Benefits of Outsourced Accounting
Managing the company’s accounting process and needs can be a difficult and time consuming task. For this reason, many companies look at hiring an internal resource to manage the process. While this may be effective, there are ancillary issues to consider such as cost, management requirements and other expenses. That’s why companies across St. Louis, Missouri and the region choose to outsource their accounting needs to qualified firms that can not only manage the process but leverage expertise to yield additional benefits. Below is a list of key benefits these companies realize in the outsourcing process.
- Save money. Some people mistakenly think that hiring an accounting firm to take care of the books will cost more than hiring an internal person, but the fact is you’re more likely to save Instead of paying full-time or part-time wages and benefits to an employee – including insurance, payroll taxes, unemployment taxes, paid time-off, etc. – you pay only for the time you need from a staff focused solely on your financials. You won’t have to worry about lost productivity from office distractions, staff meetings, and vacations or providing a work space and equipment needed to do the job in-house.
- Bring a team of experts on board. Managing your financials is the one area of the business with which most owners are unfamiliar. Effective financial management requires a deep understanding of accounting best practices, current laws and regulations, and compliance requirements. By bringing in an outsourced provider, you have access to the right set of knowledge for tasks from payroll and accounts receivables to financial statement analyses and tax planning. An accounting firm brings experience from a variety of client situations that other providers simply don’t have.
- Minimize risk. We have found that well-meaning business owners will often leave tasks such as bookkeeping until the end of the quarter or, worse yet, the end of year. While it’s understandable to want to control costs and manage the function themselves, it’s essential to understand the risk of errors and other issues that can arise from such an approach. When you outsource, you can minimize the risks typically involved with relying on your own knowledge and timing or in-house staff.
- Access the best accounting software and systems. Keeping up with the latest version of sophisticated accounting software often makes little sense for emerging companies, especially if they have limited needs. By outsourcing, you’re essentially purchasing those tools indirectly without having to do the system research, licensing, or funding. The best software will also keep your accounting files organized and backed up for many years should you ever get audited by the IRS.
There are significant benefits to be realized from leveraging the experience of a seasoned accounting firm to manage your accounting needs. Take time now to assess your current accounting and bookkeeping practices and determine whether process improvements would benefit operations and your peace of mind. If so, Anders is here to help! For additional information, contact Anders.