The saying goes, “No one looks after your money like you do”—but when you’re a small business owner, handling your business’s accounting needs by yourself can quickly become unmanageable, leaving little time for the tasks that require more attention. Learn more about factors to consider when you’re mulling the transition to outsourced accounting, as well as some of the benefits you’ll be able to realize by outsourcing your business’s accounting services.
Not every business will realize every possible benefit from outsourcing its accounting services, but many businesses can benefit from at least some of the following perks.
Reduced Overhead Costs
At some point, just about every business owner must turn over his or her accounting and finance needs to someone else. Often, these duties end up with an internal employee—and when considering the cost of benefits, paid time off, payroll taxes, and office space, even a part-time accounting employee can consume a full-time salary.
Replacing an accounting employee can also be a costly prospect, requiring you and other members of management to take time out of your schedules to create job postings, interview candidates, and train new workers. By outsourcing your accounting services to an independent firm, you’ll be able to significantly reduce these costs and the time you spend managing your accounting services.
For businesses that utilize in-house accounting services, losing a long-term employee can be an incredible blow. Not only do you have to cover this employee’s duties until they can be replaced, but it can also take some time to get a new worker up to speed on your business’s processes—even if they have some prior accounting experience. Using an independent accounting service ensures continuity.
In-house accounting services may keep files stored on computer hard drives or an internally-accessible cloud. But unless you also have a strong IT department or your in-house accountants are well-versed in security upgrades, it can be tough to ensure that this data remains secure at all times.
By using an outside accounting firm, not only can you rest assured that your confidential data is under wraps, you should be able to access up-to-date information from anywhere with a secure wireless connection.
Outsourced Accounting: Factors to Consider
Transitioning from in-house to outsourced accounting services can seem like an overwhelming process. Before you begin, it’s a good idea to think through the most important factors that should drive your decision. Here are just a few of the questions you may want to ask before you begin your accounting services search.
Are My Current Accounting Services Adequate, or Do I Want Something More?
Some businesses spread accounting duties over several non-accounting employees, while others have a dedicated accounting or finance department. While most outsourced accounting services can easily scale to meet their clients’ needs, it’s important to have a handle on these needs to ensure that you’re getting the proper level of service.
Will Outsourcing Accounting Services Reduce My Overhead Costs?
If you’re devoting a fair amount of office space or resources to an accounting department, outsourcing these services may allow you to downsize to a smaller, less expensive office. On the other hand, if your accounting employees already work part-time or remotely, you may want to investigate other avenues of cost savings to see whether outsourcing these services will be cost-effective.
What Will the Transition Look Like?
In many cases, you may be able to shift your accounting employees to other departments. Unfortunately, in other situations, outsourcing your accounting services can mean letting these workers go. Having a handle on what the transition will require can let you (and your employees) know what to expect when you commit to an outsourced accounting firm.
At Klein Hall, we offer full CPA services to businesses of all types and sizes in and around the Chicagoland area. If you’re ready to take the next step in streamlining your business’s accounting needs, give us a call at (630) 898-5578 or fill out a contact form to see how we can help you.