Small business owners have a lot to think about: sales, staffing, customer service, vision, growth, etc. Perhaps the one responsibility they’d rather not think about is accounting.
More and more businesses in and around Warsaw, Indiana are outsourcing accounting services in order to save time, money and gain advantageous expertise.
Outsourcing Accounting Services
Vectar Onsite CPA specializes in small business accounting services. We see day in and day out all of the rewards businesses reap as a result of our services. We handle everything from financial statement reporting to small business support, forensic accounting, and business valuation and appraisal. If you’re still unsure if outsourcing financials is the right decision for your business, here are some valuable benefits to consider.
You’ll need to be decisive about spending…
During periods of growth you’re going to spend money like crazy to survive, and you will have to constantly decide what to prioritize. Some business owners try to avoid the hassles of accounting by simply ignoring the problem. Without the solid financial insights to guide you, your decisions will be based on feelings and assumptions rather than facts. Dangerous
“I’m too busy,” they say, but no business can hide from accounting. If the tax penalties for poorly done or completely not done tax returns aren’t motivating enough, hopefully the knowledge that you have basically no visibility into the vital indicators of business health will be.
…Luckily, outsourced accounting gives you access to that guidance.
My colleague recently met with our client Assurance Property Management to hear more about their experience. What they couldn’t emphasize enough was the value they found from having the collective wisdom of an entire team of accounting experts on their side.
Sure, there are online tools out there to make the process less burdensome, but even “automated tools” require extensive data input and difficult judgment calls. And while you might think that a part-time bookkeeper might solve your problem, it really depends on your needs, and there are downsides there too.
Here are the Top 5 Reasons to Outsource Your Accounting
1) Focus on Growth
This may seem obvious to some, but every minute you spend on your books is a minute you aren’t growing your business. There are plenty of accountants and bookkeepers out there who can do your books better and more efficiently than you, but no one can grow your company better that you can.
It’s time to show outsiders (aka investors) they can depend on you:
Even the wealthiest financiers are going to feel vulnerable when they invest in your company. At this point you may have shown your potential, which may be enough for them to believe in your idea. But they’ll still want to see you’re thinking ahead, anticipating obstacles that could stand in the way of your success and getting them a solid return.
Improve Accounting Efficiency
Outsourcing accounting services to a qualified team of financial experts automatically gives your business a leg up when it comes to efficient accounting services. Certain technologies, platforms and programs are available to help improve efficiency, accuracy and overall insights provided by accounting data.
So, while you focus on growing, selling, hiring and raising more money, your outsourced accounting team can handle all of your Invoicing (A/R), billing (A/P), manage your vendor relationships, issue your financial statements.
Accountants are keen to these industry improvements and as a result your business benefits.
A recent Ovum study assessed over 100 large companies in the US, Canada and the United Kingdom. Researchers found that businesses outsourcing accounting services had something in common, almost all CFOs mentioned outsourcing F&A tasks to improve overall efficiency.
2) Generate More Revenue
Inefficient internal bookkeeping processes can be a time waster for everybody in your organization, and time wasted is time not spent building revenue.
If you don’t outsource financial and accounting services, you’re paying a team of people to run an in-house financial department. Hiring a team of qualified people to handle finances full time may be cost-prohibitive, which is why many businesses leave all financials to one person. This may seem like a good way to save money but it leaves you susceptible to a lot of costly mistakes. Hiring less experienced people to manage business accounting could also save you money, but that doesn’t mean the results are going to be good.
Objective accounting keeps you honest inside and out:
A great outsourced accountant understands the weight and longevity of your decisions. They aren’t going to let you go down a path without being realistic and reflective about your company’s performance. Just like you can’t bullshit your investors with vanity numbers, a good outsourced accountant will be there to help you evaluate and critique your strategy’s performance and advise on smart tweaks to make along the way.
Save Time, Focus On Building Your Brand
Taking care of accounting in-house is time consuming for you and your staff. You could get a lot more done in terms of expanding your business by freeing your office from most financial tasks. Instead of hiring an entire team to take care of finances, you could hire a new social media team to generate buzz over a new product or campaign.
