When they’re first starting up, it’s common for business owners to do everything themselves, including keeping the books — even if it isn’t really their area of expertise. But as the business grows, it becomes necessary to delegate some tasks to others.
At this point, the business is faced with a choice: hire a full-time employee, or contract with an outsource company to provide accounting and bookkeeping services. Here are the top reasons why many choose to go the outsourcing route.
Accessing comprehensive expertise.
In addition to taking the burden of routine data entry off your shoulders, a team of CPAs will have you covered for financial statements, income tax filing, payroll preparation, regulatory compliance, sales tax reporting, cash flow management and many other areas of specialist knowledge. You would have to hire multiple employees to match that level of service.
Using the latest technology.
For a small business, it’s often not cost-effective to buy state-of-the-art accounting software. For your outsource provider, it’s key to their success. The right accounting company will integrate their software with your business management system, giving you their capabilities at a fraction of the cost.
Avoiding payroll expenses.
A full-time employee comes with an array of costs — payroll taxes, workman’s compensation, unemployment insurance, health insurance, paid vacation and other benefits — which can be as much as 30% of the individual’s salary in addition to what you actually pay them. It’s something to keep in mind when you’re comparing the costs of in-house and outsourced accounting services.
Saving on overhead.
If you maintain your own accounting department, you must have somewhere for them to work. That means expanding your office space, adding computer stations, data storage and backup servers, and everything else they’ll need to do their job. Outsourcing gives you the opportunity to go completely paperless with your accounting, and leave all the space and equipment hassles to your provider.
Focusing on business growth.
With the accounting chores out of your hair, you’re able to put your time and attention where it belongs: controlling the quality of your products and services, staying ahead of your competitors, meeting short-term goals and making long-term plans.
Getting your life back.
As you know all too well, small business owners work crazy hours. Freeing up the hours you spend on bookkeeping just might let you have your weekends off. Relax, recharge, spend time with family and friends. Come back to work on Monday with fresh energy and a clearer vision to help your business thrive.
Best of all, you have peace of mind knowing that experienced professionals are watching over your financials. You can get a good night’s sleep, and wake up feeling better in the morning.