Why would a business outsource their high level accounting functions? Here are 7 reasons this may well be a really smart business move:
1. Reduce Overhead Costs and increase efficiencies: Due to the specialized nature of the work, several employees are often needed to operate in-house accounting. In addition, accounting procedures may require businesses to hire additional personnel to insure task separation and internal controls. Outsourcing proves to be effective at reducing overhead because it eliminates the need for extra benefits, training, office equipment, downtime and taxes, just to name a few.
2. Improve Budgeting Practices: Does your budget need to be refined? Companies that deliver outsourced high level accounting services provide expert advice on future planning and money management. Oversight from outside experts can help you identify financial problems before they occur, and ensure the financial visibility of your company.
3. Improve Cash Flows: Do you run a successful business but sometimes struggle to pay the bills? Cash shortfalls can be stressful, but outsourcing can allow your business to take advantage of everyday accounting practices to help manage cash shortfalls. For example, a professional accountant can improve your cash flow by skillfully delaying disbursements while aggressively pursuing unpaid debts.
4. Save time and get convenience: How much time has your accounting team wasted trying to solve a complex (or simple) accounting problem? Have you or your senior management team ever spent time bookkeeping? Let the experts take care of the accounting and free management to tackle the duties in their job descriptions. Outsourcing allows you to stop wasting valuable time on accounting and focus on business strategy.
5. Receive sound advice: As opposed to hiring a “general” bookkeeper, outsourcing provides an opportunity to align yourself with a professional who has experience with your type of business. Companies that provide outsourced accounting services employ knowledgeable personnel with expertise in every area of accounting. Accordingly, you will have access to individuals with specialized knowledge to fit your specific accounting needs.
6. Expand Staffing Flexibility: As mentioned earlier your time is better spend selling your services or product than it is working on the accounting. This is also true for your senior management. Outsourcing allows you and management to focus on developing new business opportunities and strategies.
7. Get real-time Access to your Data: An outsourced accounting company will be able to assist in timely decision-making through technology. For instance, cloud-based accounting applications like Sage Intacct http://www.sageintacct.com/ give you access to up-to-the-minute financial records on a web browser. The use of technology offers easy access to data, aiding day-to-day and strategic decision-making.
In summary, as your business grows it might be worthwhile to explore outsourcing your high-level accounting functions before you decide to hire an in-house controller or CFO. It may make a huge difference in the success of your business and your overhead costs.
Michaud Accounting Solutions http://www.michaudaccountingsolutions.com provides outsourced Controller and CFO services as well as cloud-based accounting software implementation services.