When it comes to managing your business, there is no shortage of things that need to be monitored, maintained, and taken care of. In fact, the tasks involved in running a business often cut into personal time that could be enjoyed with family, friends, and hobbies. Have you ever considered outsourcing your accounting services? If not, here are some of the benefits worth thinking about.
What Exactly Falls Under Outsourced Accounting?
What exactly is "outsourced accounting"? Is it payroll? Taxes? Yes, those things can all be included. However, outsourced accounting can provide so much more, such as:
- A complete array of bookkeeping services, including bank account and credit card reconciliations, employee expense management, AP management, fixed asset accounting, and monthly financial reporting.
- Cash management services, such as processing vendor payments, managing workflow, 13-week cash flow analysis, and cash collections support.
- Financial reporting and analysis, with services that include annual budgeting process management, budget to actual reporting, KPI reporting, and written financial statement analysis.
- Tax services, such as 1099 management, and sales tax filing.
- Account management, with a dedicated client accounting manager who works with an entire team of experts to best serve your business.
When Is a Good Time to Consider Outsourcing?
The best time to consider outsourcing is when you need to free up your time to focus on other aspects of the business. For many business owners, this time arrives early, with a need for assistance with accounting decisions when starting the business. Others, however, have spent years handling their accounting services in-house or even on their own.
6 Benefits of Outsourced Accounting
There are a number of benefits for businesses that choose to outsource their accounting tasks. Here is a look at some of those benefits.
1. Accurate Financial Reporting
A lot of smaller businesses have employees who "wear a number of hats." They may be focused on providing accounting services, but are also working on other business projects. Unfortunately, this can result in an employee who is stretched too thin and prone to making mistakes. Outsourced accounting allows your financial services to be completed by someone whose sole task is providing financial services, and whose mind is focused on doing that one task as thoroughly and accurately as possible.
2. Proactive Financial Monitoring
Too many business decisions are made in reactive mode to the circumstances of staff, the market, or even the economy, rather than proactively addressing expenses and potential problems as soon as they appear on the horizon. Outsourced accounting places your books in the hands of professionals that can help you plan for expenses, manage your budget, and alert you of areas of concern.
3. Save Plenty of Time
According to the business mentoring organization, SCORE, about 40% of small business owners say that bookkeeping and taxes are their least favorite parts of owning a business. Let's face it: No one goes into business to do bookkeeping and taxes – unless they're an accountant. By removing accounting tasks from your to-do list, you have more time for the things you love about owning a business.
4. Learn More About Your Business
If you're just starting out, you likely have a lot of questions about how to set up and maintain your books. Instead of entrusting a bunch of new hires to do that work for you, why not gain the experience and knowledge of a team of people who are really good at accounting and understand business?
5. Scales With You
Hiline goes beyond traditional accounting services to provide additional options focused on helping your business grow, including our outsourced CFO service. An outsourced CFO is a partner for your business who focuses on providing solutions for tasks such as:
- C-suite and founder consultation
- Optimizing your business strategy
- Interfacing with external partners
- Investor/board reporting
- Vendor contract review and negotiations
- Financial planning and analysis
- Representation at internal company meetings
- Supporting through financing and fundraising needs
- Providing additional tools to your team to fuel growth and innovation
6. Less Costly Than an In-House Accounting Team
Hiring employees generates a certain amount of overhead. There are workers' compensation and other insurance expenses, as well as the costs of vacation, and sick leave. Outsourcing your accounting tasks frees you from the overhead costs associated with hiring in-house employees.
What's more, by having a team providing your outsourced accounting services, you have the advantage of the experience of each highly trained professional on the team and more than one set of trained eyes looking at and working with your financial data. This helps avoid costly mistakes that can make you fall out of compliance with the federal, state, and local taxing authorities, and cause your financial reports to be considered unreliable.
When Does an In-House Accounting Team Make Sense?
While outsourced accounting is very beneficial in most circumstances, some business owners state that they prefer to have someone in-house who can be reached immediately with questions and who works in the same office. Others feel as though they have lost some control through outsourcing their accounting tasks.
The hiline team understands these issues and knows they will factor into your decision-making process. That’s why we make our onboarding phase totally transparent – defining which tasks are to be completed, when, and by whom – and we ensure timely communication every step of the way.
Want to See How an Outsourced Accounting Team Can Work For You? Let's Talk.
hiline started with the goal of pushing the boundaries of what an accounting firm can be. We’re a one-stop-shop for all things finance and HR that gives you more time to focus on your business's growth potential, implement your business ideas, or even take some time for yourself. For more information, contact us.
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