Successful business owners will tell you that excellent accounting is the secret ingredient to growing their business. Why? Because having access to the right financial information helps drive better business decisions. Many business owners have discovered the advantages of outsourcing non-core functions, and accounting and payroll services are among the most cost-effective functions a small- or mid-size business can outsource. Outsourced client accounting services (CAS) fills the growing need for general ledger maintenance, accounts receivable and payable services, bank and credit card reconciliations, month- and year-end closes, and more.
Business owners need a clear picture of the economic health of their business. That requires accurate, timely, and accessible financials. These services can be done by internal staff, but hiring outsourced professionals can have many benefits.
Here are 10 reasons why you could benefit from outsourcing your accounting services.
1. Access at your fingertips
Whatever your line of business, having real-time access to your financial data and reporting is vital. Your outsourced CAS provider will use cloud-based accounting software and applications, enabling you to access your financial data from anywhere, even your phone.
2. Saves you time
If you spend days preparing your books for tax time—or even more costly, a CPA has to shuffle through all the paperwork at year-end—it’s going to take you more time and money to do the work than to outsource to professionals. Your time should be spent growing your business and engaging with your customers.
3. Prepares you for tax time
When you outsource your accounting services to a team that is skilled in preparing financial statements for tax time, you’ll be assured that your financial information is correct and provided to your CPA on time. Tax payments will be made on time and your dedicated team will watch out for situations that may affect your taxable income throughout the year.
4. Knowledge and experience
Having a skilled team of bookkeepers and accountants who fully understand your business and its accounting processes will lead to timely and accurate financial statements, bills and taxes being paid on time, and overall compliance.
5. Your business needs YOU
No one else can run your business like you do, so you need to be there for it and for your customers. You need to nurture your business and focus on its growth, operations, inventory, and customer relationships. Give it your time and energy and save the accounting for someone else.
6. Built-in resource system
Sometimes running your own business may feel like living on an island. You do so much on your own. When your business starts to grow, or you want to spend time in other areas of your life, outsourcing your accounting effectively expands your team. You have experts who know you and your business to consult with and train you in areas where you may need help. You will gain new perspectives and learn how to improve and streamline your accounting processes.
7. Cash flow is king
Cash flow is an indicator of the overall financial health of your business, and an accounting services team can help you track and manage it. Understanding your cash flow gives you the information you need to run your business and what is available to invest to grow it.
8. Money saver
Outsourcing your accounting is an investment that generally saves money, perhaps a lot of money. Engaging accounting professionals can lower your risk of an audit, avoid late payments, tax penalties, and cash flow issues. You will also save the overhead expenses for internal staff.
9. Improves processes and efficiency
Your outsourced accounting professionals will work with you to upgrade and improve your business’s accounting processes. They will set guidelines, create rules for approval processes, establish controls, and automate processes, where possible.
10. Support if you are seeking investor funding
Investors appreciate transparency. Clear and concise books and well-managed financial documents are essential if you are seeking investor funding, or selling your business.
If outsourced accounting services could help your business, contact R&A. Our CAS team will be happy to assist you.
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