4 Ways Small Businesses Benefit from Outsourcing Bookkeeping & Accounting Functions
Every company needs accounting services, whether you provide them yourself or pay someone else to do it. Many small businesses start out doing their own accounting in order to save money. But over time, this balance begins to tip, and spending time on your books ends up costing you more money than you save.
How does outsourcing bookkeeping and accounting benefit your company?
1. Greater Expertise
If you or an employee has been handling your books and payroll, it’s likely that your skills are not on par with professional accountants and bookkeepers. You may have gotten by thus far, but you will get better service from small business tax accountants.
Because you are untrained, you may miss discrepancies and other errors in the books. Additionally, it is difficult for business owners to stay on top of changes and trends in the accounting industry — something that professional small business accounting firms are required to do.
When you hire a small business accounting firm, you are able to make better business decisions, because you have the numbers to back you up, rather than just acting on instinct. This gives you a more accurate picture of your business and a better handle on your future.
2. Reduced Risk
Managing your own books can be risky, because you can make mistakes. It’s natural for small business owners who aren’t trained in bookkeeping and accounting to make mistakes, but it can cost you in a number of ways.
Sloppy or incorrect bookkeeping can lead to tax payment errors — one of the worst types of mistakes, as it can cost you in fines and penalties. Even worse is deliberate fraud that may be perpetrated by an employee. This can involve court costs and legal fees in addition to the losses you already suffered.
When you hire a small business accounting firm, your risk of problems and audits plummets, because we ensure all entries are made correctly and taxes are paid on time. Additionally, we are able to spot fraud and other suspicious activity before it gets out of hand.
3. More Time
Time is money, and the more time you spend puzzling through QuickBooks, the less time you have to dedicate to running your business. If you aren’t an accountant, you don’t have the efficiency and the expertise of a professional. Thus, you’re wasting precious hours and possibly making errors at the same time.
Rely on our bookkeeping and accounting services for small businesses — we provide efficiency, dedication, expertise and stellar customer service.
4. Saves Money
If you are unable to continue managing your company’s books, it’s likely you will pay less to outsource the work than to hire an employee.
When you hire a full-time employee, you must pay the employer share of payroll taxes, plus unemployment taxes and worker’s compensation insurance. Additionally, many employers offer other benefits such as vacation and sick time, paid holidays and health insurance. You pay none of these when you outsource your functions to a small business accounting firm.