May 31, 2022

Can Your Business Survive Without An Accountant?

Can You Run a Business Without Accounting?

Accountants help business owners stay on top of their finances and keep their businesses afloat. However, in situations like startups or a business being between full-time accounting employees, an owner may ask themselves if their business can survive without a full-time accountant.

At OSMEAC Solutions, our answer is a resounding “no!”

Accounting presents daily responsibilities and challenges that can spell disaster for any company if ignored (even in the short term).

Let’s look at some of the problems you could face without an accountant and why you should always have a professional on your side to handle your finances.

You Run the Risk of Poor Decision Making

Accountants help you keep tabs on your business’s financial successes and weaknesses. This data is essential for making decisions that impact your company.

From new equipment to adding new services to your roster, analyzing raw accounting data is the difference between a sound decision and a “gut decision.”

Without an accountant in your ring, you could make long-term changes based on incorrect information that puts your business in a terrible financial situation.

Cash Flow Problems Can Quickly Surface

When you don’t have someone dedicated to tracking your business’ daily expenses, it’s easy for cash flow problems to get out of hand. Failing to have an accountant for an extended period of time can lead to:

  • Account overdrafts
  • Extended days payable outstanding periods
  • Lack of available credit
  • Total financial loss

Even if you hire a contractor accountant to review your books once a month, this can ensure you stay on top of your finances and prevent devastating cash flow problems.

Growth Potential is Stunted

If you plan to expand your brand, you’ll need an accountant to review your finances, draw up statements and help you gain the necessary financing for your expansion.

It can be difficult for lending institutions to view you as a viable candidate without audited financial statements. Without an accountant, it’s difficult to prove your business’s financial health. Unfortunately, a lack of data can bring your dreams of expansion to a grinding halt.

Internal Fraud is a Very Real Risk

No matter how much you trust your employees, not having an accountant or strict accounting policies in place puts you at high risk of internal fraud. Accounting professionals bring much-needed checks and balances to a business and help prevent fraudulent spending that could result in the loss of your business.

You May Not Catch Unpaid Invoices

Even with the best intentions, it’s easy for invoices to go unpaid without an accountant on board.

An accountant and accounting system in place can help automate your invoices from delivery to final payment. If you need help implementing an accounting system, an interim accountant can connect you to a system that fits your needs and gives you more control over invoice recordkeeping.

Keep Your Accounting Under Control With OSMEAC Solutions

If your business is in-between accountants or if hiring someone full-time is too expensive, OSMEAC Solutions can help! We offer contract accounting services that let your business meet its accounting goals in an on-demand setting.

Our financial professionals have experience in every industry and can help you manage your books, review your expenses, and get your finances in order.

Don’t go anytime without an accountant on your side. Contact OSMEAC Solutions today to learn more about our remote contract services.