5 Reasons to Outsource Your Accounting and Bookkeeping
Small-business owners are faced with lots of challenges when trying to accomplish big goals with minimal resources. One of those challenges is whether to outsource various services, including accounting and bookkeeping. Many small-business owners opt to hire an outside firm to manage their accounting and bookkeeping services. Here are five reasons why you should consider outsourcing them too.
1. You’ll Save Money
Saving money is the number one reason many small businesses outsource accounting and bookkeeping services. Until a business reaches a certain size, it makes sense to outsource these services. Why? An employee managing accounting might make $50,000 in salary, but when you tack on benefits and overhead, that number increases to upwards of $78,000. Outsourced accounting can cost a company less than half of that.
Since every dollar you save helps prevent taking out another small-business loan — or allows you to apply funds from a current business loan to something that will generate a return on investment — outsourcing accounting can greatly impact the bottom line.
2. You’ll Have Experts at the Wheel
As a business owner, it can be hard enough for you to keep up on the trends in your own industry, let alone best practices in a whole other industry. Since the accounting and bookkeeping world changes rapidly, it takes a dedicated person to understand and navigate those changes — especially because mistakes in the accounting world can be detrimental to a small business. It’s best to have someone seasoned and in-touch with industry changes leading the charge.
3. You’ll Have More Time to Spend on Things That Matter
While some business owners see this task as simply tracking expenses or accounts receivable, quality bookkeeping underlines a company’s financial infrastructure, and it takes a lot of time. Leveraging experts and outsourcing these services to an outside team can free up your time to stay focused on things that matter, like growing your own business.
4. Your Team Can Stay Focused
In a small business, where every team member is taking on responsibilities outside of his or her job description, it can be easy to pass off or share the accounting and bookkeeping responsibilities. These tasks, however, serve as a distraction from the responsibilities that will help grow your business. It’s best to leverage your team members’ strengths and keep them focused on their roles, and let an outside firm handle accounting and bookkeeping.
5. You’ll Have Access to the Latest Technology
With how quickly technology changes, it can be both difficult to know what your accounting and bookkeeping tool options are and time-consuming to determine which is right for your business. An outside firm, however, has the infrastructure in place to manage your accounting and recommend the right tools for your team.
Leverage the industry knowledge of a specialized accounting and bookkeeping firm to be sure you’re using the best tools for the job; that alone can save you time and money in addition to what you’re saving by outsourcing these services.
If you think outsourcing your company’s accounting and bookkeeping needs might be right for you, contact three to four providers in your area who can give you quotes. Also consider selecting an accounting and bookkeeping firm that aligns with your company’s values and culture, as the outside firm will become part of your team.