Comparing Small, Midsize, and Enterprise Businesses: Financial Complexity
Small Businesses: Simplicity with Growing Challenges
Revenue: Up to $50 million
Headcount: 1-99 employees
Common Financial Characteristics:
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Basic bookkeeping needs (accounts payable, receivable, and payroll) to some complex accrual accounting
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Owner-led or small team managing finances just starting to require fractional CFO assistance
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Limited reporting requirements (cash flow, basic financial statements) early one with a transition to cash forecasting and budgeting around the 8-figure mark
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Starting out with cash-based accounting but quickly transitioning to accrual in the early 7-figures
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Fewer transactions but growing concerns over cash flow and collections
Small businesses often start with an in-house bookkeeper or part-time accountant. However, as revenue and expenses increase, they quickly reach a point where financial visibility and efficiency become a challenge. This is where outsourced accounting services provide value, helping them transition from manual or DIY processes to a structured financial system with proper internal controls.
Midsize Businesses: Increasing Volume and Complexity
Revenue: $50 million to $1 billion
Headcount: 100-999 employees
Common Financial Characteristics:
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Larger transaction volume across multiple customers, vendors, and business units
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More complex revenue recognition and expense management
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Need for real-time reporting and financial analysis
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Established budgeting, forecasting, and KPI tracking is a must
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Often requires the implementation of a more expensive ERP system
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Stricter internal controls to mitigate fraud risk
Enterprise Businesses: Highly Structured and Regulated Financial Operations
Revenue: $1 billion+
Headcount: 1,000+ employees
Common Financial Characteristics:
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Fully staffed in-house finance and accounting teams
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Strict compliance with GAAP, IFRS, or other regulatory standards
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Sophisticated multi-entity consolidations and intercompany transactions
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Extensive budgeting, forecasting, and strategic financial planning
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High transaction volumes requiring ERP automation
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External audits, investor reporting, and SEC compliance for public companies
How Our Outsourced Accounting Services Support Small Business Growth
At Basis 365, we specialize in providing outsourced accounting department services for small businesses on their journey to midsize. Our expertise in cloud-based financial management, internal controls, and process automation allows growing businesses to scale efficiently without the burden of managing an in-house accounting team.
If you’re a small business looking to scale with financial clarity and confidence, Basis 365 can help you navigate the transition with best-in-class outsourced accounting solutions. Reach out today to see how we can support your growth.
