting can be thought of as a virtual accounting department if cloud-based software is being used with live assistants, or if it’s connected with the accounting firm the business hires.
Small Business Owners Want Business Analysts
One trend that’s been growing in the digital age and with a lot of expert marketing gurus out there, is the need for business analysts over accountants as an article at PYMNTS.com states. Analytics is a growing field because it translates data, including financial data into information that business owners find important to growing their business. Some accounting firms have caught onto this and are now including full-scale analytics in their services, and it may be that the lines between accounting and marketing are becoming blurred in this respect. Nonetheless, business owners know they need to adapt their marketing strategies when they find out which areas of their sales are doing well.
Photo: Hamza Butt from Flickr / CC 2.0