As a business owner, you are probably asking yourself a lot of questions like What are my main priorities? What should I do myself and what should I outsource?
No one knows the challenges of managing your company’s finances better than you. Making
sense of your numbers can be time-consuming and frustrating, to say the least. It’s no wonder why so many small business owners have turned to outsourced accounting services
What is Outsourced Accounting?
Outsourcing accounting is a simple idea to understand. You hire a third-party organization to manage your business finances instead of having an accounting team in-house. Businesses can outsource accounting services that want to benefit from tasks including payroll, accounts payable, accounts receivable, and other finance functions, to ensure correct financial reporting.
An outsourced accounting service provider will ensure smooth finance operations by allowing you to properly:
Analyzing financial statements and costs of operations
Manage payroll and ensure correct remittances to government agencies
Reconcile your books monthly with your bank account(s) and business credit card(s) and loan accounts
Track expenses and help you take advantage of tax deductions
Overseeing and managing your revenue
Completing income tax returns and doing tax planning
Determining the financial impact of business decisions, analyzing cash flow, and evaluating the overall financial health and profitability of a business are keys to a successful business.
Benefits of Outsourced Accounting
While there are many advantages to hiring outsourced accounting services for your small business, the following are the most important ones that apply to all organizations, regardless of the size or industry:
1. Save Time and Money
Hiring an employee is a very difficult process. It takes a lot of time to find someone that fits your job requirements and your company culture. Also hiring employees is costly as you need to consider purchasing laptops, allocating a portion of your office rental, increasing your HR and supervisory requirements, etc. With Outsourced Accounting, you eliminate this tedious recruitment process. The monthly costs are also fully predictable and most of the time lower than recruiting an internal employee or team.
2. Make it Easier to Scale
As your business grows and changes, your accounting needs will probably change as well. But it may not be possible or ideal to create a full-fledged internal accounting department. If
you outsource to a flexible partner, you won’t need to.
3. Access to Expert Advice
If you are not an accounting professional yourself or if you hired an inexperienced person due to budget constraints, then there is a high probability of errors and financial reporting mistakes being made. This can lead to high penalties and even put the entire business at risk. By teaming up with an Outsourced Accounting firm that is up to date with every latest regulatory change and requirement you will be able to minimize errors and tax payables.
4. Enhanced Data Protection
Most finance and accounting procedures have gone digital, resulting in vast confidential data. It is a company’s responsibility to protect this data, which could be internal, or client related. On the other hand, small firms and start-ups often make preliminary steps to secure this data, leaving them vulnerable to cyber-attacks and data theft.
The lack of security features in accounting systems implemented by a corporation is the primary cause of these data security breaches. Professional accounting firms typically use secure cloud servers that have advanced capabilities such as:
Data storage on cloud-based, secure servers
Offers enhanced data recovery
5. Automation and Cloud-Based Technologies
Using the services of modern Outsourced Accounting providers will give you access to your real-time financial performances through automation and cloud-based technologies. Some of the smart tools include:
Automated Bank statements synchronization with your bank
Smart Bank Reconciliation tools
Automated Financial Reports
6. Reduce Errors
If you’re not an accounting pro, it can be easy to make financial reporting mistakes. These can leave you overpaying in taxes or, even worse, underpaying, which can get you fined by the IRS. For many growing companies, having experts on their side is a welcome layer of protection against such issues.
Reach Out for Help
Everyone deserves a supportive team of people who care. Cloud Bookkeeping Inc’s team provides monthly bookkeeping and accurate financial reports. We’ll give you financial visibility throughout the year and deliver insights to make strategic business decisions.
Get in Touch with Us for Our Services
We don’t just say it, we deliver – our work speaks for us! Contact us for 30 mins of free consultation and opt for our Online Bookkeeping Service.
Cloud Bookkeeping, Inc.
3281 E. Guasti Road, Suite 700
Ontario California 91761
Tel: +1 (909) 952-3804