3 Things to consider when outsourcing your accounting
It can be difficult for small- or medium-sized company owners to decide whether to hire an in-house accounting team or outsource their accounting services. Hiring someone to work in the office and handle the books is the easiest option for some. However, it is not always the best choice.
Here are three factors that business owners need to consider when deciding whether they want an in-house or outsourced accounting department.
Are Your Accounts Receivables Manageable?
Predicting and tracking cash flow is essential to run your business efficiently. Cash flow problems are the main reason 82% of small businesses fail.
Cash flow will be negatively affected if customers fail to pay or delay payment. Your team may need to follow up on payments consistently, and the speed at which invoices are sent will also be a factor. It is easy for a small in-house team to get overwhelmed by invoicing, follow-ups, payment collections, and other AR duties. Outsourced accounting firms will provide the necessary team to keep track of your receivables, no matter how large or small the business is.
Are you prepared to scale your accounting?
Accounting is different for every company. An in-house team may keep everything under one roof, but need more efficiency. When working with an outsourced accounting services provider like Basis 365, our accounting team sticks to a set of clear and uniform procedures across all of our clients. This ensures accuracy and efficiency on both sides.
It is helpful when an organization grows rapidly or unexpectedly. Can your team handle an unexpected growth spurt? Accounting service providers can scale up with your business. You don't have to rush to hire new employees or deal with the hassles of training and hiring. Outsourcing your accounting services will allow you to add new services, adapt, and scale efficiently.
Are you using the right checks and balances?
It is important to have checks and balances to catch any clerical or accounting errors and more severe issues like fraud and theft. You should trust your small team to take care of accounting. You don't have an unbiased third party to protect and review your books.
It's more common than you think that internal theft occurs. Hiring an accounting service provider to provide outsourced services is a way to avoid this problem. Outsourced firms provide the checks and balances that business owners need to ensure their books, reports, entries, and more are accurate.
A team of accountants in-house is essential to catch any potential mistakes. Most new businesses start with a small group of employees who will all wear different hats. If you have an employee who needs to be certified or has no accounting training and is in charge of the accounting for your business, it could lead to accounting mistakes.
Outsourced accounting is a great way to hire some of the best accountants to manage a company's accounting.
Basis 365's team of controllers is what a business owner needs to have complete confidence that their accounting is getting done and done right.
