The conventional wisdom is that the business itself should do accounting. But ask yourself if you have the necessary skills and experience to perform this task. Also, you or your staff should have enough experience to handle the growing accounting tasks. And such a professional in your team would be expensive.
Accounting service is one of the most cost-effective procedures a small company can outsource. Your budget may not allow you to hire full-time accountants or CFOs. However, it would be better if you understood the value and importance of the work they can do. At the same time, the company can outsource such functions to an outside accounting service provider.
It will free the business owner from filling out a lot of paystubs, contacting banks, and correcting errors in reporting and thus save a lot of time on business development.
Outsourcing your accounting is the best decision to focus on making your business more profitable.
In addition to the obvious benefits mentioned above, there are several other reasons to hire an outside accountant.
You hire an expert when you outsource accounting functions and operations to a professional accountant. The professional accountant knows the tax codes and laws inside and out because they dedicate all of their time to it. They operate around the clock for your business, maintaining the latest tax information. They understand accounting standards, payroll, formal reporting requirements, and record management principles.
In addition, a professional accountant will keep you up-to-date on the latest legislative changes and can provide expert advice on implementing new business ideas on time.
A good accountant will always help make accounting more efficient. Sometimes they may work with several companies simultaneously and offer significant expertise that they have picked up from another client. These can be issues related to taxation, the use of accounting software, and so on.
Saving money and time.
Everyone should mind their own business. You’re a business owner, and it’s in your best interest to make more profit, optimize taxes, avoid fines, and comply with regulations in your field.
Time on paystubs is better spent on day-to-day operations and attracting new clients. Get rid of internal accounting distractions from your office by outsourcing your accounting.
Most businesses view outsourcing as an additional and unnecessary cost to their business. It is not a correct view at all. The opposite is true.
By outsourcing your accounting, you reduce your costs, but most importantly, you don’t reduce the quality of your accounting.
In addition to his qualifications, a freelance accountant has several other advantages. For example, you won’t have to pay unemployment, health insurance, social security, sick pay, or vacation pay for an outsourced accountant.
Outsourcing your accounting operations saves you money by eliminating costly benefits packages for full-time or part-time employees. When you outsource your bookkeeping, you only spend for the actual service and nothing else. As a result, it saves productivity costs as well as payroll costs.
The accountant will be able to keep control of the timing and content of your reporting at all times. It is the independent outsourced accountant who should prevent fraud within your company. They do not communicate with your other office employees but control them.
With accounting outsourcing, small businesses get a person who can detect signs of fraud and implement the proper protections against it.
The high professionalism and responsible attitude to work on the part of outsourced accountants will help you be confident in their work’s efficiency. At the same time, the accountant will be fully responsible for the records, the reports he filled out and filed, and any other documents. This way, you can fully trust and feel safe running your business.
Your small business may not be tied to the office because a freelance accountant does not need a workplace, computer, printer, or phone. They will be in touch with you wherever you or he is. It provides more flexibility in where and how you manage your business.
Privacy and security.
Keeping an accountant on staff involves giving that person much personal trust. It would be best if you continued to trust them, regardless of individual or work disagreements between you, the accountant, and others in the office. By turning over your financial data to an independent accounting service provider, you ensure the privacy and security of your information. Professionals use strict security measures to provide access control, confidentiality, and data backup.
Types of work that an accountant performs
An outsourced accounting service does the same amount of work that your office employee would do:
- Completing, collecting, and archiving invoices and other primary documents;
- Collecting and processing all documents related to the business operations of your business to use this information in annual reporting;
- Verifies the legality of billing documents your company receives and issues;
- Completes and submits monthly returns for VAT, personal income tax, and reports for other payable taxes;
- Supervises the deadlines for filing reports;
- Forms paystubs and organizes payment of wages;
- Calculates the cost of production, the cost of raw materials;
- Completes and submits quarterly performance and cash flow statements;
- Completes and files reports on merchandise and inventory;
- Inspects and monitors remote tools and equipment, takes stock, records expenses, income, and losses for the business;
- Prepares annual financial statements, including balance sheet, income statement, and cash flow statement;
- Promptly solves other issues that have arisen during the company.
The only difference between independent accounting services and the employee in your company’s office is that he is not in the office all the time but works with you remotely. In addition, it is advisable to discuss with such an accountant the amount of work he has to do in a week, month, or year.
Suppose you find that compiling paystubs, tracking income and reporting, and other accounting functions drain your imagination and a sense of purpose. In that case, you may consider employing an experienced, professional accounting service provider. They will be able to provide efficient, prompt, and quality work that will meet the requirements of current law.