5 Reasons to Outsource Your Accounting
December 23, 2019
How many hours do you really have in one day? Of the 24 hours in a day, we typically spend about 1 hour and 14 minutes just for eating. The average American sleeps around 6 1/2 hours per night. The average commute in the US is 51 minutes. The average workday in the US is 8.7 hours. If you are following the math along, we are now down to 7 hours of 'other' time. This is 'time' that could be spent with your family, working on a hobby or building and supporting a business.
I'm sure about you, but once I leave work, the last thing on my mind is to do what I have just spent the last 8 hours doing. I want to do something fun. And, if you run a small business, I am sure that there are aspects that you love focusing your attention on, and others that you don't. And I bet you accounting is one of the latter.
If you're a small business owner who feels defeated by the infinite duties involved in bookkeeping, you're not alone. Accounting takes a lot of time and effort. Still, it's time and effort well spent because every successful business relies on reliable accounting information to operate smoothly daily and realize long-term growth.
Outsourcing your accounting services generally means that someone else is responsible for all of your accounting needs. They can pay your bills, arrange your deposits, and provide monthly financial statements. In other words, they're your off-site accounting department. Here are some of the reasons you should outsource your accounting services:
Outsourcing your accounting is more operationally effective because it frees you up to do what you do best: grow your business. If you're spending more time on bookkeeping than making money, it's time to consider outsourcing. Small business owners need experts to keep the books straight while they make money.
When you consider the overhead costs involved with hiring your own accountant or keeping an in-house accounting department, outsourcing your accounting can save you a significant amount of money. A professional accountant can save you money by preventing you from making accidental – but costly – financial mistakes with your records or paperwork.
Provides valuable expertise
Bookkeeping, preparing for audits, etc. requires skills and experience you may not have. This is particularly true for government contractors where financial costs incurred are the basis for pricing and billing to your federal clients. While you may be able to learn how to do this, it could take more time and effort than it's worth. And making mistakes in this area can cost you and your business. So, leave it to the experts! They have access to all the latest regulations, standards, resources, and contacts.
Provides tailored accounting services
You may just need bookkeeping, or you may need a CFO, or you may something in between. Outsourcing your accounting enables you to get assistance with only those accounting tasks that you need. Therefore, you avoid paying a controller to do bookkeeping. Having an outsourced accountant who oversees your books and financial records can provide you an impartial view of checks and balances. An outsourced accountant brings the experience and knowledge the comes from working with a myriad of business environments.
More often than not, you'll learn that the costs in outsourcing your accounting will be similar to in-house expenses. Yet, you'll gain expertise to help you manage your business more successfully.