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2 January 2020 / Accounting Professionals

Outsourced Accounting Services: Everything You Need to Know 

2 January 2020 > Accounting Professionals

As a busy business owner, you wear many hats. At the beginning, you may be the product designer, salesman, receptionist, and accountant. But as your business grows, it will become harder to handle all of these responsibilities. Plus, you should be able to enjoy managing your products or services and employees rather than being buried in the books for the business. 

It’s nice to keep your expenses and record keeping close to home, but eventually, you’ll need to outsource it to an accounting firm or individual so that you can focus your efforts on other aspects of the business. 

When you’re ready to take that step, here are a few things you should know. 

Outsourced Accounting Services Explained 

Outsourcing is a useful tool for any business owner seeking to keep costs low while maximizing the efficiency of a business. Outsourcing is often associated with overseas workers taking over a responsibility in an office, and while that is true in some cases, there are also many ways to outsource a little closer to home. 

Outsourced accounting is usually used when a business grows beyond the scale of a startup, and the business owners need a trustworthy resource to keep their books in shape. It’s part of scaling up because as much as you would like to be everywhere, you have limits on time and abilities. You might also have limits on how much you can spend on a bookkeeper or accountant, and hiring an internal accounting department might be outside your budget. 

This is where outsourcing begins. You’ll find a local accounting firm or remote accounting team with an excellent reputation and reviews, and hire them to organize your finances. Their financial intelligence can be tapped any time you need information about your company’s expenses, taxes, and more. 

In today’s world of modern technology, one of the best resources for outsourced accounting is a cloud-based accounting firm. Such a company will update your financial records in real-time so you can check them whenever you need. They’re also constantly available in this type of service, making it easy to connect when needed. 

Leaving it up to a professional under your supervision is a great way to maximize your resources, cut costs, and relegate your talents elsewhere. 

8 Benefits of Outsourced Accounting Services 

With the above discussion, you can already identify some benefits of outsourced accounting already. But to give you a more tangible view of the benefits, let’s take a closer look at why outsourcing your accounting services is so beneficial. 

1. Access to Financial Professionals 

As you work to grow your business, it’s incredibly useful to have a financial professional you can call at any time. Whether you’re checking on your budget or trying to understand scalable numbers, your financial expert can provide the answers. 

The benefit here is that your outsourced accounting firm is devoted to you as a client. They’ll take your call anytime and will work with you to get you the best solution. It’s worth every penny. 

2. They Do It All 

Outsourcing your accounting needs usually means that you’re getting a comprehensive service. They’ll know how to handle more than your average bookkeeper, meaning they’ll cover billing, collections, deposits, payroll, account reconciliation, sales taxes, basic financial statements, and even your end-of-the-year taxes. 

Most importantly, they’ll ensure your books are up to date, which is invaluable for many reasons. First, it helps you see real-time data and key performance indicators to help you grow your business. Second, it helps keep you organized during tax season. This part of the year is stressful for many businesses, but your organized books will make it a cinch for you. 

3. More Time to Focus on Your Business Core 

The business owner should not be spending hours reconciling accounts or running financial reports. Your talents and time are much better served focusing on the core of your business, the things that make your business run. It’s hard to think of innovative ideas and move in the direction of positive growth when you’re bogged down by paperwork. 

4. It’s Cheaper Than an Internal Accounting Department 

As any good accountant can tell you, it’s expensive to hire someone in house. Sometimes, an internal department is the more efficient option if you’re a large business with heavy demands. However, most small to mid-size businesses would be wasting precious funds on internal accounting that can be hired out. 

Outsourced accounting services are only as expensive as the flat fee or hourly rate. You don’t have to pay benefits, vacation time, time and a half, or other fees that are associated with internal employees. Cloud-based accounting departments are even more financially friendly. Overall, it’s significantly cheaper for mid-size or smaller businesses to hire out.  

5. Actionable Financial Intelligence at Your Fingertips 

Much like you would have with an in-house accounting department, you’ll have all the financial data and intelligence you need right at your fingertips. You won’t have to calculate all the numbers because it’s available whenever you need. 

This is best achieved with a cloud-based accounting firm because you can access your accountant and many of your records in the cloud. It’s updated in real-time, so you’re never waiting on new reports. 

6. Greater Efficiencies at Work 

Imagine the possibilities when you’re not waiting on financial reports from members of your staff that are already wearing too many hats. People will be able to focus on their jobs and do them to the best of their abilities. 

More importantly, you’ll be able to ask for automated processes. A professional accounting company will be able to design and optimize an accounting software program in order to implement automation and fast financial reporting capabilities. This gives you the information when you need it, so you can use that information as you see fit in business operations. 

7. Easier Decision-Making 

Since you have financial intelligence at your fingertips, you have the ability to make decisions on the fly. You’ll understand essential concepts like the right prices for your employees, the most profitable clients, when you need to hire more employees, if you can afford to give out bonuses, where you should be spending your marketing dollars, and much more. 

These questions delay many business owners in making informed and profitable decisions, but when you’ve outsourced your accounting needs, that won’t be a concern. 

8. Lower Risk, Greater Reward 

There are many risks with doing your own accounts, namely that you might make a mistake that could be detrimental to the company. In some cases, the mistake could be construed as fraud. 

You need trained accountants who understand risk and how to avoid it for your company. By sending your books out to a reliable firm, you provide greater transparency and accuracy in all your workflows. You’ll have the peace of mind knowing that you’re getting the most accurate and trustworthy financial records possible. 

Need to Outsource Your Accounting? Call Taxfyle Today! 

Now that you understand the many benefits of outsourced accounting services, you’ll need a reputable, trustworthy company to handle your books. Here at Taxfyle, we’re the choice of many small and mid-size businesses, and we’d be happy to do your accounting through our cloud-based accounting system. 

We’ll cover everything from payroll and collections to financial data analysis and tax preparation. You can rest easy knowing that your business finances are in the hands of professionals. Call today to request a free demo of our services! 

Ralph Carnicer

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