How does outsourced accounting work?
A recent survey by Intuit, the makers of QuickBooks, found that 89% of small-business owners believe they have more success working with an accountant. So what does this look like? And how can you find one? There are many options available, so it is crucial that you choose the right one. Of course, you can always hire a full-time, dedicated accountant. However, this can be costly and often does not produce the results that small businesses need. In contrast, an outsourced accountant is a better and cheaper solution.
Businesses are increasingly turning to outsourced accounting firms, which combine the expertise of accountants with the most up-to-date technology to provide a cost-effective solution for their accounting needs.
What is an Outsourced Accountant?
An outsourced accountant works part-time with you to handle your accounting and bookkeeping, so you don't have to do the accounting or hire an employee. In addition, companies that do not have the resources or desire to hire an employee can outsource their accounting work.
What is the role of outsourcing in accounting?
Outsourced accounting offers flexibility and the ability to obtain your services without paying for those you don't need. An outsourced accountant will usually conduct an assessment to determine what you need and how they can help you achieve your goals. They will then provide a proposal detailing their services and the associated costs. Sometimes, this will involve implementing new business applications or systems that will simplify your life and provide more information. Sometimes, they may recommend changes to your accounting practices to improve internal controls and increase efficiency. Working with the right outsourced accounting team will make a big difference in your company's growth.
Why do companies outsource their accounting?
Outsourced accounting services have many benefits, but these are the three main reasons companies choose to outsource.
They save money
They get the knowledge they require across a broad range of industries
They free up time
You can save money: Smaller and mid-sized companies don't usually have large budgets. As a result, outsourcing is often a smart way to save money. For example, a small business owner may be able to hire an outsourcing accounting firm to handle their company's bookkeeping and accounting requirements for a fraction of the cost of hiring an internal accountant.
Expertise: We see many companies making the same mistake when they try to hire just one person to perform various functions. Small businesses have many accounting requirements, including basic bookkeeping and financial forecasting. These functions require the right skills and experience. For example, a bookkeeper is not the best person to prepare a cash flow forecast or a detailed financial projection. Likewise, a controller or CFO is not the best choice for processing your daily transactions. Outsourced accounting firms can offer part-time staff to fulfill all these roles cost-effectively.
Time: All entrepreneurs must free up time. It is the thing that they most value but often use the least. However, accounting functions require more focus and time as a business grows. Small businesses spend around 120 working days on bookkeeping, administrative tasks, and other tasks. Outsourcing your accounting will allow you to have more time for your business and help you focus your efforts on producing better results.
Are you considering outsourcing accounting?
It is essential to consider your business goals. It is important to look objectively at where your finances are now. Then, think about where you want your business to go in the future. What steps should you take to achieve that goal? There are many responsibilities and tasks that you need to be focusing on. Doing your bookkeeping and accounting shouldn't be your priority. Outsourcing your accounting might be the key to getting you where you want.
At Basis 365, we believe you should be focusing your energy on growing your business, not on keeping your books. We provide small to mid-sized business owners with bookkeeping and accounting support. We work closely with you to help you stay on top of your numbers and support growth. Chat with us to learn more about how we can help streamline your accounting and bookkeeping process.
