When most people hear about an outsourced accounting firm, they usually don't have a very good idea about what that is. So, they usually tend to assume that it may be a bookkeeping service company or a CPA firm. However, each one is different. So, how can you recognize an outsourced accounting firm?
Outsourcing has become part of most businesses for a huge number of reasons. And accounting is just one of them. Accounting is a demanding task that every business needs to perform. However, how can it be better managed?
What we have seen in the last few years is a tendency for business owners to think wisely about this question. It's not easy to turn a business into profit as well as it isn't easy to maintain it. So, business owners need to take difficult decisions like in what is concerned with accounting.
If some years back it was pretty common to see them hiring bookkeeping services, they aren't doing it anymore. Instead, they're turning more and more to outsourced accounting firms. Why? Here are 5 reasons:
#1: Time Management:
Accounting takes a lot of time. So, why should you spend precious hours recurring to your in-house team, when you can have them making more important tasks that will reflect on the overall profits? There are some tasks that can simply be outsourced. And accounting is definitely one of them.
#2: Reduce The Costs:
When you opt for an in-house accounting, you'll need to pay part or full-time employees. But you'll not only be paying their salary. You'll also be paying their benefits, plus adding the costs of the extra energy, paper, among so many others.
#3: Decrease Fraud:
When you have an in-house accounting team, for example, you usually only have one or two persons working in this position. So, you won't really have someone who can verify their work. And this puts you closer to fraudulent activity. However, when you hire an outsourced accounting firm, they will not only verify all the data as they will be held responsible in case there is something wrong with your papers.
#4: Accountants Are The Experts On The Subject:
When you have an in-house person to take care of this huge task, most likely you didn't choose this person based on their knowledge or skill. Despite you had those into consideration, the most important factor that you looked at was the amount that you were going to pay this person. So, you just can't expect this person to be a well-trained professional that will keep on top of all the changes that keep happening. However, when you hire an outsourced accounting firm, you know you'll be dealing with accountants that not only know exactly what they're doing as they are on top of everything that is changing and making the necessary changes.
When you have your business, your main goal is to make it grow. And by knowing all the places where you can cut down the spending to expand your business, it'll be easier to achieve that goal. And this is exactly what happens when you hire an outsourced accounting firm. After all, it's their job. They will give you not only suggestions as well as their feedback regarding any questions you might have that will allow you to achieve your goal.
The Bottom Line:
Accounting is the foundation of your business. Without proper books, projections, and people everything else crumbles. To see if outsourcing is right for you, contact us for a free consultation and we'll answer all of your questions.