Larger companies discovered over a decade ago that outsourced accounting processes could bring cost reductions and increase service quality. Small- and medium-sized businesses have recently started outsourcing accounting operations to take advantage of the same benefits.
Accounting and bookkeeping are necessary functions of any business. However, when daily responsibilities of a growing organization begin to take over strategic priorities, your business and its people can quickly lose their drive. With no one at the wheel, the wrong decision can hurt the overall financial well-being of your organization.
The following are some benefits of outsourced accounting:
- Ability to focus your resources on your core business. Get critical, up-to-date financial information without slowing down your organization. Organizing and interpreting information can quickly become a distraction from the strategic priorities of your business.
- Reduced overhead and other costs. Fewer internal tasks means less salary, training and recruitment costs. A knowledgeable outsourcing partner can save you money on penalties attributed to non-compliance.
- Better accounting information and overall accuracy. To maintain and build their reputation, accounting firms tend to hire the most talented people in the field and deliver high quality work. Having the right financial information at the right time can make a difference in your business by giving you the advice and insight to make informed strategic decisions. An accounting firm can help you maintain consistency around your financial documents and better habits surrounding expenses.
- Capability to change with your company’s needs. You can select the services you need so that you only contract to the one that applies to your business. Your accounting firm can provide information analysis for future endeavors.
One consideration to keep in mind is that working with an outsourced accountant means you’re reliant on external resources. To ensure you’re comfortable with the services provided, you will need to maintain regular contact with your accountant. Documentation of policies and expectations will help set expectations and accountability.
It’s essential that you evaluate your options carefully because an outsourced accountant can make or break your business. Our next article will discuss when will be the right time to outsource your accounting needs.