Business owners around the world are always doing a juggling act to keep their businesses running. They are managing the day-to-day needs of their businesses, hiring and training staff, planning for growth and expansion as well as the myriad of other tasks that are their responsibility as the owner.
For most of these small businesses, there is no house accounting team to take care of the accounting. There may be one staff member dedicated to the task, or no one other than the owner themselves. As the owner already has many full-time jobs running their company, they might not have the time, patience or ability to manage the accounting on top of everything else.
Are There Downsides to Handling Your Finance and Accounting Needs Yourself?
When it comes to managing and handling the accounting needs of your business, many business owners are used to doing everything themselves. After all, the motto, “If you want something right, do it yourself”, exists for a reason. But are there downsides to handling your accounting needs on your own? Yes.
- The time you spend managing the accounting and bookkeeping aspects of your business may be better spent elsewhere.
- You may not have the expertise to manage them properly.
- The stress from handling everything can cause you to become unhealthy or sick.
- You may not have the proper systems in place to make your accounting efficient and effective.
When Does it Make Sense to Outsource Your Business Accounting?
There are many factors to take into consideration when deciding if it makes sense to outsource your business accounting needs to experienced professionals at an accounting firm. Not all businesses are created equal and are all at different stages of development and growth. What are these criteria?
- If your business needs a large accounting team but cannot yet cover that cost, outsourcing will allow you to get your accounting done in a more financially prudent manner.
- If your business is smaller and doesn’t need a full-time, 40-hour-a-week accountant, outsourcing your bookkeeping and accounting needs would allow you to get them done properly and cost-effectively.
- If you have more bookkeeping duties than you can complete effectively (or without it taking over your life as the business owner), outsourcing your accounting may be a good option.
What Are the Benefits of Outsourcing Accounting and Bookkeeping Services?
- Better Use of Your Accounting Budget (Save Money)
Hiring accounting employees to work for you is expensive. There are benefit programs, payroll, and taxes that come with all employees, plus the added expenses of equipment and materials they need to do their job, including a place for them to work. By outsourcing your accounting, you can redirect some of these costs to your new accounting services and put the rest into other projects in your business.
- Professional Accountants and Bookkeepers (Leverage Expertise)
Accounting software is great and can help you grow your business but properly doing the bookkeeping and accounting for your growing business may take more expertise and knowledge than you have available to you. Professional accountants will leverage their considerable knowledge base to make sure your accounting is done properly and efficiently.
- Spend Your Time Doing Other Valuable Tasks (Save Time)
As a business owner, you have more important things to do than worry about your books. By outsourcing your accounting needs, you can put your time and effort into the reason you have books to do in the first place: your business.
- Access to Cutting Edge Accounting Tech (Protect Your Assets)
Outsourced accounting has the benefit of being in the hands of professionals who are always improving their practices and accounting functions by leveraging the very best accounting technology. These accounting technologies help with everything from reducing the risk of human error to ensuring that the possibilities of fraud are infinitesimally small. By outsourcing your accounting, you are benefiting not only from the skill and knowledge of the accountants but also from their cutting-edge accounting technologies.
- Scale Easily as Your Business Grows (Prepare for Success)
As your business grows, so does the accounting and bookkeeping workload. Thankfully, when you have outsourced your accounting, that extra workload does not negatively affect your ability to grow and run your business. Accountants can also make suggestions as to where there may be beneficial changes that could help your bottom line. The level of scalability that comes with outsourcing gives you the freedom to pursue your vision as a business owner without being tied down by the weight of bookkeeping and accounting duties.
- Flexibility to Tackle the Unknown (Be Ready to Adapt)
The world is changing at an ever-increasing, breakneck pace and, as the last few years have taught everyone, you can never really know what is just around the corner. Outsourcing your accounting to professionals gives you the flexibility to take on whatever the world throws at you, allowing you to use the changes in the marketplace to your benefit, or at least to blunt any potential negative effects.
- Insights Into Your Financial Key Performance Indicators (Prepare for the Future)
Key performance indicators are easily identifiable when your bookkeeping and accounting are done by professionals. Outsourcing these tasks gives you the added benefit of the years of expertise of the accountants doing your books. Preparing for the future means looking at you’re bookkeeping in a way that will tell you what changes you can make to make your business better and stronger and outsourcing your accounting can give you that insight.
How Can You Ensure You Make the Right Choice for Your Business?
Your juggling act as a business owner may not need to include the accounting paperwork you are used to. All businesses need to ensure their accounting and bookkeeping needs are taken care of and outsourcing them to a professional accountant may be the right choice. Look at all your options and talk to a team that would be willing to take care of you to see if that is the right fit for you.