For as long as money has existed, so has bookkeeping and accounting. These two functions keep a systematic record of your organization’s information, allowing you to accurately record and forecast financial performance. Up-to-date records facilitate decision-making for management and are also a legal requirement in some instances. But let’s face it, bookkeeping and accounting aren’t the most exciting of topics in the business world. And as a business owner, you’ll find your time is better spent focusing on functions that grow revenue rather than overseeing day-to-day bookkeeping. How much time exactly? So, is hiring an in-house bookkeeper really the best solution? Let’s look at the ways outsourcing accounting and bookkeeping services can benefit your business.
To Outsource, or Not to Outsource, That is The Question
One of the best decisions you can make as a business owner is outsourcing your accounting operations – the benefits of which go beyond eliminating the hassle of in-house bookkeeping and accounting.
1. Cost-saving accounting services
It’s surprising how many business owners don’t know that they can cut costs by outsourcing accounting and bookkeeping. Look at it this way: by outsourcing, you get rid of the need for full-time or part-time employees and, in so doing, eliminate the costly benefits packages that come with that framework. Keeping extra personnel also generates more human capital costs, such as more desks, computers, and office space. Keeping an additional fully furnished office is costly and unnecessary. Another thing, more personnel means more time spent managing employees – ideally, time you should spend focusing on growing your bottom line. Outsourcing is one of the best ways to drive down overhead costs and get more value for your money. And you get to cut down on fraud and implement proper fraud accounting protocols by partnering with an external accounting firm.
2. Adaptability and scalability
Your accounting needs grow right along with your business. As a business owner, you want your accounting and bookkeeping to scale with the size of your operations. Let’s say you have to scale down during the coronavirus pandemic; even a temporary setback can force you to lay off an employee or keep them on the payroll at your cost. Outsourcing allows you to scale your services, up or down, without any lag or added costs. If your business has significantly grown, outsourcing means you don’t have to go through the hassle of a rigorous recruitment process.
3. Expert financial advice
Any accountant can keep track of cash flows and ensure taxes are paid on time, but there’s nothing like financial advice from a bookkeeping and accounting firm with years of experience. By outsourcing some of your administrative processes to a seasoned accounting firm, you make the most of a distinguished team of guaranteed and insured experts versed in all facets of the tax code. No matter how you look at it, collaborative accounting is better. For instance, with tons of loopholes and exemptions in tax codes, a whole department—leave alone one individual—isn’t enough to find them all for you. Professional firms dedicate time and money to keeping up with the latest financial and tax information affording you full-time coverage at a fraction of the cost. Hiring an expert helps you avoid major accounting blunders while growing your business.
Finding the Right External Accounting and Bookkeeping Services
Looking to outsource accounting and bookkeeping services? There’s no shortage of accounting firms in the market. The key is to find the right firm for your business and your industry. Outsourcing accounting and bookkeeping can improve your core business functions by gaining access to a world of expertise you could not afford otherwise. Once you’ve decided to hand over control of your books to someone else, you’ll need to answer a few questions before finding the best bookkeeping service for your company. Everything about your new bookkeeping regimen, from costs to HR-related issues to the range of services you can expect from your new accountant, will be influenced by the Remote or In House Bookkeeping question. It’s a decision that will impact your relationship with your new bookkeeper, the amount you pay for bookkeeping services each month, and possibly even your ability to expand into new markets. TheOfficeSquad is an expert firm that’s ready to help you spend more time on your business rather than in your business! Connect with TheOfficeSquad today to see how their accounting and bookkeeping services can help your business grow!