Every business needs accounting, regardless of its size or the industry it belongs in. Profits and growth hinge on money management, so it only makes sense to hire a professional for these tasks. While having an in-house accountant is an option, another method that’s slowly becoming just as popular is outsourcing accounting. And here are a few reasons why it’s becoming such a widespread practice:
Benefits of Outsourcing Accounting Tasks
One of the key benefits of outsourcing is the reduction in overhead costs. This way, you’ll only be paying for the services that you really need, when you need them. Outsourcing frees you from the expenses of an average employee (paid leaves, health benefits, insurance, payroll taxes), therefore reducing costs greatly. Depending on your needs, you may outsource a bookkeeper for a set rate for a fixed period of time. Some contracts may even consider pricing based on the number of deposits, checks, invoices, or the number of employees. Essentially, outsourcing gives you financial flexibility and savings.
Access to Better Technology
In most cases, business owners have some knowledge of accounting, but they don’t have expert knowledge. If you outsource to accountants and bookkeepers, it goes without saying that they will be keeping themselves up to date with the latest industry trends and technology to give them a competitive edge, making them some of the most capable professionals to do your accounting work. With this arrangement, you won’t have to worry about learning entire systems and potentially making errors in your calculations — they can do it for you, and more efficiently, too.
Collectively, U.S. businesses reportedly lose up to $110 million a day because of employee theft. In fact, employee-related crimes are more common than you think. Pulling in external accounting resource can reduce the aforementioned risks. Having third-party professionals offers an objective view of your finances, so you can be more secure and build more trust within your organization. Outsourced accountants also have strong internal checks and balances systems —which you have full access to — and they also audit and report your financial trail.
How You Can Outsource Accounting Tasks
Consult a Freelance Accountant
The U.S. has been facing a shortage in accounting professionals for some time now, and this has affected a lot of businesses over the years. This has been especially evident during the pandemic, when businesses across the country are struggling to keep afloat. However, online learning has actually been finding a solution to problems such as this. Remote learning has provided many benefits to the accounting profession, as it has become the only safe alternative to face-to-face education. Because accountants are required to have 40+ hours of continuing professional education annually, it’s an ideal arrangement. It also addresses the shortage in accountants, as online learning is helping students graduate off-campus.
Those who choose to take these online accounting degrees are taught to analyze and improve financial stability for businesses. Industry experts lead the curriculums, so graduates are primed to take the certified public accountant exam by the end of the programs. Online degrees from reputable colleges are just as valid as traditional ones, and online graduates are just as capable. You could even argue that they are at an advantage as they’re more digitally fluent than those who weren’t trained online. With more skilled accountants, it will be easier to set up affordable consultations with freelancers, who can take a look at your business’ books and suggest the best course of action. This is cheaper than hiring a full-time accountant. Just make sure to prepare everything before your consultations and to make a list of questions to maximize each session.
Utilize Accounting and Bookkeeping Software
Business automation software like the ones here at QB Techs could be valuable investments. They make the accounting processes smoother and more convenient. Software such as QuickBooks is used in conjunction with your daily operations so you get accurate financial tracking and documentation. Using the right software also allows you to be more cost-efficient because you’ll only be paying for the specific accounting services that your business requires.
Plus, using software and technologies from QB Techs lets you work together with accounting professionals who can walk you through the various processes.
Outsourcing accounting is becoming commonplace among many small businesses, and for good reason. This could be just the solution to help your business grow.
Post written especially for qbtechs.com by Bridget Jethro.