When would be a good time to outsource the accounting work of your company to one of the accounting service providers? Let’s go through the reasons behind.
Let the professionals do the professional work. The fact is accountants know accounting and a few more areas such as tax codes and the relevant laws. When you outsource this specific work to a professional accounting firm, you know that you have hired a team of experts in this field of work.
It can reduce cost. Cost is a very important factor when running a business. At least many entrepreneurs have become successful or have helped their business survived when they know exactly how to cut cost, especially unnecessary cost. When you outsource your accounting work, you are in practice saving money by eliminating some costly benefit packages to a full time employee. This also lets you save on payroll cost and productivity cost. Usually entrepreneurs may save up to 40% of cost.
It allows you to use your time better. Management of your precious time is important when your end goal is to take your business to success. You can free up your valuable time which could be better spent elsewhere (in your business). For example, your time may be better to spend on acquiring new and big customers. These new customers may well contribute much revenue to your business.
Reduce fraud. Usually small businesses are easy targets to be victims because their accounting and auditing were mis-handled. The fact behind is that most small businesses do not have access to a controller or chief executive officer (CFO) who are able to look at the key performance indicators and metrics. These metrics may show abnormal activities in the billing data and transactions. When your accounting operation is outsourced, you would get controller or CFO to look for signs of fraud and apply fraud protection controls.
Make it scalable. The risks to expand and grow your business quickly would become much lower. Professional accounting service providers could give you the list of options (i.e. where to cut cost, where to invest more so you can earn more, etc). It frees up your hands when an accountant behind you can tell you exactly where you can earn money and exactly where you can make more profits.
Finally – It is your choice. For accounting service providers, you have the option to choose one that provides all-in-one services including auditing, tax, and payroll services. These providers would be professionals to use software (such as Xero accounting)