Outsourcing your bookkeeping isn't just a cost-cutting measure; it's a strategic tool that, when paired with the S.M.A.R.T. goal framework, can directly lead to business success. Bookkeeping Services in Cleveland (https://www.aenten.com/us/locations/cleveland/). By defining clear, measurable objectives for your finance function, you ensure the investment in outsourcing provides a maximum return.
Here is how to structure your success using the S.M.A.R.T. model after you outsource your bookkeeping:
S: Specific (Pinpoint the Target) 🎯
Outsourcing should aim to resolve specific financial pain points, not just vaguely "fix the books."
Before Outsourcing: The goal is often vague, e.g., "Get better reports."
S.M.A.R.T. Goal: "Reduce the owner's time spent on bank reconciliation and expense classification from 6 hours to 30 minutes per week."
Outsourcing Action: The outsourced bookkeeper is specifically tasked with implementing automated bank feeds and cloud-based expense management software to achieve this reduction.
M: Measurable (Quantify the Improvement) 📊
Success must be quantifiable. Outsourcing empowers you to track performance metrics that were previously hidden or ignored.
Before Outsourcing: Metrics like "Cash Flow Cycle" or "Days Sales Outstanding (DSO)" are unknown.
S.M.A.R.T. Goal: "Improve the monthly close time from 25 days to 5 days within the next two quarters."
Outsourcing Action: The service provider institutes a strict daily workflow (e.g., daily transaction processing and weekly reconciliation) to ensure the financial data is ready for reporting by the fifth day of the following month.
A: Achievable (Ensure the Resource is Right) ✅
The goal must be realistic based on the resource you are utilizing. Outsourcing makes high standards achievable.
Before Outsourcing: It's unachievable for the owner to handle complex multi-state sales tax filings while also running the business.
S.M.A.R.T. Goal: "Eliminate all late payment penalties and capture 100% of early payment vendor discounts (e.g., $2,000 in savings annually)."
Outsourcing Action: The bookkeeper is responsible for implementing an automated Accounts Payable system that schedules payments accurately, making this financial goal fully achievable.
R: Relevant (Align with Business Strategy) 🧭
The financial goals must directly support your larger business mission, such as growth or profitability.
Before Outsourcing: The owner is distracted by tax compliance worries, limiting focus on product strategy.
S.M.A.R.T. Goal: "Increase gross profit margin (GPM) from 40% to 45% by Q4 by gaining accurate insight into Cost of Goods Sold (COGS)."
Outsourcing Action: The bookkeeper precisely tracks and categorizes all COGS data, providing the owner with the accurate reports needed to identify areas for pricing adjustment or supplier negotiation.
T: Time-Bound (Set a Deadline) 📅
A deadline creates urgency and accountability for both the business owner and the service provider.
Before Outsourcing: The goal is open-ended: "We should file taxes correctly eventually."
S.M.A.R.T. Goal: "Be 100% prepared for annual corporate tax filing, with all necessary financial statements delivered to the CPA by January 31st."
Outsourcing Action: The outsourcing agreement includes a clear Service Level Agreement (SLA) mandating the year-end closing procedures and delivery timeline, making the service provider accountable for the deadline.
By applying the S.M.A.R.T. framework to your outsourced bookkeeping function, you transform it from a passive expense into a high-powered, measurable tool for achieving business success.
Would you like to draft a specific 90-day S.M.A.R.T. goal focused on cash flow improvement after onboarding a new bookkeeping service?