If you’re looking for new ways to streamline your company’s day-to-day operations and grow its bottom line, perhaps it’s time you consider outsourcing your accounting department. Beyond getting rid of the hassle that comes with bookkeeping, here are 4 reasons you should do it:
Better Use of Time
Free up valuable company time that can be utilized elsewhere. Whether you're running your business’s accounting operations yourself or using a team of employees, bookkeeping requires a lot of precious time. You can avoid the distractions of day-to-day bookkeeping and instead focus on bringing in new customers by outsourcing your accounting department.
You can save money by eliminating costly accounting positions. In-house accounting departments can be expensive when your business is footing the bill for benefit packages to full and part-time employees.
Hire the Experts
When you outsource your accounting department, you’re essentially hiring a team of experts. Staffing options at accounting firms are much more flexible than using a person or two in your in-house operations, so you’ll always have the most experienced and qualified team on your side.
Find the Right Fit
Accounting firms make it simple to expand and grow your business or cut back and reduce spending. Outsourcing opens up new opportunity to receive feedback about where you can shift your resources to raise your profits. Whatever your long-term goals are, accounting firms can help you achieve them.
How to Outsource It
There’s a lot to consider when comparing options for outsourcing your accounting department. Before deciding on an accounting firm, take into account how well respected the firm is among other firms in the market. It’s a good idea to check out their testimonials as well to see what their existing customers think of them. Testimonials are often a good gauge for customer satisfaction. You’ll also want a firm that is flexible to accommodate your business’s growth.
Depending on your business and the services you’re looking for by outsourcing your accounting operations, you will need to provide certain information to your new partners. This could include anything from sales invoices to bank records. If you’re looking to outsource everything, here’s an idea of the information you’ll need to get ready to provide:
- Sales invoices
- Bank and loan statements
- Petty cash information
- Employee information (personal and salary)
- Inventory levels
- List of debtors and creditors
You may need to provide more information depending on your business and the services you’re looking for.
Any business looking to outsource its accounting department should take a look at a few options and request quotes from each firm they’re interested in. It’s important to choose the right provider for your business, as choosing the wrong one can end up costing you. Choosing a provider solely on cost is generally a poor decision. You need a fit that accommodates your business-specific needs.
Outsourcing your business’s accounting operations can be a daunting task. Not only are you trusting another company with your business’s financial information, you’re making a decision that will impact your business’s bottom line. However, if done properly, outsourcing your accounting department will benefit your business in the long run.