As a leader in the car wash industry, you know first-hand how important it is to keep a close eye on your financial records and overall financial health. It’s essential that you have the ability to collect accurate and timely financial information that will allow you to make informed decisions, manage cash flow, and plan for the future. However, managing your accounting and finance services in-house can be costly and time consuming, and takes time away from what matters most to your business: delighting customers. That’s why leading car wash owners have turned to outsourcing their accounting and financial services to strategically position their business for growth.
When you begin to explore financial management for your car wash, it is helpful to break your accounting and finance operations into three distinct but broad categories:
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- Daily Operational Accounting
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- Controllership and Management Accounting
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- Financial and Treasury Accounting
Each area grows as your company matures, and each category has functions that become increasingly more important as the business succeeds. When searching for car wash financial management, you will want to look for a knowledgeable partner in all three areas so they can grow with you as your business grows.
As you think about how to further strengthen your car wash business operations, here are some of the top reasons why outsourcing your accounting and finance services can benefit your car wash for future growth.
Cost Savings
It sounds counterintuitive, but one of the most significant benefits of outsourcing your car wash’s financial management is the cost savings. While outsourcing an accounting and finance team will be an investment, hiring and maintaining an in-house team is even more expensive considering the need to pay for salaries, benefits, training, office space, and more… Outsourcing your accounting and finance services allows you to access the expertise you need without the added costs of maintaining an in-house team.
The cost savings that a car wash business can achieve by outsourcing its accounting department can vary depending on a variety of factors, including the size and number of car washes, the complexity of the business’s financial operations, and the level of expertise that is needed for the company’s particular financial needs. However, studies have shown that outsourcing accounting and finance functions can save washes anywhere from 20% and 40% of their total costs compared to an in-house team.
Some of the cost savings that can be achieved by outsourcing your accounting department include:
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- Reduced Labor Costs: Outsourcing allows car washes to avoid the costs of hiring and training new employees, paying salaries and benefits, and providing office space and equipment.
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- Scalability: When a business outsources, they have the ability to scale up quickly whenever they need to address any and all accounting and finance needs without the time it takes to train someone new —a critical pillar as you think about car wash growth.
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- Reduced Overhead Costs: By outsourcing, car washes can avoid the costs of maintaining an in-house accounting department, such as rent, utilities, and office supplies.
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- Lower Technology Costs: Outsourcing firms often have access to the latest accounting software and technology, which can be expensive to purchase and maintain in-house.
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- Improved Accuracy: Outsourcing can reduce the risk of costly errors and mistakes, which can lead to savings in terms of both time and money.
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- Avoidance of Penalties and Fines: When juggling many things while running a car wash, it can be easy to overlook the fine print within government regulations or tax laws. Ideally, you partner with a firm that lives and breathes tax law and financial regulations, which will help ensure that your business complies with the latest rules and avoid costly penalties and fines.
Expertise and Experience
Outsourcing your accounting and finance team means you can partner with experts with years of experience in their field. These professionals have a deep understanding of financial regulations, accounting principles, accounting systems and applications, tax laws at the federal, state, and local levels, and more importantly knowledge of the car wash industry.
The ever-changing landscape of tax regulations, reporting requirements, and accounting treatments demands a lot of time and energy to stay on top of all the changes and implement them to maximize your benefits and minimize any related accounting/finance risk.
Car wash leaders that have found partners with this expertise and experience are able to address fiscal matters faster and with a higher rate of accuracy, getting them back to what matters most — serving their customers. Ultimately, what outsourced experts with years of experience can provide in the accounting and finance sphere is to place you in a stronger position to make more informed decisions.
Positioning Your Car Wash for Growth
In today’s work environment, we see many team members having multiple duties and key responsibilities. As leaders, we must constantly be asking how to position our teams and the individuals on those teams in a spot to succeed. What we have seen, especially as of late, is the growing number of responsibilities leads to great team members becoming stretched too thin and not driving the outcomes and results that one would expect.
When you outsource your accounting and finance services, you can put your other team members to better use by focusing them on more important tasks related to the car wash. This can lead to improved efficiency, productivity, and even innovation, allowing your business to grow and succeed.
According to the Global Outsourcing Survey by Deloitte, outsourcing non-core activities can lead to a 59% increase in productivity and a 57% decrease in costs. Additionally, it allows businesses to focus on their core competencies and free up resources for growth and innovation.
As we think about what makes car washes great and why certain car washes appear to be especially successful, it boils down to using the team’s talents to their highest potential and for the best use of the business.
By focusing a team member’s responsibilities on a specific area, they can develop a deeper level of expertise and direct their efforts on tasks that require their particular skill set. Additionally, by reducing the number of responsibilities a team member has, they can easily prioritize their work, which can help them delight the customer, meet deadlines, and achieve their goals.
The Takeaway
As a car wash owner, you know that every minute and detail counts when it comes to your car wash. With the competition in the car wash industry on track to keep growing in the coming years, it’s more important than ever to stay ahead of the curve.
Outsourcing your car wash’s financial and accounting needs is more than just a smart business decision — it’s an investment in your car wash’s long-term success. With cost savings, access to expertise and experience, improved efficiency, access to the latest technology, scalability, and reduced risk, outsourcing is a strategic element more and more businesses are turning towards.
By partnering with an experienced outsourcing provider like Apple Growth Partners, you not only gain access to the latest technology and expertise in the field, but you free up valuable time to focus on other essential aspects of your car wash.
We partner with car wash leaders to understand their needs today, with an eye for growth, so we can also serve your needs tomorrow. This allows us to collaboratively craft a sustainable and scalable solution towards that vision. If you’re considering outsourcing your accounting and finance team, be sure to research and work with a reputable provider who can help you make the best-informed financial decisions for your business, optimize your operations, and grow your business.
For information and guidance on making the best financial decisions for your business, please contact Brandon Fredericks at bfredericks@applegrowth.com.