If you own a business and are doing your own accounting then you are costing your company money. Too many owners think they are cutting costs but keeping accounting internal but the price they are paying is actually higher than hiring an outsourced accountant/accounting department.
Procedures & Professionalism
If accounting were nothing but addition and subtraction, then it wouldn’t be necessary of accountants to attend college to learn the ins and outs. Since accounting is a framework of smart business practices that ensures financial records are current and complete, it’s clear to see that it is more than just a sophisticated system of tracking cashflow.
Professional bookkeepers are not trained in accounting practices. This is one reason to hire an outsourced accounting department rather than a bookkeeper. Outsourcing to an accountant will bring needed discipline to financial operations to “close your books”.
Taxes: Laws, Breaks & Incentives
Few business owners understand the tax laws as they apply to their businesses. Payroll tax, sales tax, unemployment tax, Social Security tax, etc… they all have to be calculated correctly and paid on time. Then as soon as you learn the rules of the game, they change.
Business owners have more important things to do than pour over IRS regulations. An outsource accountant gives the owners access to an expert who is familiar with the tax laws and filing requirements.
In addition to making sure your business is compliant, accountants often have insight into tax breaks that business owners may not be aware of. Some of these can amount to significant tax savings to the company’s bottom line, savings that are more than the cost to hire an outsourced accounting department costs.
Analysis & Advice
Professional accountants can provide a level of analysis of a company’s finances well beyond what a layman could. Reports can show patterns in revenues and expenditures that a superficial examination may not have revealed. With detailed information and review, the owner can focus and develop strategic plans that will bring future prosperity.
A business owner can ask the outsourced accounting department for advice. Ranging from basic business practices that can cut expenses and increase revenue to evaluations of major expenditures, this could be huge for a small business ventures prospects of survival and growth.
The value of an outsourced accounting department is difficult to measure but almost always exceeds the cost of the operation.
In short, as a business owner, you can’t do it all. By outsourcing your accounting, payroll and tax needs to a virtual accounting department, you get back that time to use on other things… like building and growing your business.