Outsourced accounting services assist small businesses with optimizing financial operations, managing payroll, and planning the company’s future. Business owners typically hire outsourced accountants on a part-time basis, so there’s no need to hire internally and no need to train someone new.
Whether you’re bringing on someone to manage the books or serve as a temporary CFO, you’ll be working with someone that brings immediate expertise and, in many cases, industry knowledge and experience. If you’re ready to begin working with a new accounting team, contact an outsourced accounting firm today.
Outsourced services for businesses also come in a variety of forms beyond accounting and bookkeeping. As a business owner, you can easily outsource your HR requirements and responsibilities, IT services, and marketing efforts. These outsourced services assist you with managing the back-end aspects of the business that are often asking for too much of your time. In addition, outsourcing makes it easy to hire for the expertise directly related to what you require, rather than hiring someone in-house who’s more of a generalist. In some cases, outsourcing your accounting can even save you money.
Hiring an outsourced accountant for your business doesn’t have to be a financial challenge and is usually an expedient solution for balancing the books. Here are a few of the most common misconceptions that business owners have about outsourcing their accounting and other business processes.
Outsourcing is Too Expensive
Contrary to popular belief, outsourcing your accounting or other core business operations is actually a financial solution rather than a problem. When you’re choosing an outsourced accounting firm for your business, you’ll have plenty of pricing options, so you’ll always be able to choose the level of service that makes the most sense for you and your team.
When your new outsourced accounting comes in to manage the books, they will often find areas of your operations where you cut costs and optimize your overhead spending. Sometimes, your outsourced accountant will end up paying for themselves. In short, the financial tune-up that’s available with outsourced accounting is a necessity for almost all businesses.
Your Company Will Lose Jobs
When a company turns towards outsourcing for its accounting needs, it’s often assumed that the company will have to make room elsewhere, and drop employees. However, this is rarely the case, regardless of the level of outsourced service the business is planning to acquire. Because the business only pays for the hours it needs, rather than for a full-time employee, there’s often plenty of room for everyone’s salary without adjustment.
Outsourcing Leads to Security Concerns
When they first sign an outsourcing agreement for accounting or other outsourced services, many business owners are first and foremost concerned with the security of business data and financial information. However, outsourced accounting firms are experienced in working with this sensitive data and will often provide suggestions to increase the security of this information without reducing transparency or access for the business owner. However, when you’re bringing on a new outsourced accountant, it’s always a good idea to ask them about their company’s security and liability policies.
Outsourced Accounting is Just Bookkeeping
Outsourced accounting for your business often goes well beyond managing payroll, particularly if you’re working with a CPA, or certified public accountant. You’ll have the sound financial advice you need to make critical business decisions that affect its future growth and profitability potential. You’ll also get plenty of help with cleaning up the business’s financial standing and keeping things running as smoothly as possible.
Business Owners Can Easily Manage Accounting
If you’re a small business owner, your time is exceptionally valuable. Chances are, there’s plenty of things you could be doing instead of accounting that assists the business with your expertise and experience. Managing the company finances is time-consuming and requires more expertise than you might initially imagine. While it’s of course technically possible for business owners to solely manage the company’s finances, the cost-efficiency of doing so is rarely the best option. Hiring a new outsourced accountant is often a reliable way to get back the time you’d otherwise spend monitoring your money.
Outsourced Accounting Requires Long-Term Contracts
Hiring an outsourced accountant doesn’t require business owners to sign up for longer than a few months at a time. In many cases, businesses turn to outsourcing services for short-term concerns or to help them get through the busy season. You’ll rarely need to hire for more than three months at a time to get started and will usually pay on a monthly or quarterly basis, depending on how your accounting contract is set up.
Outsourcing Reduces Quality
If you’re already hiring someone to manage your books and considering outsourcing this task instead, it’s easy to think that the main disadvantage will be a drop in quality. However, outsourced accountants can jump into your project with immediate expertise. In many cases, an outsourced accounting firm can connect you with an account manager that already understands your industry and your competitors. You’ll usually see an increase in quality by outsourcing, rather than the other way around.
Only Big Companies Outsource Their Accounting
Outsourced accounting is highly-beneficial for both small businesses and large corporations alike. It’s a frequent misconception that only larger companies outsource their accounting and bookkeeping. Regardless of the business’s size and scale, you’ll find financial solutions that match your operating requirements and budget.
Conclusion- The Most Common Misconceptions About Outsourced Accounting
Outsourced accounting and financial services assist business owners with optimizing the operations side of their business and setting new goals for company growth in the future. The expertise of a certified public accountant will also help with everything from balancing the books to securing your data and financial statements. To begin working with a new accounting team for your company, reach out to an outsourced accounting firm with the industry knowledge and expertise relevant to the products and services you offer.