In Pursuit of Profit
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In some cases, holding onto the role internally means hiring an in-house accountant, but at many small businesses, the alternative is simply tasking other employees with these kinds of functions. And, to no one’s surprise, the lucky person who gets the accounting work added to their to-do list tends to be the business owner.
So, how will you know if outsourcing is right for your business? If you have been wondering about any of the following questions, our team can help you determine if outsourced accounting is going to be your best option:
Ready to get started? We will answer your questions in this guide to accounting outsourcing:
The Benefits of Outsourced Accounting
This is important to remember because many business owners look at the amount of time it takes them to complete bookkeeping and accounting tasks and are hesitant to hire those functions out because they assume that the work will take that long for a third party provider to do as well. However, that is rarely the case because professional accountants have the depth and breadth of experience needed to work more efficiently by utilizing better technology and industry resources.
Why is outsourcing less expensive than hiring? Outsourcing allows a company to forgo the initial costs of recruiting (searching for candidates, verifying credentials, onboarding, and training) as well as ongoing employment costs (health insurance, PTO, retirement benefits, and employment taxes). The result is a far more cost-effective (not to mention speedier!) solution.
Outsourcing allows companies to pay for exactly what they need when they need it without the same commitment. Fractional engagements can include anything from ongoing part-time work to short-term project work, audit support, expansion consulting, or tax filing help. At a time when business costs are on the rise this flexibility is another huge benefit of outsourcing.
The Disadvantages of Outsourcing
“The number one reason business owners choose to manage the various operations of their businesses themselves is simply because they want to retain control over these areas. Small business owners are type-A personalities, making them likely to have their hands in many different areas because they want a say in how things are being handled. They think the outcome will be better when they are at the reigns because they are confident in their own abilities and leery to hand off areas of the business.
Business owners and managers that are anxious about delegating should be reassured by the advantages listed above to ease their worries. Knowing that outsourcing will give them more time to focus on the overall effectiveness of the business should be enough of an incentive to help them to let go of accounting tasks because doing so will allow them to be better connected to the business as a whole.
The Gray Area in The Middle
However, some niche industries benefit from having in-house personnel that can take the time to master a steep learning curve and stay with the company as it grows. Whether you will find more experience from a third-party accounting company or an in-house hire likely depends on your company’s specific business needs.
However, companies that still really value in-person or in-office work may find that they prefer to hire in-house instead of outsourcing; or they will want to look for accounting companies that offer on-site work options.
If you are considering outsourced accounting services, please reach out to us! We would love to discuss your company’s unique needs and figure out what kind of support we can provide to allow you to focus on growing your business. Whether you need a full-time outsourced accountant, part-time accounting support, or interim accounting help, we have the staff with the right experience to fill the role.