As a business owner, have you considered how much you rely on financial data to manage operations? If your accounting is in-house, then you know that growth can pose a challenge. Your accounting processes need to keep pace while remaining efficient and cost-effective. A severe glitch could be catastrophic.
Firms that offer outsourced accounting services offer a solution that lets you focus on running your business instead of your tools. They combine the expertise of certified public accountants with scalability and personal service to help growing companies thrive. You can outsource some or all of your accounting functions to a full-service firm and focus on your core business.
Which services should you consider? Business growth means your financial needs have likely increased. In addition to bookkeeping and cash flow tracking, you may benefit from tax management and financial advising. Here’s a snapshot of what outsourced accounting services offer.
Free up your time by leveraging these core services:
- Accounts payable and receivable
- Cash flow tracking
- Employee payroll
- Tax preparation
Include the services of a part-time chief financial officer to help grow your business:
- Financial reporting and analysis
- Internal controls optimization
- Financial strategy and planning
When is the right time to consider outsourcing your accounting? The best time to safeguard your bottom line is usually now. Here’s how outsourced accounting can benefit you.
6 Benefits of Outsourced Accounting Services
1. Reduce Overhead
Adding your own accounting staff and technology is expensive and requires ongoing management. As your company grows, you will require a CPA’s expertise. Hiring a CPA in-house is costly and makes you dependent on one individual.
It can also be wasteful as the workload may not merit a full-time position. With outsourced accounting services, you can scale professional accounting support to your needs. You also have peace of mind knowing the firm has your back regardless of staff schedules.
Extra costs associated with in-house resources can snowball in the form of office supplies, technology issues, payroll, temp staff, and other expenses to hurt your bottom line. Factor in the time your staff spends on accounting-related tasks. Could they add more value elsewhere?
If you keep your own books, consider the opportunity cost. As a business owner, what is your time worth in dollars and productivity? Offloading your accounting frees you to focus on more profitable activities. It also gives you breathing room to revisit the big picture and steward your company roadmap.
With outsourced accounting services, you only pay for the services you need, without the maintenance overhead. You save money while profiting from the professional skills and secure technology support your accounting firm provides.
2. Leverage One Solution
Is your business grappling with balancing daily accounting operations and financial strategy? Outsourced accounting firms provide the services of a bookkeeper, CPA, and CFO under one roof. Your company can’t afford a tax mistake or strategic misstep that affects compliance, profitability, or customer loyalty.
Tax law and business regulations change constantly. Accounting professionals stay abreast of these changes and how they apply to you. Further, an outsourced CFO helps you plan financially and make better strategic decisions.
Your company’s success depends on its cash flow management. To know where your business stands, you need real-time access to cash flow and trend data. Outsourced accounting leverages cloud-based software to provide actionable data securely and on-demand. Professional accountants are skilled in analyzing cash flow and can advise you on how to control costs better.
3. Scale Up on Your Terms
You shouldn’t have to pay for tomorrow’s growth today. As your business expands, outsourced accounting lets you add services when you need them. You may start with bookkeeping and tax preparation to free up your time and add financial reporting and interpretation to help your company reach the next level.
This scalability also supports retrenching during market challenges so you can stay focused on long-term growth. You can reduce costs as needed without the burden of in-house accounting overhead. Your outsourced accountants will provide tactical financial insight to help you make agile decisions.
The use of cloud-based accounting software means you can add users, features, and data storage without investing in on-premises technology. You also have the freedom to access your data anywhere and work on your terms.
4. Make Better Decisions
Your company’s growth depends on the sound decisions you make from actionable financial data. However, interpreting data can be challenging and time-consuming. It is easy to miss critical information and realize it after a plan is in motion. Not only can data issues cause mistakes, but they can also mask growth opportunities.
Outsourced CPAs will analyze cash flow and spot trends and anomalies you should be aware of. They will help you efficiently reduce costs and build a realistic forecast.
When you need executive insight, outsourced accounting firms offer the expertise of a part-time CFO. Financials require careful evaluation in the context of tax law, regulatory requirements, your business roadmap, and other factors. Building on accounting services, your virtual CFO will help you interpret financial data and develop the right strategy for your business.
5. Focus on Your Core Business
When you started your business, you likely wore most of the hats. As your company grows, outsourcing your accounting frees you and your staff to focus on core competencies.
Expanding profitably takes total dedication and a willingness to jettison distractions. It also takes time, which is always limited. Outsourcing gives time back to your entire team to reinvest in the business.
Outsourcing also helps you remember why you’re in business. You love what you do. Going to work should be rewarding. If it feels more like drudgery, you may still be wearing too many hats.
The fact is, accounting is a professional function needing full attention. If it doesn’t fall within your core competencies, let the experts take it so you can excel at what you do best.
6. Mitigate Risk
As your business grows, keeping all functions in-house can make it vulnerable to single points of failure. Increased complexity can undermine profitability if not astutely managed. Staff problems or financial data corruption can derail operations. Outsourcing accounting functions ensures that continuity doesn’t depend on one individual, computer system or location.
Your company’s financial health requires professional accounting software and secure data encryption and storage. Accounting technology must be implemented flawlessly to avoid risk.
Lost or breached data can destroy a business. Inaccurate financials can cause tax and regulatory nightmares that may take years to rectify. Poor decisions based on faulty data can weaken your bottom line. Your outsourced professional accountant will provide support for a cloud-based solution that features bank-level encryption, secure data storage and robust performance.
Whether your company is new or established, growth requires sound accounting practices and expertise. Outsourced accounting services should be tailored to your needs and goals and scale with your business. Contact MBS Accountancy today to learn how our outsourced accounting services can support your success.