This cost-effective solution can help grow your business and increase your profits
As your business has grown, the hours you have had to spend on bookkeeping have also increased. Though you’d love to get that time back to devote to other tasks, you think that outsourcing your company’s accounting sounds like it might not be cost-effective. But, here’s the reality: working with an accounting firm isn’t as costly as you might believe. In fact, outsourcing your accounting is a smart financial move that can affect every aspect of your business. When your business reaches certain parameters, you realize that your accounting needs extend beyond what can be provided by a bookkeeper.
Some of the signs that your company is ready to upgrade its accounting practices include:
- Your revenue is $1 million or more
- Your staff includes 8 to 10 employees
- You receive funds from investors or funding sources
- You need detailed financial reports to help plan for growth
Your existing accounting staff likely doesn’t have the expertise to handle the tasks that will come up as your company grows and its finances become more complex. To continue handling your accounting in-house, you’ll need qualified staff who are working at a higher level, which means higher salaries. You may also have to invest in new software and employee training. These solutions require significant expenditures. When you outsource your accounting, you save on the costs of hiring and managing more experienced employees, as well as implementing new technology.
Outsourced accountants can help your company find other ways to reduce expenses. Together, you can review detailed financial reports that include key performance indicators (KPIs) that allow you to see exactly how each facet of your company is performing. You can see the results of customer, job and marketing spending and decide how to focus future efforts. Simply put, bookkeeping alone can’t offer you the forecasting you need for successful growth, but working with an outsourced controller or outsourced CFO can.
Outsourcing your accounting can give you back the time you need to focus on your mission, sales and services to increase your organization’s efficiency, purpose, and potential profitability or sustainability. A team of outside accountants can also offer guidance on the accounting method that best fits your business, while guaranteeing that your books are accurate and up-to-date–all of which affects the bottom line.
Whether you are a not for profit or a for profit organization, another benefit of outsourcing your accounting is expert assistance with tax planning, which can help your company identify benefits from available tax savings opportunities. Using an outside team to handle your company’s finances also cuts down on the risk of employee theft and helps ensure regulatory compliance.