There are some parts of your business that need to be done on site by you or one of your employees. Other areas of your business can be taken care of by full time employees or outsourced, depending on your needs. Accounting is one of the areas that can be outsourced and there are several reasons why it is becoming more common among savvy business owners.
1. Having full time employees is expensive!
There are a variety of expenses that come with having full time employees. As the employer, you pay more than just the salary that comes along with an employee. There are costs such as employer paid insurance and benefits such as paid time off. In addition, the hiring process and employee turnover can both have a major impact on your bottom line.
When you decide to outsource your accounting needs to a virtual accounting firm, you can avoid some of the expenses related to hiring employees. Hiring a virtual accounting firm will give you access to multiple accounting professionals without the need to add more full time employees to your payroll. You will pay for the services from a virtual accounting firm, but you will not have to pay for the extras such as insurance and benefits.
2. Full time employees require continued training and management.
When you bring on employees of any kind you will spend time and energy on training. New employees must learn the policies and procedures of your company. In addition, when you hire in house help with accounting you may need to train the new employee on the accounting software you prefer to use. After the initial training period, you (or someone on your management team) will continue to spend time on management and evaluation.
If you outsource your accounting department, there will be an initial time period where you must work with the accounting firm to get everything set up. But, after that initial set up, the accounting firm will be able to take over almost all of the accounting responsibilities for your business. When your accounting needs increase the accounting firm can adjust your service level and you will not have to spend the time or energy required to find a new employee for your accounting team.
3. Accounting and technological expertise are both necessary.
The way accounting is done has changed drastically over the last several years. It is no longer enough for your accounting professional to know how to run the numbers and compile the reports. Technology is now an integral part of bookkeeping for any growing business.
Virtual accounting firms have expertise in accounting and technology. The majority of these firms use cloud based technology that allows you to have constant access to your financial information. In addition, these firms often allow you to integrate the software you currently use for your accounting needs. Outsourcing all of your accounting needs to a high quality firm can provide you with all the benefits of accounting and technology professionals without the extra time and expense that come with full time employees.