According to a recent study, 70% of small businesses outsource tax preparation, and 30% outsource tax planning. Auto repair shop owners are no exception. If you own a shop, you’re likely responsible for many of the essential tasks required of a successful business. As the shop owner, you also have umpteen other responsibilities that require your attention to scale your company and boost revenue.
Over the years, many auto repair shop owners have decided to outsource their accounting to qualified accounting experts. Although this decision comes with several benefits, we focus on just three here: It can help them increase profitability, save on operational expenses, and expand and scale their business. These benefits can, in turn, empower owners of auto repair shops to take their businesses to the next level.
According to a recent tax survey, 20% of small businesses spend more than 120 hours per year on their federal taxes alone. That’s valuable time that could be spent focused on optimizing big-picture operations and increasing cash flow in the company. When you outsource these tasks, you allow yourself to dive deep into your business strategy and find areas where you can scale. You’ll also have more time to interact with clients, which will increase customer retention and build brand reputability. All of these activities you now have time for can increase your profit.
Less Operational Expenses
One of the highest priorities a business owner has is keeping operational expenses low and profit high. By using an outsourced accounting service, you will save significantly on operating costs. Without having to hire an internal full-time accounting team, you can avoid employer taxes, insurance, benefits, or liabilities. Your business can also be proactive in terms of financial reporting, so there’s less chance of you owing money to the IRS down the road.
Year-Round Tax Support
It’s no secret that staying on top of business taxes is a full-time job in and of itself. Plus, there’s the added risk of a potential audit. By partnering with an accounting service, your business will have year-round access to a full team of certified professionals that can keep you on track. They can also offer you expert business advice whenever you need it. Whether you want to invest in your business, expand to new cities, or sell your business, your accountant is an invaluable resource for making strategic decisions. Perhaps most importantly, certified accounting support means guaranteed tax compliance and flawless reconciliation of business bank accounts and credit cards.
More Time to Focus on Your Business
Running an auto repair shop can be a very physically and mentally demanding profession. The last thing anyone wants to do at the end of a long day is prep the books, especially when it comes to payroll and taxes. By outsourcing these essential but less than fun tasks, you can take back more time in your day. This allows you to refocus on the other aspects of your business while feeling assured that your important financials are taken care of. Rather than working on administrative activities, you can focus on bringing more customers in and optimizing employee training to increase profit.
Many business owners don’t even realize the burden of handling all of their accounting duties for their business until they’ve handed off the tasks to someone else. One of the best things you can do for your well-being and that of your business is to partner with certified professionals to ensure your business financials are in order. By outsourcing your accounting, you can drive more profit, cut operational expenses, and ensure sustainability despite the stiff competition. Contact Pacific Accounting & Business Services to learn more.