Why Having Outsourced Accounting Functions Builds Profit
Small business owners are notorious for having a strong work ethic, filling their plates with many responsibilities, wearing as many hats as they can, spreading themselves thin and having just enough time to get their work completed. They love the freedom of being a business owner but at times get overwhelmed with all the tasks required of them. When it comes to accounting, many business owners historically see it as a necessary process to complete so they can file a tax return at the end of the year.
Typically, the accounting is first completed by an owner in the business, until they grow large enough to hire office staff then the bookkeeping is passed off to the office staff. The information produced is usually only looked at when their CPA or tax professional files the tax return at year end. The owners don’t realize the value in utilizing the financial statements. After all, it is believed cash is king! If there is cash in the bank there usually is not much thought to the financial status of the organization. But that is not always the case, if you want to grow your business you will need a professional team of accountants to make sure you have accurate and useful information. Not only that, 3rd party accountants tend to be more equitable!
Save Time and Money
You save time and money in two ways. First, if the owner is performing the accounting tasks, each hour spent on accounting is an hour taken away from your customer, clients or producing your products. Essentially what is your hour worth in your business? When you outsource it you save time and thus have more time to go get more business for yourself or to take care of your current business.
Second, if you have an administrative assistant that does the accounting, depending on what else they do you are paying them around $30k/annually plus FICA taxes and someone to manage them. Your total cost for a bookkeeper could be around $32,295 which is typically more than an annual accounting contract. Most importantly, you won’t have one or two accountants – you will have a team of accountants working for you to benefit your business.
Reach Your Goals
Small business owners typically don’t have the time to review their statements or set goals based on their numbers, which are a very objective gauge to improve the health of an organization. Having a team of accountants producing financials and advisors helping you understand them in a way that will positively affect your business will provide you with the best tools and knowledge to grow your business. The accountants have the main foundation completed – accurate financial statements.
Ultimately, accounting is the language of business and knowing your numbers allows you to make better decisions. We pride ourselves in not just knowing your numbers but helping you understand them too.
Did You Know?
When your company is the size where it makes sense to have an in-house accounting department, having a third party of professionals review your processes is beneficial. For example, we help organizations come up with more efficient processes for internal accountants. This can save companies from paying overtime or free up accountants to cover other roles, like better monitoring employee expense reimbursements.