5 Reasons to Outsource Your Accounting
Are you looking to drive growth and improve profitability for your business? One of the best ways to do this is with outsourcing your accounting department. There are many reasons to consider this, below we highlight the top 5:
#1 – Save on Your Most Valuable Asset – Your Time
The average small company in the US spends 80 working hours (two weeks) on tax prep alone. The larger the company, the more time spent. The opportunity cost of time spent on administrative tasks such as taxation is substantial – especially for a smaller business where your focus should be on growth. Save time and get the distractions out of your office so you can focus on driving your business.
#2 – Cut Costs
Outsourcing accounting can save you up to 40% vs. in-house accountants. The reason? You can employ an outsourced firm at your demand. The outsourced firm will only work on your account on a need basis. Internal accounting departments are in office full time, which adds to your operating expenses with added payroll and benefit expenses.
#3 – Grow to Scale
Let your accounting department grow with you. An outsourced accounting firm will provide essential bookkeeping all the way up to CFO level services. Many offer “a la carte” options that fit to your immediate need and will provide a scale plan to add to your level of service as you grow. Not only does this optimize your cost, but it provides you with a partner that truly understands your business and where it is headed.
#4 – Improve Accuracy & Reduce Fraud
Most victims of fraud are from privately owned small businesses with less than 100 employees. The reason? Many do not have access to a CFO or some even a controller – they lack expertise in KPI’s and metrics that help identify issues or anomalies in transactional data. Accounting firms have dedicated specialist for each aspect of your accounting needs and work within various industries. Outsourcing provides you with experienced and professional accountants.
#5 – Expertise
The expertise ties to the above point – you are working with experts in various fields of accounting with CFO level staff that are overseeing your books, your cash flow, and your projections. Outsourced accounting firms have individuals that collaborate with each other, creating more visibility, focus, and therefore accuracy in your accounting.