5 reasons to think about outsourced accounting

Many entrepreneurs, small businesses and start-ups struggle to find a full-time accountant who has the skills and knowledge to prepare financial statements, analyze data, manage bank accounts, prepare outgoing invoices, and prepare financial reports. Finding qualified, eligible accountants at an affordable price is even harder. This is why over a third of small businesses outsource their accounting.

Many businesses today recognize the many benefits of outsourcing bookkeeping and accounting services. Outsourcing accounting is a good option for many reasons.

1. Access to Expertise

You can outsource your accounting and gain executive-level financial knowledge without the need to pay full-time executive salaries. Your accounting needs will be taken care of by a team of experienced and highly qualified consultants. They will also apply the best practices to your business. This will make your job much easier. Instead of spending time trying to figure your finances, hire someone who will quickly explain the numbers. You'll also know your burn rate, employee utilization, exact margins for every client and job, which will help you make better informed decisions.

2. Effective Segregation of Duties

You expose yourself to costly mistakes and fraud by managing your books in-house. Outsourced accounting will provide financial balances and checks. It is not a good idea to have the same person handle your payroll and accounts payable. They will also need to reconcile your bank statements and credit card statements. Outsourced accounting solutions allow you to have access to accountant specialists who will cross-check your books and make recommendations to ensure that you get accurate information.

3. Enhanced cost effectiveness

A small business will not need an accountant for more than 40 hours per week. You can outsource your accounting services monthly on a retainer basis until your company is able to pay a full-time employee. You can also hire an external controller to review your books, compile reports each month for a fraction the cost of hiring a full time employee. Outsourcing is a long-term strategy to fill in the gaps before your company ever requires a full-time employee.

4. You can spend more time focusing on your core business

Your most valuable resource is your time. Trusted professionals can handle your accounting tasks so you can spend your time growing your business. Accounting and bookkeeping are often a distraction from your day-to-day operations. It's better to delegate when possible so that you can spend your time on your business.

5. Increased flexibility and scaleability

Even though you might be able to afford an accounting team full-time when the economy is strong and business is healthy, losing customers or leads can cause havoc. You may have to fire employees or face financial difficulties if this happens. Outsourcing accounting allows you to scale up or decrease based on your requirements. Outsourcing accounting services not only allows for scalability but also allows you to concentrate on your core competencies while still benefiting from the financial expertise of an expert.

Wrapping up

Outsourced accounting can make a big difference in your company's ability and willingness to take on difficult times. Outsourcing accounting can help you save money on overhead and wages for full-time and part-time employees. Outsourced solutions allow you to only pay what you use and retain the professional resources that you need to grow your business.