Bookkeeping Pitfalls

Five Benefits Of Outsourcing Your Business Accounting Needs

Audits and tax returns are not all that CPA firms do. They also can help with your day-to-day accounting-related needs. Everyday tasks such as bookkeeping, budgeting, payroll, and sales tax filings can be outsourced. Is it in your organization’s best interest to outsource its accounting needs? Here are five potential advantages to consider when evaluating this decision.

1. Professional advice. Outsourcing to an experienced CPA firm provides access to professional guidance related to tax, legal, and financial matters. This makes it easier to remain compliant with rules and regulations and avoid costly mistakes due to a lack of knowledge or errors in interpreting complex regulations.

By engaging a third-party firm, there’s a second set of eyes on your company’s books. This can provide peace of mind that your books accurately reflect the performance of your business. In addition, a CPA can help streamline your accounting processes and help record complex transactions correctly.

2. Scalability. As your financial situation evolves, you can dial up (or down) the services provided by your CPA. For example, a start-up that outsources its accounting needs wouldn’t need to worry about outgrowing its bookkeeper over time — or training that individual to take on more advanced accounting and tax needs. Likewise, if you embark on a major financial project — such as a launching a new product, building a new factory, or merging with a strategic buyer — your CPA has the expertise to help you achieve the best possible outcome from a financial and tax perspective.

Outsourcing also can also be a viable temporary solution if you unexpectedly lose your chief financial officer. This can provide breathing room while you search for a qualified replacement in today’s tight labor market.

3. Cost savings. Outsourcing can save you money on payroll taxes and insurance costs associated with hiring an in-house accountant. Also, if your business doesn’t require full-time accounting personnel, outsourcing can provide the specific, service-related functions you need.

4. Efficiency. When you transfer accounting functions to your CPA, your management team has more time for core marketing, product development, and other activities. It also frees up resources for higher-value tasks that can increase cash flow and optimize efficiency within the organization, such as negotiating with prospects or building deeper relationships with existing clients.

5. Enhanced confidence with stakeholders. A CPA firm’s involvement can instill confidence in lenders and investors if you intend to borrow money or solicit investment capital. It shows that your firm is committed to maintaining accurate business records and has access to the expertise needed to address complex issues.

Contact us if you’re considering outsourcing your daily accounting tasks, either permanently or temporarily. We can tailor a cost-effective service plan that works for your current and future business needs.

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