Outsourcing accounting services bring many benefits to business owners. According to The Outsourcing Institute, businesses choose to outsource to improve their core business focus, to avoid the risk and costs of hiring more employees, and to gain access to outside expertise that they could not afford otherwise. Outsourcing accounting can help your business in the following ways:
1. Reduce Labor Costs Significantly
Outsourcing an accounting team is generally less costly than hiring someone in-house. Recruitment, hiring, and training an in-house accountant can come at a high cost for an organization. It takes 8 to 26 weeks for an employee to achieve full productivity, research has shown that the average company loses anywhere between 1-2.5% of their total revenue on the time it takes to bring a new hire up to speed. Outsourcing accounting services will also save you time and alleviate you from paying salary, payroll taxes, benefits, time-off, insurance, etc… In addition, outsourcing accounting services will allow your business to concentrate on bringing in more business and/or adding value for your customers.
2. Increased Controls & Compliance
As a business owner there are many items to keep track of, many of these items include deadlines and accounting guidelines set by the Internal Revenue Service (IRS); both of these can change continuously as we have seen in the last year due to the pandemic. Keeping track of accounting regulations can be overwhelming and for a subject matter expert team like CPA by Choice, it is what they are trained for and work on 24/7. Moving your accounting to a third-party reduces the risk of non-compliance and also allows for greater internal controls, it can potentially reduce the chances of internal fraud.
3. Up-to-Date with Technology
In today’s modern world it can be overwhelming, and costly, to stay up-to-date with applications and knowing which ones are more suitable for your business. We work with businesses like yours and we can advise on what works best for your business. Moreover, it is important that your business is able to maintain client confidentiality and data protection, we make sure that your financial information and data is handled and stored securely.
4. Work with Accounting Experts
When you outsource an accounting team you are hiring a team that is specialized in the subject and brings many years of experience. With access to the outsourcing company’s expertise, your business can rely on tasks being performed faster and with more precision than having to recruit the professionals to hire and train in-house.
5. Additional Benefits
Outsourcing an accountant provider can help your business with other services, such as taxes, payroll management, software applications, recruitment, business referrals, etc… In addition, we can provide financial reporting that you may need for your meetings, for your investors, or for anyone whom it needs to be presented to. We can also help you manage your business effectively from a financial standpoint so that you have better control of income and expenses to avoid any financial troubles. Last but not least, an accountant can make you more money. How so? Tracking your invoices helps you know who your top clients are and which products/services are moneymakers.
Whether your business is a single-employee organization, or 2000 employees, the benefits of accounting outsourcing are countless. Allow us to take on the accounting responsibilities of your business. Still not sure which services you need? At CPA by Choice, we are available to answer your questions, feel free to call us or send us a message.