You may have a lot of questions about outsourcing your bookkeeping:
- On a logistical, day-to-day level, how does it work, and what does it look like?
- What amount of control am I giving up?
- What are the short and long term savings?
We’ve answered a lot of questions in a previous article: Outsourcing: What’s the Value?
But before you fill your whiteboard with pros/cons lists, there is a more fundamental question to ask yourself: how do you know if you’re ready to outsource?
It’s a deceptively complex question, and one that only you can answer. The best place to start is with a SWOT Analysis of your company.
Perform a SWOT Analysis
Start by breaking out your legal pad and making lists:
- What are your company’s core strengths? What skill sets do you have locked down? Who are your key people, and what are they doing to bring you closer to success on a daily basis? What is currently giving your company an edge over the competition? Remember, this list is only for you, and it’s okay to brag on yourself!
- Likewise, what are some of the weaknesses you see within your company? You don’t have to be too hard on yourself, but try to be honest about the skills and infrastructure you know are missing from your current operations.
- Both within the industry and your niche, what opportunities do you see on the horizon? How are you positioned to take advantage of those opportunities? What steps do you need to take to put you where you need to be?
- And finally, what threats do you see causing problems for you down the road? The full effect of our new COVID-19 reality would have been hard to predict, but are there industry-specific issues that you need to be ready to adapt to?
Once you have a true vision of how your company is situated, you can then make strategic decisions that build on your strengths and account for your weaknesses. Start putting the small things in place now that will help you exploit upcoming opportunities and adapt to identified threats.
How does outsourced bookkeeping fit in with your SWOT analysis? If you have the people and infrastructure already in place to handle the present and future issues you discovered, then heartfelt, non-ironic congratulations! This is incredibly tricky for so many in this industry, especially the small operators who have grown quicker than expected, or the private equity firms that took advantage of an opportunity and found themselves ill-equipped for the oil and gas-specific accounting needs. If you find yourself more in the latter camp than the former, it’s okay! You’ve got time to figure this out. Your next question should be, where do I want to be investing my time and capital (both in terms of money and personnel)?
And this is where outsourcing’s real value lies. For companies struggling to manage their accounting, or even those “just getting by,” investing in qualified staff is usually not the best answer. If you have accounts payable and mineral interest management covered, but are looking to hire another employee to handle regulatory filings and escheatment, there is an easier way!
Here is where Eddye Dreyer Financial Services comes in: whether you need the full stack of bookkeeping services, or just one or two facets, we can tailor a solution that is much more economical than hiring in-house. When we speak with potential clients, we help them assess what they are doing well and what they need help with, so that we integrate seamlessly with what they already have in place. We augment your back-office accounting operations, we don’t replace it. And don’t misunderstand me – we can take on all of it, if that’s what you need. The beauty of our relationship-based service is that we bring our bookkeeping experience to the table, but we know that you know your company best.
If you still have questions about what our outsourcing services look like, I encourage you to check out these other resources:
- Why Outsource
- EDFS Custom Bookkeeping Solutions
- Five Reasons Independent E&P Firms Should Outsource Their Bookkeeping
Still not sure if it’s the right time? That’s okay too! Contact us here, or email our sales team, and let us help guide you through your assessment. If you don’t think you’re ready, we won’t pressure you!
Be sure you are meeting your company’s current needs, but also be thinking ahead to the opportunities, and challenges, on the horizon. We have the experience and the personnel to scale to whatever your future looks like.