When you started your business, it was likely because you had unique expertise or a big idea — and it wasn’t related to accounting. Most business owners aren’t accountants, yet they take on financial roles when they start their business. They try to do it themselves or they hire and manage people for the tasks, without really knowing what their team should be doing.
But, there is a better, easier way to manage the accounting department in a growing business — and it can even help you save time and money.
You can outsource your accounting.
Let’s look at the benefits of outsourcing your accounting to see if it might be time for your business to bring on an accounting partner.
What Happens When You Outsource Your Accounting?
When you outsource your accounting, you bring on a partner who takes over accounting tasks such as:
- Payroll processing
- Weekly bookkeeping
- Monthly financial reporting
- Month-end accounting entries and reconciliations
- Vendor bill payment
- Customer invoicing
- AR collections
Every outsourced accounting partnership may look different. Businesses and outsourced accounting agencies can work together to determine which tasks the agency will take on.
A business may choose to only use the agency for select tasks while maintaining some accounting tasks in their office or they may pass all financial tasks over to the partner. Flexibility is just one of the many benefits of outsourcing your accounting.
The Benefits of Outsourcing Your Accounting
If you aren’t sure if outsourcing your accounting will help your business, consider these benefits that come with bringing on an outside team of financial experts.
#1) Get access to expert accounting and financial advice.
You can hire one outsourced accounting partner and get a full team of experts that include bookkeepers, accountants, certified public accountants (CPAs), and in some cases, tax experts, financial planners, and chief financial officers (CFOs).
#2) Set up better accounting processes.
When you work with a team of experts, you get access to their expertise and processes. Rather than trying to figure out how to set up your accounting and reporting systems on your own, you get a team of experts who can guide you through the process.
Related: Understanding The Value of a CPA and Accurate Spreadsheets
#3) Maintain accurate, up-to-date financial reporting and insights.
You may not have the time to update your books when running your business. When business is busy, your books may fall behind — which can create even more work and confusion.
Working with an outsourced accounting partner prevents this issue. The outsourced team can keep your books up-to-date and also help you develop financial reports and plans. You can work with a partner who can help you:
- Develop real-time reporting.
- Build a business budget.
- Manage cash flow.
- Set up financial forecasting.
- Implement tax planning.
- Create a profit plan.
Free Guide: Build a 12-Month Plan to Make Your Business More Profitable
#4) Avoid errors and inefficiencies.
When someone is managing your accounting without the right resources, time, or expertise, issues may arise. Errors may occur, and inefficiencies may go unnoticed. An expert team can ensure that your books are accurate, up-to-date, and following best practices and methods.
#5) Be prepared for tax season.
Having your books in order provides benefits all year long — and it is especially helpful at tax time. When you have professional accounting reports, it will be much easier to pull the information you need to file your taxes.
Even better, if you work with a financial partner who also offers business tax preparation, you can go into tax season with a plan that may help you increase your deductions and decrease your tax liability.
Related: The 10 Tax Mistakes You Don’t Want Your Small Business to Make
#6) Save money on staffing.
If you were to hire all of the people with the expertise you need to manage your accounting, you may need a fully staffed financial department. Hiring a team means you need to pay salaries — in addition to insurance, retirement, paid time-off, worker’s comp, and payroll taxes.
If you work with an outsourced accounting firm like CFO2U, you don’t need to hire a team of accounting professionals. We’ve already done it. You get the benefit of working with our team of financial experts. You can meet a few of them here.
#7) Easily scale with consistent support.
As your business grows, so will your accounting needs. When you work with an outsourced accounting agency, you don’t have to worry about bringing on a new person or expertise as your needs change. You don’t need to worry about the cost of hiring a new team member — which on average can cost $4,000. You can simply adjust your partnership to get the resources you need.
Plus, you will never be left without support as you don’t need to deal with hiring and HR issues. There is:
- No hiring.
- No time off.
- No call-outs.
- No quitting.
#8) Get more time to run your business.
If you are buried deep in your books or left without enough cash to accomplish your business goals, you’re going to have a difficult time growing your business or living your life. An outsourced accounting team takes financial tasks off your plate and gives you the clear insights you need to run your business — and live your life.
At CFO2U, one of our primary goals is to give you the time back to run your business and live your life. We aim to be a partner in your business so you can get back to the things that matter.
Learn More About Outsourcing Your Accounting
You likely didn’t start your business so you could be lost in financial records and accounting software.
If you’re spending more time (or more money) running your accounting department, it might be time to consider if outsourcing your accounting is the right option for you.
If you’d like to see if bookkeeping services by CFO2U offer what you need, let’s talk. Schedule a discovery call with our team to see if CFO2U can provide the accounting support you need for your business to thrive and grow. Schedule your call today.
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