When you run a business, you have to pay close attention to the numbers. Accurate reports show you how your business is doing, and can also help you make more effective business decisions. However, accounting can be time-consuming and error-prone. To ensure everything is done correctly, you may want to outsource your accounting.
Wondering if outsourcing is right for you? Take a look at the advantages, and then, keep reading to learn if you should outsource your accounting needs.
1. Specialized Financial Advice
When you outsource your accounting, you get access to a team of specialized accountants overseen by a CPA. Whether you need bookkeeping, accounting, reporting, or a blend of services, you can have people with the right expertise handle it. Using outsourced accounting services can save your business money, especially if you don’t need someone full-time.
2. Savings: The Costs of the Hiring Process and Additional Employees
Even if you have the need for a full-time accountant or a team of people, the hiring process takes time and money. You have to draft a job description, review applicants, and spend time interviewing prospects.
Once you find the right fit, you need to onboard and train an accountant. Then, you have to provide them with office space, software, and benefits. The cost of hiring an internal employee almost always outweighs the cost of outsourcing.
3. Saving You Time
Outsourcing your accounting function provides your business with a skilled accountant to enter transactions into the bookkeeping software and generate financial reports for their CPAs to file tax forms.
As your business grows, your accounting needs will also increase as well as the need to incorporate safeguards into the business finances. Outsourced accountants can support the entire end-of-month closing, payroll processing, and tax reporting in timely manner.
4. Ability to Scale the Company
Scalability is another benefit of outsourcing. When you have outside specialists handle your accounting, you aren’t limited by your internal resources. You can grow your business at any pace without worrying about whether or not your accounting team can handle the growth.
Accounting and bookkeeping can be outsourced to handle sales and use tax reporting, bill payment, payroll process, and tax reporting. If you need a higher level of outsourced accounting, a controller can provide tax planning and analysis, depreciation scheduled maintenance, and financial statement review and analytics.
5. Access to Industry Resources
When you work with a third party to handle your accounting needs, you get access to the resources that they use. This may include special software that is cost-prohibitive to buy on your own. However, it can also include intangible resources such as special knowledge or experience that you don’t have on your own.
6. Monitor Business Strategy
When you outsource your accounting, you don’t just pay someone to provide basic bookkeeping services. Instead, you also get access to a professional who can help you monitor your business financial strategy.
Outsourced accountants and controllers can provide the right reports for your business. They can also help you examine your business structure to ensure you have the optimal structure for tax and profitability. A professional accountant can help you with everything from reducing corporate taxes to leveraging your deductible to minimize your tax liability.
Which Accounting Services Can Be Outsourced?
One of the main benefits of outsourced accounting is that you can outsource nearly any financial task. You can outsource every single aspect of your bookkeeping and financial needs, or you can do a majority in-house and then outsource select services to the pros. Ultimately, you get to craft a balance that works for your company.
You can outsource all of your bookkeeping needs. This includes keying in transactions, reconciling bank statements, creating financial reports, and more. You can also outsource accounting processes such as filing tax forms, making federal tax deposits, and paying taxes.
Depending on your needs, you can give your bookkeeper or accountant access to all of the accounts that they need to handle your books. Alternatively, you can use a cloud-based service that lets your bookkeeper enter some transactions on your side, and then, your accountant can handle the more advanced tasks on their end. This allows your bookkeeper and accountant to work as a team.
You can find someone to help you look at the big picture by providing you with business or financial advisory services. You can do the bookkeeping yourself, and then, bring in a third party to compile financial statements or provide audit and assurance services. This can be critical when you need independently reviewed financial statements for lenders, investors, and other interested stakeholders.
When to Outsource Your Accounting Services
You should consider outsourcing your accounting when the task draws your focus away from other core business essentials. You should also consider outsourcing if you want to make sure that you’re optimizing your tax planning and financial positions. Even if you don’t need to outsource everything, you should consult with an accounting and tax specialist on a regular basis.
At DHJJ, we can help. We offer a range of bookkeeping, accounting, financial compilations, reviews, and audits. We also offer consultancy and advisory services. We have offices in Naperville and St Charles, and we serve the greater Chicago area. To learn more, contact us today.