As a result, you will be making more money thanks to increased customers. Even better, our team of financial experts is there to help your business make the most out of increased profits. Your outsourced accounting team will set up new efficiencies to reduce the number of touch points with each accounting item (check, invoice, bill, etc.) and allow your entire team to spend more time performing revenue generating activities.
3) Enjoy the Power of Teams
Individual full-time or part-time bookkeepers can be great assets to a company, but they can also be a liability. It’s never good to have such important information and processes handled by one person.
A personal fortune teller or crystal ball:
If starting a business was predictable, everybody would be an entrepreneur. But every business is going to be a unique adventure, which unfortunately makes it virtually impossible to create the comprehensive guide to scaling safely. One thing that’s certain: If you’re inexperienced, your fiscal obligations and tax responsibilities will seem to appear out of nowhere.
Working with an outsourced accounting team, you are protected against the risk that your bookkeeper may move, quit, go on vacation, get hit by a bus, or get (gasp!)…pregnant.
An outsourced controller or CPA can anticipate your roadblocks and opportunities:
With all that experience under their belts, they’ll seem to have an uncanny ability to predict potential issues you may have never even heard of or would be likely to overlook. This includes being one step ahead of your investor’s potential questions and arming you with the information they’ll need to invest in you.
You Assume Less Risk
When working with a reputable team of financial advisers you assume less risk than hiring in-house. That’s because service providers are faced with much higher liability than standard employees. Contracted agreements give you more leverage if anything goes wrong. On the other hand, if your in-house team messes up big time the most you could potentially do is fire them and start fresh.
4) Access to Best in Class Software
Choosing the right invoicing, time tracking, expense reporting or payroll software can be arduous. So, stop doing it! Your outsourced accounting team is in the business of knowing all about the best technology solutions to streamline your internal processes.
5) Grow with Confidence
Small businesses have a funny habit of growing very quickly. We know it’s a fancy problem to have, but it can be a real hassle if your accounting team can’t scale quickly with you.
Add A New Team Of Experts To Your Bag Of Tricks
The value of experience, knowledge and passion is unmatched. Outsourcing financial services to a third-party provides you with a team of dedicated experts. CPAs must keep up to date on the latest bookkeeping and financial services in order to remain relevant among the competition.
On the other hand, in-house teams tend to get comfortable doing things one-way and don’t change systems unless something appears to be broken. Just because a system doesn’t appear broken doesn’t mean you aren’t wasting valuable time, money and resources on an outdated process.
Outsourced accounting departments are infinitely scalable and will assign new bookkeepers to your account on an as needed basis to grow with you.
How leveraging your outsourced accountant’s connections can help you grow
Thinking of your accountant as your best biz dev liaison may seem a bit unorthodox, but think about it: An outsourced accountant or CPA is going to know a lot of other businesses, which makes them a great resource for networking and referrals which can provide their own value for scaling.
Is Outsourced Accounting Right for You?
In many ways, outsourced accounting is right for any sized company, but over the years we’ve developed a simple recipe for the “sweet spot” for companies to make the transition to outsourced accounting:
- Planning to have more than $500k in revenue within a year or two
- Multiple revenue streams or locations
- Intense interest in rapid growth
Hiring an onsite CPA to take care of your accounting services is way cheaper than hiring an entire full-time team of qualified financial experts, but that’s exactly what you’re getting. By outsourcing an entire department you save money in terms of salaries, benefits, payroll taxes, paid-time off and so forth. Not to mention, CPAs know how to help you make more out of every last penny, saving your small business money in so many ways.
What Northern Indiana Small Business Accounting Services Does Vectar Onsite Offer?
We offer a wide variety of accounting services for small businesses, including creation of financial statement reports, bookkeeping and accounting, tax services, financial advisory, fraud detection, damage computation, royalty audits and so much more. You would need to hire an entire team of financial experts to get all of these same services in-house.
If you’d like to discuss if outsourced booking is right for your start-up, small business, or firm, drop us a line.