It might be tempting to try and do the accounting yourself. But getting a team of experts could save you precious time and resources.
Some businesses have internal solutions for financial management and in smaller companies, even the owners themselves can weigh in and tackle the task.
Such an approach could work for the business for a while but it might not be the best option, especially once the company starts growing.
Here are the essential reasons why outsourcing might be a good idea.
Reason #1. Time Efficiency
You (and your team) already have a list of responsibilities. If you don't have a dedicated accounting person, you and / or your team will probably spend their precious work hours taking care of the financials as well.
The time spent on accounting tasks means you get less time to focus on your company's vital operations, such as improving sales or bringing in new leads.
Additionally, if neither you or your team are trained or experienced, dedicating company resources to such tasks can be considered wasteful. You're diminishing your business capacity and distracting your team with a job outside their skill set instead of focusing on your strong points.
Outsourcing will save you time and get your financials in order sooner. Simply put, leave the accounting to the professionals.
Reason #2. Decreased Costs
If you consider hiring an employee solely for accounting, or you've already done that, notice that outsourcing could save you a significant amount of money.
There are indications that companies outsourcing their finance functions save around 40% of the costs compared to those that have in-house accounting.
The calculation is very straightforward – by outsourcing your accounting, the only cost you have is the service price. On the other hand, keeping a full or part-time employee comes with additional expenses, not to mention taking away various resources better spent elsewhere.
Reason #3. Lesser Risk of Fraud
Your business is unlikely to have the financial controls in place that a professional accountants will have. Anti-money laundering checks will be second nature to an accountancy practice and they will also have the experience to spot fraudulent activities from your suppliers, clients and employees
Reason #4. Professional Service
Professional accountants have an obvious advantage in financial dealings - they know accounting. Your business will be in safe hands with using a service that's well-familiar with all relevant codes and laws.
From a technical standpoint, an accounting agency will have every resource necessary to perform the job - from expert employees to the best accounting software. These resources won't be available to your company without additional expenses and hefty time investment.
Finally, a professional accountant could offer you some useful, impartial advice that you couldn't get from anyone other than an expert. Likely they will also ensure you pay the right amount of tax, not a penny more or a penny less.
Focus on Business, Not on Accounting
Once the burden of accounting is lifted from your shoulders, you can expect work efficiency to improve in several ways and also relieve the stress of having to worry about your finances.
Outsourcing your accounting is cost-effective, saves time, and lets you focus on the more important matters where you and your team can be the most productive.