6 Benefits of Outsourcing your Accounting
16 January 2017
Outsourcing is often overlooked by many small-business owners and founders. However, outsourcing your accounting and bookkeeping functions can be one of the most beneficial decisions a business owner can make. Fortunately, it has never been easier and more beneficial to outsource your accounting functions than it is today.
With the recent expansion in cloud computing coupled with the rise in telecommuting, there is no longer a need to settle for the local bookkeeper. You have experts at your fingertips without a geographic need for them to be down the street. And while convenience is always important, I think you’ll find the following six benefits will push you towards a cloud based accounting firm. Not only will it make your life easier, but it will have a positive impact on your bottom line.
1. Saving Time
Most founders and business owners are all too familiar with the necessity to wear many hats while keeping their organization functioning. However, these administrative tasks are consuming your valuable time and overtaking your mental capacity. Whether you realize it or not, this current relationship between your financial to-do list and your schedule is one of the biggest roadblocks to growth and success.
When you outsource your accounting functions to a reputable firm, you will free yourself up to drive revenue, increase brand recognition, and improve loyalty. These are the functions that will allow your organization to reach its fullest potential; not searching through bank statements.
2. Saving Money
As a founder and business owner, you must always be cognizant of your bottom line. Almost every decision you make must be weighed against the affect it will have on this number. Well, this happens to be one of the biggest benefits of outsourcing your accounting functions.
Beyond an assumed increase in revenue, which was explained above, outsourcing is a much more cost-effective alternative to hiring. Simply compared to raw salary or hourly rate, outsourcing will prove to be the cheaper option. However, when you include the less-obvious costs of hiring, training, housing, and unfortunately turnover, outsourcing becomes the blatantly obvious choice. You simply never have to worry about the ongoing costs and tribulations associated with adding an employee.
3. Access to Top Software
There are countless software solutions and programs available to help with business accounting. Unfortunately, the costs are often difficult to justify and the programs are difficult to learn. Not to mention, there are hundreds of options for each function. Where do you even start when trying to choose one program over another?
Fortunately, when you outsource your accounting to a reputable firm, they will already have access to this software with a very in-depth understanding of its capabilities. You won’t have to pay an outrageous amount for access either. Your portion of the cost (rather than full retail) will simply be included in your monthly rate.
Best part of all, you don’t have to get bogged down vetting each program. The firm you hired has already performed the due diligence to ensure the software is capable.
Accounting and bookkeeping can become a very complex piece of running your business. Outsourcing will not only free you up to focus on more important tasks, but it will also ensure these activities are done correctly. A business owner simply can’t be an expert in everything. The most successful founders and owners are great at identifying those areas they are not experts, and bringing in an expert to ensure they are completed at a high level.
You simply cannot guarantee this outcome when hiring an employee. Don’t do something that could potentially be harmful for your organization. Your best bet is to turn to a team of experts with a proven track record. This is what you will find when you outsource to the right firm.
Two heads are better than one, and a team of accounting experts are better than… well, better than any other solution.
Don’t leave your financial tasks up to a part time local bookkeeper who spends a few hours locked in an office at your location once a week. More often than not, you are missing out on an opportunity to bring some fresh eyes in. When you outsource, you open up your management team to these proven experts. And not simply experts who have degrees and experience, but experts who have worked intimately with countless founders and business owners.
I have personally worked with my team to help founders make enormous decisions regarding the direction of their organizations. When you outsource to these firms, you receive this priceless insight as a byproduct of your relationship.
No founder starts out with the mindset that growth is bad. Most of the time, we want to grow and increase our market share. However, certain challenges present themselves when a startup begins to grow. One of the biggest challenges is ensuring you have team members in place to keep up with demand. This can mean aggressive hiring, which inherently has a higher turnover rate.
While hiring may be necessary for some functions of your business, accounting is not one of them. We already have the pieces in place to accommodate high growth.
This article is brought to you by GMAC Accounting, LLC, a full service cloud accounting and bookkeeping firm. With over 30 years of experience in the business of banking, accounting and project management, GMAC assists small and mid-sized businesses with all their financial needs. For more information on GMAC Accounting, please visit: www.GMACAccounting.com