5 Reasons to Outsource Your Accounting Operations
As a small to medium business owner, you are required to wear many hats in your organization. HR, accounting, and accounting for inventory are some of the departments that you will have to be an expert in or at the very least, have an idea of its function. An easy way to free more of your time and focus on growing the business would be to outsource the accounting operations. Here are a few reasons:
1. Better Use of Your Time
Less time involved in researching and running the back-end operations. The tedious tasks of managing receivable and payable accounts, researching invoices and many other tasks can take away from valuable time which can be used in expanding your business.
2. Lower Operating Costs
By outsourcing, you can remove the need to hire a full time or part-time employee which saves on labor and benefits costs. With outsourcing, you pay for just the actual accounting with none of the added cost. In some cases, there are savings of up to 40% in monthly costs between in house and outsourced accounting.
3. Reduced Fraud
According to the Association of Certified Fraud Examiner’s study, the most common victims of fraud are privately owned small businesses with less than 100 employees with an average fraud amount of $147,000. This is mostly attributed to small companies not having a controller or CFO to manage and identify irregularities in transactional and billing metrics. 26% of the cases done in their study were detected due to accounting controls and external audits. With outsourced accounting, you will have access to a controller who can monitor and detect fraud signs and initiate the necessary fraud protection protocols.
4. Hire a Team, Not Just A Single Expert
A team of dedicated accountants that know tax codes and laws are at your disposal when outsourcing. Skill levels are considered and executed per task so you will have the most experienced and qualified staff at any given time on your account. It is their job to stay up to date and to make sure that all bookkeeping is accurate and up to date. This means more accurate data for your management team to use in creating a plan for your company’s growth.
As your business grows, so can the services provided by outsourced accounting. The complexity of scaling becomes simpler as you will receive feedback and options of when to scale up or when to cut back. Whatever you short or long term goals are, they will help in achieving them through feedback, flexibility, and options.
If the benefits of outsourced accounting are right in line with what you need to take your business to the next level, the next step will be finding the right one to fit your needs. Visit veraccounts.com today and speak to one of our accountants to find the best accounting process for your company.