Updated: May 17
With changes in tax requirements, bill pay, and client expectations, small and large businesses alike are trying to improve their financial services. If you’re operating a small business and dealing with accounting on your own, you know how tough it can be.
Luckily, there’s a solution. It’s time to start outsourcing your company accounting with automated accounting software. As a result, you’ll save time, resources, and money. Not sure if you’re ready to switch to outsourced accounting?
Here are some factors to consider before taking this step:
1. You have made accounting mistakes in the past
Maybe you’ve been handling your own company accounting or having another employee do so. Whichever it is, if you aren’t using an experienced accountant, mistakes are likely to happen. There are tons of accounting mistakes that are simple to make, tough to identify, and hard to fix once they’ve been made. For new companies, one common mistake is not learning to keep proper records. When you’re busy running a business, it can be tempting to simplify your bookkeeping. Maybe you lump all of your expenses, including rent, employee pay, and office resources, into one category. Then you lump the rest into a category for profit. After all, from a non-accountant perspective, it would seem reasonable to assume that all of the money that doesn’t go towards expenses is profit. But breaking down your records into accurate categories with outsourced bookkeeping can help you better judge the success of your business. These records can also be used to create budgets or help you make changes when profits begin to drop
2. You are trying to do it on your own
Whether you’re running a small business or launching a startup, you’re likely taking on many different roles. You’re a manager, making decisions about hours and instructing employees. You’re a marketer, deciding how to promote your business. If your business operates online, you may also be a web designer or SEO expert. Not only are each of these jobs tough to learn, but they are tough to master and, most importantly, they’re time-consuming. The last thing that you need to do is the accounting work. Trying to take on your company accounting on your own is a mistake. If you don’t have a financial background, you’ll have to take the time to learn. You also need to know how to keep ledgers, balance accounts, pay taxes, and more. Company accounting is a sensitive, important area. Trying to tackle it on your own without advanced financial knowledge may cause a disaster.
3. You need an accountant but are not sure whether it should be full-time or not?
While it may feel as though your business is too small for outsourcing, that often isn’t the case at all. Over 805 small businesses choose to outsource their accounting needs. Besides paying someone to do your accounting, you also have to pay for benefits. You’ll have to make adjustments during that employee’s vacation or sick days. You’ll also have to provide them with a space and resources within your office. Also, small businesses may not have enough accounting work to require the help of a full-time accountant. You’ll need an accountant to deal with balancing accounts and paying employees. But if you only have a few employees and don’t make large purchases, it doesn’t make sense to hire someone. While you will need an accountant full-time during tax season, paying for an in-house accountant year-round may be a waste. Outsourcing your company accounting means only paying for the services you need. This will not only save your company money but also free up space in your office.
4. Your Business Needs Guidance
Outsourcing your finance needs can give your company’s finances a new direction. At the same time, it helps cut costs and improve your finances. You’ll get a streamlined approach to accounting that will save you time and money. You’ll also get expert reviews and guidance to help ensure that you aren’t making costly mistakes. Whether you’re just starting out or you’re already successful, outsourced company accounting can help. The latest technologies can take your business to the next level.