As a business owner, you’re always looking for ways to maximize your performance and production. In many cases, this means delegating mundane tasks to other employees.
For many businesses, there are always time and cost constraints that hold you back. So you’re always on the lookout for new and innovative ways to streamline your efforts. This is especially true for the larger companies.
If your business is quickly growing, you’ll soon notice how much attention your financial department needs. This is one area you can’t ignore. For one, you could end up in tax trouble with the IRS. And two, you won’t be able to tell if you’re earning a profit or running your business into the ground.
But what if you don’t have the time or manpower to maintain your finances? This is where outsourced accounting services come in.
Let’s review the benefits of taking this route.
1. Save Time, Money and Minimize Overhead
Now, this benefit alone will capture the attention of business owners across all industries. The race to reduce overhead is always on. So if there’s a clearcut way to do this, why not take the chance?
When you outsource accounting services, you’re no longer paying employees for 40-hour work weeks to manage your finances. Also, you have to factor in the cost of properly training an internal accounting department.
And let’s not forget the expenses associated with employee benefits, accounting software, office supplies and hardware. Then there’s always the potential of financial mistakes, which come with negative (and costly) consequences.
Goodbye to Extra Costs
All of these extra costs are out the window when you hire outsourced accounting services. On this end, you’re guaranteed a professional that knows what they’re doing. In most cases, the accountant has many years of experience, which should give you peace of mind.
As for time management, this too improves when you’re using outsourced accounting services. This is because you’re spending fewer hours daily overseeing bills and payroll. This will free up valuable time you can use to focus on growth and expansion.
Business owners have a lot on their plate, which typically includes maintaining business goals, growth and managing the daily operations.
2. Get Access to Expert Accounting Resources
This benefit is especially important for smaller businesses that lack the tools to properly run their own finance department. And in most cases, there isn’t anyone on your team that’s a master accountant.
So not only do you lack the tools, but the skill set as well. Sure, it’s possible that someone in your small business has some accounting experience or knowledge. But not enough to keep your company afloat and out of trouble with the IRS.
By using outsourced accounting services, you will have access to a team of knowledgeable professionals. No more worrying about whether your books are up-to-date and accurate.
And this will help to reduce chances of your business being subjected to penalties due to underpayments and other inaccuracies.
If you decide to buy outsourced accounting software that automates everything for you, even better. This way, you won’t have to worry about being a knowledgeable accountant. This is another way around manually managing your finances.
3. Reduce the Risk Factor
Likely, this is one of the top reasons you’re worried about hiring an accounting team for your business. No one wants to land in hot water with the IRS and for good reason – they will penalize the heck out of your company.
And when that happens, you can expect to pay hefty fines or face possible jail time. It’s a scary reality indeed, which calls for a real solution.
Unfortunately, there are various risks associated with business finances. This includes having money stolen by trusted employees. It can be hard to enforce a solid checks and balances system without putting your employees at odds with your business.
That would only reduce workplace morale, which is never good for production and growth. The only way to get around this is with trusted outsourced accounting services.
Again, you’re saving money, time and eliminating the stress associated with managing money. You’re getting access to real experts and tools that can handle all your financial reporting. Plus, you have professionals who can audit your financial trail to ensure everything’s on track.
This, in turn, minimizes the risk of internal fraud and can improve trust and compliance. So it’s a win-win situation for you and your employees.
4. Get Access to Financial Data Anytime and Anywhere
Now, that’s the beauty of cloud-based accounting applications. You’re able to get access to the files and reports from wherever you are and at any time, as long as you have internet access.
This allows you and others you give access to, to see financial data and records in real time. Some of the things you can see include updated cash balances and expenses. With total visibility of your finances, you can feel confident and make more informed business decisions.
5. Rest Assured Your Finances Are in Order
It doesn’t matter whether your business is flourishing or tanking. Knowing exactly where you stand in your finances offers peace of mind. As a business owner, you have to be confident in the decisions you make for the company.
It’s difficult to do this when you’re unsure of your financial standing and future. The accuracy of your reports and total visibility allows you to make tough calls.
With outsourced accounting services, you are guaranteed accurate reports. This is thanks to the elimination of human error. One thing accounting software doesn’t do is make human mistakes.
There’s no threat of fraudulent activity and you can speak to a team of professionals to answer any questions you have. This is the top solution for companies of all sizes.
The confidence and security you’re awarded make this option well worth it.
6. Become Proactive and Scale Your Business
What if you could reduce the amount being invested in human resources, technology, and infrastructure? And at the same time increase production?
With these conditions, you’re able to easily scale your business and react to much-needed changes more quickly. Staying ahead of the curve is difficult when you’re distracted.
Outsourced accounting services can help free your mind from the worry of your business finances. For instance, say your company has a surge in activity. If you’re outsourcing your accounting, you can take this adjustment head on.
Some surges may be seasonal and others due to business cycles. If your internal resources are free to handle the influx, then your business has a better chance of growth.
7. Automate and Go Green
For some businesses, going paperless is a big deal. If you’re a company that takes pride in being eco-friendly, then this is another thing you can be proud of. Using outsourced accounting services means reducing the use of paper since everything is on software.
On that note, you’re reducing wasted paper, space, and your carbon footprint. If you can go paperless with other activities, you can forgo the use of fax machines, printers and the like.
8. Keep Your Finances Private and Confidential
One way to think of it is, the fewer people you let in on your finances the better. That’s the great thing about outsourced accounting services. You’re using software, which means fewer people need to look over your books.
Manually tracking your finances means increased chances of your data being leaked. When your finances are being handled by outsourced accounting services, your data is locked up tight.
Your files are encrypted and not shared with any third-parties. So that’s definitely great news for the integrity of your business financial data. Imagine what your competition would do to get their hands on that!
9. Choose to Expand or Cut Back
This is a decision every business has to make at some time or another. In fact, this is something you have to answer each year if you want to stay afloat. There are certain circumstances where it’s better to cut back expenses severely.
At other times, it’s best to take advantage of growth opportunities. This is easier to determine when you have accurate reporting of your income and expenses.
10. Ensure Payroll is Done Timely
Let’s face it, your employees like your company, but they’re mainly there to get paid. If you’re not cutting checks on time or have inaccuracies in hours worked and bonuses earned, then you’re going to run into problems with productivity.
It’s very important to ensure your payroll is done correctly. Outsourced accounting services can be used to ensure payroll is direct deposited on time and with accurate numbers.
Is it Time to Cross Over to Outsourced Accounting Services?
If you’re looking to increase productivity and growth and reduce costs, then the answer should be yes. At ScaleFactor, we offer excellent outsourced accounting services.
Our solutions include bookkeeping, bill pay & invoicing, compliance and forecasting. In other words, we offer a complete package to streamline your financial reporting and decision-making.
If this is something your business can use, don’t hesitate to reach out. Contact us today to find out how our services can benefit your company.