Outsourcing has become a popular trend in recent years as more and more businesses realize the benefits it can bring. One area where outsourcing can have a significant impact is accounting.
If you’re a small business owner or entrepreneur, you may be managing your business finances on your own or relying on a part-time bookkeeper. However, outsourcing an accountant can be a smart move that can help take your business to the next level.
Accounting will always be a necessary part of your operations, no matter the size of your company or the industry in which you work. For smaller companies looking to expand their business, it might be more efficient to hire an outsourced accountant instead of keeping one in-house.
Outsourced accountants usually work for outsourced accounting firms—businesses that provide their expertise for other companies’ accounting tasks. They do everything from bookkeeping and auditing to preparing reports for taxes.
5 Reasons To Outsource An Accountant
Hiring an outsourced accountant can bring a wide array of benefits to your company.
Saving more on overhead
Hiring a full-time accountant can be expensive. On top of their salary, you also need to provide other benefits such as health insurance, 13th-month pay, sick and vacation leaves, etc. You might also need to pay for training and onboarding fees. These extra costs add up, especially for a business looking to expand, considering how much you need to invest.
You can save money on the overhead as an outsourced consultant does not require the same benefits a full-time employee has. They also won’t need as much training, likely only needing time to adjust your company’s operations.
You can then invest the money you save from outsourcing elsewhere to help your business expand.
Continuing business operations
Bookkeeping and filing taxes are extremely time-consuming processes necessary for running a business, particularly during tax season. Outsourcing offers your business flexibility, allowing you to hire accountants only for these task-heavy periods and not for your day-to-day operations.
You can use the extra time you save from outsourcing to ensure your business runs smoothly at any time of the year. Hiring consultants also frees up your workforce from having to micromanage your finances to focus on running or adding value to your business.
Improving in-house accounting processes
When you hire financial experts, whether a financial advisor or an accountant, you’re paying for them to share their hard-earned experiences and wisdom. When you outsource to an accounting firm, you’re tapping into the combined experiences of several experts who have years or even decades of experience in accounting.
You can learn a lot from observing how they operate and listening to their advice to apply their knowledge to your current accounting systems. Things like more efficient bookkeeping and other tricks of their trade can help your business out long after the hiring period has ended.
Simple improvements to your accounting processes that you can learn from the experts can have a subtle but significant long-term effect on your business’ success.
Applying existing systems
As mentioned, when you outsource your accountant, you tap into their entire firm. Even if you only hire one consultant, that person can access their firm’s playbook and methods. The whole firm has dedicated a lot of time and effort to ensure its systems and strategies are as efficient and comprehensive as possible.
Outsourcing can give you access to those systems, giving you more value for your money than hiring or creating an in-house accountant.
Sampling varied experiences
Outsourced accounting firms have likely worked with businesses from a vast array of industries, some of which might be the same or at least related to your business field. They can give you unique insights into your area from trends they have observed working with companies in your industry.
These insights can help you have a better perspective on your field and allow you to learn a few industry secrets.
Crunching The Numbers
This guide gives you a better idea about the services an outsourced accountant can offer your business. From the more obvious assistance they provide with your accounting needs to more long-term benefits like sharing their perspective on your industry, outsourced accounting firms can offer a lot to your small business.
In conclusion, outsourcing an accountant can be a wise choice for small businesses and entrepreneurs who want to save time, reduce costs, and gain access to specialized expertise. By working with a team of accounting professionals, you can focus on growing your business and achieving your goals.