WHY OUTSOURCE YOUR ACCOUNTING SYSTEM
Starting a business as an entrepreneur is because you had a dream. You saw a need or a problem common to many individuals or businesses, and you had an idea for a product that would meet that need or solve that problem. You looked forward to creating it, perfecting it, identifying your market, making critical connections by networking, and managing the health – and growth — of your promising venture.
As the business unfold, activities become larger and control become necessary, you find yourself spending hours every week trying to figure out whether you’re making or losing money, and why or why not. You’re struggling to pay your taxes and suppliers and other expenses, and you have to chase down payments from customers so you can fulfill those obligations. You’ve borrowed money or taken on investors to get the business going, and those people want regular updates, reports that you just can’t seem to get right.
Now you are stock with the problem of how to shuffle the business management and how your finances are being run. Whether you’re using software or still trying to get by with paper and the occasional spreadsheet, for you to stay focused in building your business you need a sound financial management with dependable accounting function- a resource you may not have in-house.
How do you checkmate this resource gap, outsourcing is just the right solution. Here are some major benefits and reasons why you should consider outsourced accounting:
- Outsourcing is cheaper with greater benefits
It’s no surprise that outsourcing work to an outside provider, versus hiring a full-time employee, saves you money. When you outsource, not only can you match the work hours/amount of projects to your needs, but also you can avoid typical employee expenses like benefits, insurance, payroll taxes, unemployment taxes, paid time-off, etc. You don’t have to provide work space, office furniture, computers or software, either. Even with the costs involved in farming out work, the financial savings are still significant.
Also is that, outsourced accounting firms can provide state-of-the-art infrastructure that assures superior results. As a result, you no longer have to purchase expensive software, additional computers, or hire personnel to maintain them. Because, an outsourcing firm specializes in nothing but accounting it can offer superior results in less than hours.
- With outsourcing you get a better command of your finances.
You don’t lose control of your company when you outsource your accounting. In fact, you get a better command of your finances. The outsourced firm works in an advisory capacity, and you still make the big decisions. You will probably even feel like you have more control because you’ll have a much better understanding of your company’s financial strengths and weaknesses.
- Outsourcing is time saving.
By transferring accounting needs to outside specialists, business owners can focus on what they do best – run their business. Both management and employees are freed to focus on the most essential and pressing issues in their business. Your new partners will take over your financial fundamentals, and they will manage them in a timely, accurate fashion by implementing that complex set of rules. By outsourcing your accounting system you save the time and capital that would have been required to hire, train, and pay accounting personnel.
- Outsourcing is a win-win for you and your partner
By outsourcing your accounting service to a professional, as a client, you receive a higher level of expertise since the outsourced firm brings experience from a variety of client situations, continuing education, and the firm’s other resources. The work is done in much less time without the normal distractions of an internal employee, such as routine staff meetings to vacations.
One of the biggest client advantages is objectivity. An outsourced firm can coach a client on sensitive matters, whereas, an employee may feel the need to avoid certain topics such as confidential owner compensation issues. The firm is privy to all the intimate financial details and develops a relationship as a trusted objective advisor with the client.
- Outsourcing as a strategic decision
Outsourcing your accounting functions is a strategic, forward-thinking decision for your business. Outsourcing some or all of your accounting functions means shifting bureaucracy to our shoulders. You will immediately benefit from having more energy for your core business.
- Time-Tested Technology
Finally, even if you did manage to figure out how to use accounting software, you can’t compete with your outsourced partner’s technology. Outsourcing firms use the best, most sophisticated state-of-the-art applications. So you get to have access to a more robust and sophisticated way of handling your finance at a cheaper cost compare to you having them internally. And you can always access your data easily.
In conclusion, outsourcing costs money. But if you consider the time and mental focus you’re wasting by trying to manage your own finances (losing revenue in the process), outsourcing’s affordability may translate to increased profitability for your company.