I’m considering outsourced accounting services, but getting it wrong is not an option.
There are many benefits that could lead you to be considering outsourced accounting services, especially if you own a small business. Your first instinct might be to take on the accounting role yourself. But once you realize the time commitment involved, not to mention the level of expertise required, you’ll soon find that having a professional take over is the way to go.
But how do you choose a professional? And how and why do you choose one that’s outsourced and not on your staff? There are some simple tips you can follow to make sure you use outsourced accountants the right way. Here’s what you need to know.
What Is Outsourcing?
Outsourcing is obtaining a service from external sources instead of internal sources. Outsourcing means you hire someone who does not work directly for your company to do the job that might otherwise fall to someone in-house.
Why consider outsourcing for your accounting? Because you will save money and time. Instead of spending money on the overhead and labor costs of hiring a full-time employee, you can outsource this role. You’ll just pay an individual or company to do the work for you without having to worry about vacation pay, sick pay, insurance, benefits, desk space and technology costs. You also won’t have to take the time to do that job yourself. By outsourcing, you can continue to focus on your business and promoting your product or service.
Taking Time to Increase Efficiencies
It might seem contradictory to talk about taking some time to do something in order to reduce the time it takes to do something. However, outsourcing is just that. Initially, it takes some time to make sure you understand what outsourcing can do and find the right accountant for the job. Plus, in the long run, it’s going to increase your efficiency many times over.
Why Outsource Accounting?
Several areas of business are well-suited to outsourcing. These include jobs that require specific expertise, tasks that are repetitive and labor-intensive, and work that demands specialized knowledge. Accounting is one of those jobs. Effective financial management requires training and a unique understanding of how the ins and outs of a business’s finances affect the day-to-day as well as the long-term goals of that business. Not only that but come tax time, you will want an expert in your corner to make sure you’re getting all the deductions you are eligible to receive. Finally, you’ll also ensure you’re following all regulations and codes.
Finding the Right Contractor
Before you hand over all your financial information and bookkeeping to an unknown individual or company, be sure you know who you’re hiring. The right partner is critical.
When it comes to accounting, you want to make sure whoever you hire has the latest technology and software to streamline your bookkeeping. They should use valuable and effective tools for maximum efficiency. Furthermore, they should provide solid financial reporting for the growth of your business. Know what you’re looking for before you start looking. Someone who is reliable with good references and extensive experience in your industry is important.
You might also want to consider hiring a company with multiple accountants instead of hiring an individual. Having more than one set of eyes on your data can ensure accuracy and create accountability. Additionally, it allows for support whenever you need it. For instance, you never have to worry about what you might do if your accountant goes on vacation, because there is always someone else there to handle the work. Your bookkeeping will be seamless throughout the year.
Taking the Next Steps
Once you find the right outsourced accounting for your business, it’s time to step back and let them work for you. When it’s your company, it can be hard to relinquish control. Delegating the work to experts will not only benefit you but your business as well.
Learn more about how to proceed if you’re considering outsourced accounting services. Here’s a free report on maximizing your use of QuickBooks here: https://accountingpartnersusa.com/services/small-business-services/