Today’s remote work environment benefits the labor economy in many ways. Not only has it created an arena of happy workers who thrive on offering professional services from wherever they happen to be, but it also provides small business owners with more choices when making decisions that affect the bottom line. Whether trying to fill a new role within the company, looking for someone to help with marketing tasks, or getting temporary help during crunch times, remote workers are there to fill the bill.
Outsourcing Offers a Wide Array of Services
One mission-critical task that small business owners rarely think of outsourcing is accounting services. The common perception is that every business should have an accountant or CPA on staff to be successful. But that’s not necessarily true. With secure internet connections, accounting services can be outsourced as easily as marketing or customer service tasks.
Today’s accountants are flexible, meeting clients’ needs in the most convenient manner for them. And many do much more than prepare individual tax returns in the spring.
If you’ve never considered outsourcing your accounting functions, here are a few pros and cons to consider. You may discover that outsourcing your accounting work makes good financial sense for the business.
Here are the Pros
#1. More Cost-Effective
Outsourcing accounting services is often more affordable and more practical than hiring an in-house accountant for the job. Outsourcing eliminates the overhead costs associated with hiring an employee. Vacation time, healthcare, retirement benefits, and sick days take a toll on the bottom line. Also, outsourcing often gives you access to the expertise of an entire team, which reduces the risk of non-compliance and unreliable financial data — a crucial advantage for new or smaller businesses.
#2. Proactive Approach
When you started the company, you probably didn’t start it with the intention of becoming an expert in financial management. However, you may be filling that role out of necessity. Instead, your primary focus as the owner should be on the growth and development of the company.
Here’s where an outsourced accounting team can be a valuable asset. With a proactive approach, accountants can identify potential issues before they become major problems, keeping you informed about anything that might impact cash flow or expenses. This level of oversight provides peace of mind and gives you the confidence to make informed financial decisions. It also frees up your time to run the business rather than managing these details.
#3. Helps Prevent Fraud
Unfortunately, fraud is all too common in small to medium-sized businesses where one person manages the accounting. It’s easy for someone to manipulate the books when no one else is looking. This behavior sometimes goes on for years without detection.
Outsourcing the accounting function puts multiple sets of eyes on your financial transactions and accounting processes. Your outsourced accountants are there to provide oversight and ensure the rules are followed, regardless of what’s happening within the company. Fraud can’t be eliminated entirely, but a dedicated team of experts in accounting best practices is far more likely to spot anomalies and bring them to your attention.
Weigh Them Against the Cons
#1. Hidden Costs
Scope creep is a common occurrence in many areas of business. Outsourced services are no different. Before moving forward with any accountant or CPA, it’s crucial to establish clear expectations. Define the scope of the project before committing to anything in writing. This will help minimize the likelihood of incurring additional costs along the way.
#2. Loss of Control
Handing over control of financial records can be uncomfortable for any business owner. After all, you’re used to having this information at your fingertips because you’ve been managing it yourself!
To ease the discomfort, establish a detailed onboarding process with your outsourced accountant to define roles, policies, and procedures. This sets expectations and keeps the line of communication open going forward. Choose an accountant you trust, and then let them do the job you’ve hired them to do.
#3. Fear of Letting Go
Some business owners worry about handing their financial information to someone who’s not located on the premises. But if you think about it, it’s no different than using an in-house accounting department located in an office in another city. Establishing clear lines of communication is the key to developing a productive, successful working relationship with anyone, regardless of where they are geographically.
Adams Accounting Solutions Wants to Be Your Trusted Accounting Partner
At Adams Accounting Solutions, the success of your business is as important to us as the success of our own. We’ll work with you to ensure all financials are accurate, accounting guidelines are met, and anything that could impact the business from an accounting standpoint is identified and controlled for.
Give us a call for more information on outsourcing accounting services for your small business. We’ll take the burden of financial management off your shoulders so you can focus on running the business!
