In many industries, the word ‘outsourcing’ has become synonymous with the term ‘offshoring’. It brings to mind an image of companies moving jobs outside the United States to save on labor and production costs. The practice of offshoring can have a negative impact on the economy because jobs get moved away from the US to other countries. While outsourcing and offshoring may be synonymous in some industries, they are not the same thing in the accounting industry.
- What does it mean to outsource the accounting for my business?
When you outsource your accounting responsibilities, it simply means that you hire outside help. For example, instead of hiring an in house accountant you can go with a virtual accounting firm. Virtual accounting firms employ a team of accounting professionals that can take care of the accounting needs of your business. There are virtual accounting firms all over the United States; you may even be able to find one near your geographic location. It is important to use a US-based accounting firm because your business operates within the US and is subject to her laws and regulations.
- Why choose a virtual accounting firm over an in house accountant?
Choosing a virtual accounting firm instead of an in house accountant can save you money long term. A full time employee comes with a variety of costs beyond a salary. There are additional financial obligations that come with an employee who has full time benefits. In addition, there are costs related to hiring, training, and managing an added team member.
When you use a virtual accounting firm, you only pay for the services you need. As your business grows, you simply add more services through the accounting firm. You do not have to go to the trouble or expense of hiring a new employee because the accounting firm has a team of professionals already in place.
- What does cloud accounting mean?
Cloud accounting means that you have access to your accounting information from almost anywhere. If you have a secure internet connection then you can log-in and look over the finances of your business. This means that you do not have to physically visit the accounting firm every time you want to look at the finances of your business. For example, if you want to look over your profit and loss statement from the last quarter on a Saturday evening, you can do that with the cloud.
- If I outsource my accounting will I have access to an accountant when I have questions?
When you start the process of outsourcing your accounting, you will work with the professionals at the virtual accounting firm to develop a customized plan. If you have a question or concern at any stage of the process, you will have access to the accounting professionals at the firm. The team approach of most virtual accounting firms means that there will be more than one person who can answer any questions you have about the finances of your business.
The next time you think about outsourcing in relation to accounting, think about virtual accounting. It is one situation where outsourcing can save your company money without having a negative impact on the overall US economy.