More than 36 percent of all small business accounting and IT tasks are outsourced. These companies said their main reason is that these tasks require skills they might not have internally.
Are you considering outsourcing accounting to a professional service? Here are some financial advantages of taking this step.
Your Time Is Valuable
When you started your business, it was important to be able to perform a multitude of tasks, from sales and marketing to basic bookkeeping. As your business expands, it’s easy to become overwhelmed. Delegating some of the tasks allows you to gain back quality time for clients.
Your focus should be on your business and expanding into new markets or product lines. This can result in increased revenue. Your time savings will be worth more than the cost of outsourcing.
Cost-Effectiveness
Most outsourcing companies can offer their services at a lower rate than it would cost for a business to hire someone to do the work. This is partly due to lower labor costs in their location.
It’s also because you save the cost of providing an office, computer equipment, and supplies for the accounting staff you would need. You likely don’t need a full-time person year-round, so you save because you only pay for the services you need.
Gain Expert Knowledge
As an entrepreneur, your skill set may be in marketing or creating new products in response to customers’ needs. You could hire a full-time accountant to take care of the records for your business, but that may be more than you are ready for. When you outsource your accounting and taxation needs, you will gain the advantage of access to top talent with the skills you need.
The accounting service will have a team of experts who have access to the software required to take care of your needs. From bookkeeping to payroll and taxation, they can help. Check out kleanbooks.com for a great example of the variety of services a single firm can provide.
Better Data Drives Better Decisions
Access to timely reports will provide you with better information. This will drive better business decisions. A bookkeeping firm will produce accurate record-keeping and reports.
They understand how to build in the checks and balances to ensure your data is correct. When you have the time to review professionally prepared reports, you will find ways to save money and streamline operations.
Audit Readiness and Compliance
A professional accounting firm will keep your books and records up to date at all times. They can ensure that your business is compliant with tax laws and will prepare and file the required payroll remittances and reports. If the IRS wants to look at your records, they will provide audit support.
Consider Outsourcing Accounting Today
Your decision will come down to weighing the pros and cons of outsourcing accounting tasks. There will be added costs, but they will be offset by the advantage of a team of professionals working for your business.
Did you find this article helped you decide to leave the books and records to the professionals? If so, check our other helpful business articles to discover additional ways to create financial advantages for your business.