There’s no question that accounting is one of the essential functions of any business. To start with, you need to be on top of day-to-day matters like the status of your bank accounts, as well as your vendor bills and invoicing of your clients. Having access to accurate, up-to-date financial information is crucial for making wise strategic decisions and maximizing your profitability.
Most small business owners start out trying to handle their bookkeeping and accounting needs, like most administrative tasks, on their own. But this can be both time-consuming and risky. The next step is often to employ a part-time bookkeeper. But really neither of these are the ideal choice.
So it has become commonplace, as businesses grow, to outsource some of these niche functions to outside providers who specialize in those functions. Outsourcing your accounting means turning these tasks over to a team of skilled professionals with lots of experience performing those functions. This generally serves to save both time and money, and you certainly benefit from the expertise of having specialists do the work too.
Still, it can be a big move to entrust your finances to an outside group, especially if you’ve been managing it all on your own thus far. It’s understandable that many business owners will be hesitant to make such a drastic change. Here are a few of the reasons why many businesses are outsourcing their accounting.
Outsourcing your accounting reduces overhead.
If you’re running a growing business, you’re always looking for ways to keep overhead down, and hiring more staff brings a lot of additional overhead too. If you hire an accountant or bookkeeper as an employee, you’ll be taking on the costs of their salary, benefits, training, equipment, time off, and more. You’ll also be spending time and resources supervising and managing this person. Sooner or later, one person won’t be able to manage the work on his or her own, and the costs multiply. Outsourcing takes the work out of your office, and puts it in the hands of a virtual accounting department, which doesn’t take up any of your real estate, and you don’t have to oversee their work. You’ll pay only for the services that you hire them to do.
Outsourcing accounting provides flexible, scalable staffing.
As your business continues to grow, there are going to be times when the accounting workload increases, and you’re going to need more help. With an in-house accounting department, you’ll be forced to hire more people to do the work, which means searching, interviewing, and training, all over again. When you outsource accounting, the work will be handled by a team of professionals with plenty of backup staff in the bullpen, so to speak. If the volume of work increases, they’ll assign just the right person to handle the specifics of the additional work that needs to get done. It’s that simple.
Outsourcing accounting gets you, the business owner, out of the way.
As a business owner, your time is extremely valuable. You’ve got better things to do with your time than to get caught up in the minutia of day-to-day management of your books. So why not focus your efforts on your own specialty, which is running your business, and leave the accounting work to a team of accounting specialists?
More and more, small businesses are finding that outsourcing their accounting is an ideal solution on many levels. If you would like more information, feel free to download our eBook below: