4 Reasons to Outsource Your Business Accounting
April 10, 2016 Francine Jones 0 Comments
If you are a business owner, there are many more reasons to outsource accounting tasks other than it being a less than exciting activity. No matter the size of the business or the industry, an increasing number of business owners have made the decision to outsource tasks based on improving their bottom line. If you are on the fence about whether it would be a good idea to outsource your business’ accounting needs, consider the following reasons why outsourcing could be the perfect decision for your business.
1. Reallocate your use of time.
In-house accounting can be a serious time drain, even if you have years of experience running your own books. While accounting is a crucial task to keeping any business up and running, it necessarily distracts from other revenue generating activities, such as increasing sales or rolling out new marketing initiatives. By outsourcing your accounting needs, you will have more free time to spend on other crucial aspects of maintaining and growing your business.
2. Increase your protections against fraud.
By working with an outside, experienced controller or CFO, small businesses can avoid falling prey to the type of accounting fraud which is easy to commit without significant external controls. An external controller will be more familiar with the types of fraud schemes plaguing a variety of small business than an in-house accountant, who may not have as broad a range of experience in the industry.
3. Decrease your costs.
Outsourcing your business’ accounting needs will allow your business to save money by not having to provide benefit packages to full time employees. You can also eliminate costly and time consuming human relations issues by working with an outside accounting firm. In addition to saving on payroll costs, outsourcing accounting work means that you will not have to pay for supplies and valuable real estate within your company to house an accountant or accounting department. This is a huge win for your business’ overall bottom line because it eliminates unnecessary waste and also streamlines operations.
4. Get a more holistic perspective.
Often times, when accounting is done in-house for a business, it is more difficult to get a bird’s eye view on the entire financial picture. Internal accounting of various departments within a business often does not tell the complete story of how the business is performing or where there could be valuable waste reduction. One of the many benefits of working with an outside accounting firm is that your company will be scrutinized with a fresh set of eyes, probably working with an entire team of accountants committed to crunching the numbers to show the actual state of the company’s expenses and revenue rather than a piecemeal approach.