To outsource accounting or not to outsource accounting for small businesses, that is the question.
Have you outsourced your accounting? If you own a small business, it’s something you may have considered. But is outsourced accounting for small businesses the right choice for you, your company, and your budget? A recent study indicates that small business owners are spending the equivalent of two to three work weeks per year just managing the finances for their business. If you’re not using your extra time to take a vacation, you certainly shouldn’t be using it on a function that someone else can do better, more effectively, and more efficiently.
Still not convinced? Let’s take a look at the pros and cons of outsourcing the accounting function for your business.
Pro: The Value of Your Time and Resources
Your goal is to run your business effectively and efficiently, utilizing your time and your company’s resources to the best of their abilities. When you take on the role of the accountant for your business, you’re sacrificing the time and energy you should be spending on your primary role, which is to build your business and take care of your customers, clients, and employees. Outsourcing helps you realign your value with the needs of your business.
Con: Limits on Control
Some business owners might see outsourcing as something that puts limits on their control over their business. This can be especially true when it comes to bookkeeping and accounting. When you hand over the reins to someone else, you have to relinquish a certain amount of control. This would be true whether you’re outsourcing or hiring someone to do the work in-house. The good news is, the goal of most accounting firms is full transparency for their customers. So even though you’re relinquishing control of the work, you still get full access to the information and how it’s managed.
Pro: Take Advantage of Experience and Expertise
If your area of expertise was accounting, that’s probably what you’d be doing for a living. Since it’s not, and you’re not, one of the biggest advantages of outsourcing your accounting to a firm is that you will gain the expertise of not only one accountant or bookkeeper, but an entire team. Their training and experience will serve your company in the short-term as you record financial transactions, data, and company information, as well as in the long-run as you prepare for taxes, growth, and investments.
Con: Feeling Like You’ve Lost Oversight
When you’re not managing certain aspects of your business, it can feel like you no longer have oversight of things that are important to your success. This can be true of anything you don’t have your hands on directly, but when you outsource, it can amplify that feeling. You can rest easy knowing that any reliable accounting firm will share full access with you, so you can see everything they see. You won’t lose oversight, but you will gain valuable time and resources by not managing the books yourself.
Pro: Cost Savings with Outsourced Accounting for Small Businesses
When you spend your time managing the books and accounting for your business, you’re taking away the time you could be spending making money for it. That’s not a profitable use of your time. If you decide to hire an employee to manage your finances, that means you have to provide workspace, sick days, vacation, benefits, and more. When you outsource your accounting, you can save money on both. You no longer have to give up your valuable time to do the work, and you also don’t have to add a full-time employee to your budget.
Con: Other Costs
While doing your accounting yourself can seem like a money saver, you know that the value of your time lies in doing other things. Outsourcing will cost you money. You will have to pay whatever firm you decide to hire. However, there is real value in knowing you’re using an expert to take care of the single most important component of your business: your finances.
For more information on the pros and cons, click or call 678-990-0924 for a free consultation to learn how outsourced accounting for small businesses can help you.