Being a small or medium-sized business owner is a big job. Savvy business owners are taking advantage of outsourcing for all kinds of necessary work at an increasing rate. Delegating certain functions to an outside firm while maintaining control just makes sense. Whether it’s social media management, IT, or accounting, outsourcing has the potential to save you time and money. Let’s sort the fact from the fiction about outsourcing accounting services and how they can help you.
Isn’t Outsourcing My Accounting Expensive?
Has your business grown to the point that you are considering outsourcing your accounting? If so, keep in mind that outsourcing can be much less expensive than developing and maintaining an in-house accounting department. Find out the cost of hiring a CPA in your area (they often charge over $150 to $250 per hour). If you kept accountants on staff, you could be looking at both high salaries and expensive benefits for your employees. And this is regardless of how well your business performs in any given year. By purchasing only the services you need, outsourcing can be a tool that helps you to scale and grow.
Won’t People Lose Their Jobs If I Outsource?
In a word, “no,” not if you outsource your accounting strategically. Outsourcing can be an anxiety-producing word, but it is important to look at the details of what that would mean for your business. If you are just starting out, you may be taking care of the books yourself, or perhaps you have a bookkeeper on staff. If your business has grown to the point that you are considering outsourcing your accounting or bookkeeping, chances are you need more time to get things done. How much is your time worth per hour? You could be making more by pouring your energy into growing your firm instead of keeping the books for it.
If you do have a bookkeeper or small accounting department on staff, look closely at how it’s set up. What work needs to be done? What are they are most skilled at? How much do they cost? If you are understaffed with respect to accounting (either year-round or seasonally), you could delegate some of the work by outsourcing it.
Will I Get Locked into a Long-Term Contract?
If you outsource your accounting needs, you should be able to do so on your terms. Make sure to find out what type of contract lengths the outsourcing accounting services firm has available. What is their turnaround time? Do they do ad hoc work? Many outsourcing accounting and bookkeeping services do.
Credible firms know that to be competitive, they need to deliver excellent customer service, including tailoring their services to your specific needs. Hire a firm that will be there with the quality and quantity of work you need and the ability to flex down (or up!) in hours as your needs change. And make sure to read the fine print.
What About Cybersecurity?
It’s important to ask any prospective outsourcing accounting service what type of cybersecurity they offer. They should be able to explain this to you in clear terms and put any fears that you have to rest. They are in the business of working with other people’s finances and typically have cutting-edge technology to help them get the job done. If you have been doing your own books, you can probably upgrade your cybersecurity in the process of outsourcing your accounting or bookkeeping. And by storing data securely on the cloud, you will have access to it 24/7.
Outsourcing your accounting is a big step, but it can be a great one for your company. Don’t be swayed by myths. Get the facts and decide what will work best for you. Contact Pacific Accounting and Business Services today!