Are you happy with the performance of your accounting and finance departments? Or is it just another hat you have to wear as a small business owner? In the early days of small business ownership it may feel natural to be involved in every aspect of your business, but you may be feeling the strain as you grow and your responsibilities at the top are becoming more taxing on your time. There is a certain point where startup transitions to an established business and it comes time to decide what to do for yourself and what you can delegate or outsource. If you wanted to keep your books, you would have opened an accounting firm! Here are seven reasons why accounting and finance should be the first department that you outsource.
1. Payroll Is The Most Commonly Outsourced Business Service
Your employees are going to be your most important asset. When you have to keep track of their salaries along with benefit deductions, taxes, new hires and terminations, paid time off, state and federal regulations, and reporting, it is clear why payroll is one of the first services that businesses will outsource.
Making any mistakes here can be very costly – and can lead to tax penalties or dissatisfied employees.
2. An Investment In Your Growth
As your business grows, you will find that you will have more opportunities to invest in your growth. Investing in your accounting and finance is a prime opportunity to see an immediate return on investment. An experienced accounting firm can find areas where you can save money and reduce costs in ways that you probably haven’t even considered.
3. It Will Be Easier To Reach Your Business Goals
If you have recently reached a coveted milestone, such as reaching a certain amount of total revenue or profit, you will be in a celebratory mood. However, you shouldn’t take your eye off of what comes next. Remember how much effort it took to get to where you were and what it is going to take to reach your goal in the future. With your accounting needs outsourced, an experienced accountant can help you plan the steps carefully that will lead to your next big goal achievement..
4. More Data To Make Better Decisions
You would be surprised how many of your decisions hinge on having up-to-date information on the state of your finances. When you are faced with changes in tax law, have the opportunity to adopt new technology, or are forecasting your business for the next quarter you need to know your true financial position in order to respond to these challenges. An outsourced accounting element can provide the data you need in easily-understandable comprehensive reports when you need to make these decisions.
5. Tax Time Will Be Taken Care Of
As a Small Business owner, just the mention of taxes probably gives you a headache. Even if you have managed to make it this far without having any tax trouble you may struggle in the future as new tax laws come into effect and you find that deductions you depended on are no longer available. An accounting firm will be fully apprised of upcoming changes and will make sure you will be prepared for them. You will not regret letting someone else tackle tax time.
6. Increased Efficiency and Streamlined Processes
If accounting isn’t in your wheelhouse, you may be working harder than you have to achieve the same result as an accounting firm would with greater efficiency. Knowing what tasks to focus on and how to cut down on any duplication of effort allows an outsourced accounting department to keep your accounts balanced with fewer man-hours.
7. Minimize Risk and Maximize Profit
Overall, you may be reluctant to outsource your accounting because you are worried about the risk, but would it surprise you to hear that outsourcing can actually minimize your risk profile? Business finance is extremely complicated and there are a lot of ways to make a simple mistake that can be very costly, subjecting you or your business to an IRS audit or even legal liability. Having a competent and skilled financial professional in charge of financial compliance dramatically reduces business risks and allows you to focus on the tasks you imagined when you started your company. Do you have more questions about outsourcing finance solutions for your business?
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