The Benefits Of Outsourcing Your Business’s Accounting Services
You (like so many other business owners out there) probably handle every aspect of your business. After all, why wouldn’t you? Because it’s your business, it makes sense to be so hands-on all the time, right?
Yes and no …
Yes, from the front desk to the back office, it’s absolutely important to know what’s going on in your business. But that doesn’t mean you should be the one in the trenches doing the work. Instead, as the business owner, you are responsible for the big picture. This includes looking at how each aspect of your business works together to drive growth and profitability. And because you are responsible for looking at the big picture of the business, it’s likely you won’t have time to consistently commit the time necessary to stay on top of your company’s accounting responsibilities – and these responsibilities are absolutely necessary for your continued success. Here’s why …
Consistency Matters
There are so many reasons to remain constant when it comes to your accounting. I could literally go on forever. Instead, for simplicity’s sake, I’m going to boil it down to four words or one acronym – generally accepted accounting principles or GAAP.
Your company’s accounting is tied to a set of GAAP regulations, which are in place to ensure that every business in the United States can be accurately compared by banking institutions when supplying a business with a loan. Since your business won’t be the only one seeking a bank loan, banks will look at other business’ financial reports too.
Read Also: Getting To Know The Bank Financing Structure
But here’s the good news about adhering to these GAAP regulations, anybody with experience with the rules should be able to handle your accounting. This means you no longer have to be solely responsible for your bookkeeping to ensure that it’s being completed correctly and legally. Even if you can’t hire a full-time employee to take care of your business’s accounting needs, you have inexpensive options.
Full-Time Accountants Are Not Always Necessary
Hiring an accountant is a huge commitment and can be quite costly. These days, more and more business owners are choosing to forego the hiring process in favor of outsourcing the job to a qualified accounting service specialists.
Outsourced accounting is gaining momentum for the following reasons:
- Affordability – True with almost everything that’s outsourced, outsourced accounting services is a cheaper alternative. Not only does this option allow you to have access to certified public accountants (CPAs) and bookkeeping professionals, you can gain access to these resources without having to pay them a salary and benefits, which results in substantial business savings.
- Customizable Services – When you outsource your accounting responsibilities, you only pay for the services that you need. You no longer have to pay a full-time employee to sit around and do nothing (or to perform busy work) when there isn’t enough work to keep them busy for 40 hours any given week.
- Decrease Office Expenses – Hiring new employees often results in the addition of numerous office expenses, including costs related to technology and furniture. Outsourcing the work can help you avoid these costs.
- Saves Time – Running a business is a never-ending job and your time is precious. By outsourcing your accounting services, you’ll be able to focus on the big picture, which will help you drive growth and sustainability.
- Maximize Efficiency – When you handle your business’s books yourself, you’re almost certainly wasting time – especially if accounting isn’t your strong suit. Outsourcing your accounting ensures that an accounting expert will always handle your company’s accounting. Additionally, because an expert can review your numbers on a deeper level, they will be able to provide you with essential financial insight that will help you make better, more strategic business decisions.
Is Your Business Ready?
Are you wondering if your business should consider outsourcing its accounting function? Consider the following questions:
- Is your company currently undergoing significant growth?
- Have you accepted investor capital?
- Have you, or do you have plans to hire a new employee?
- Do you actively search for accounting solutions?
- Have you reached $500,000 or more in sales?
If the answer was “yes” to any or all of these questions, you are a great candidate for outsourced accounting services. If you would like to learn more about the benefits associated with these services, email Rea & Associates to speak with a member of our client advisory services team.
By Matt Long (Wooster Office)