Should you outsource your accounting?

Some businesses use an internal team for their finances. And in smaller companies, even the owners themselves tackle the task. 

Such an approach could work for the business for a while. But it’s probably not the best option, especially once the company starts growing.

To answer the question, it’s ideal to outsource your accounting, or at least consider doing so. Here are the essential reasons why outsourcing is a good idea.

Reason #1 Time Efficiency

Your team already has a list of responsibilities. If you don't have a dedicated accounting team, your team will probably spend their work hours taking care of the financials. 

Your team's time on accounting tasks means less time focusing on your company’s vital operations, such as improving sales or bringing in new leads.

If you and your employees are not trained or experienced, giving up company resources for these tasks is wasteful. You're decreasing your business capacity and distracting your team with a job outside their skill set.

Outsourcing will save you time and get your financials in order. Simply put, leave the accounting to the professionals. 

Reason #2 Decreased Costs

If you consider hiring an employee solely for accounting or have already done that, notice that outsourcing could save you a significant amount of money. 

Companies hiring accountant agencies save around 40% of the costs compared to those that have internal accounting. 

The calculation is straightforward – by outsourcing, the only cost you have is the service price. Otherwise, keeping a full or part-time employee comes with additional expenses, not to mention taking away various resources better spent elsewhere.

Reason #3 Lesser Risk of Fraud

Small and medium-sized companies suffer significant losses due to employee fraud. Larger businesses tend to have better control, with dedicated departments that monitor all transactions. A small enterprise usually lacks this control, resulting in a higher risk of fraud.

When you outsource your accounting, your company gains access to an affordable Chief Financial Officer service that will have no problems detecting fraud signs. You can analyse the financials as the accountant is entirely independent of your company.

Reason #4 Professional Service

Professional accountants have an obvious advantage - they know accounting. Your business will be in safe hands by using a very knowledgeable service with all relevant codes and laws.

From a technical standpoint, an accounting agency will have every resource necessary to perform the job - from expert employees to the best accounting software. These resources won't be available to your company without additional expense and time investment.

A professional accountant could offer you practical, impartial advice that you couldn't get from anyone other than an expert.

Focus on Business, Not on Accounting

Once the responsibility of accounting is lifted from your shoulders, work efficiency will improve in several ways. 

Outsourcing your accounting is cost-effective, saves time, and lets you focus on the more critical matters where you and your team can be the most productive.

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