Outsourced accounting is becoming more popular and is often an effective way for businesses to handle their bookkeeping functions. Companies outsource these functions to gain access to outside expertise that they may not be able to afford with in-house staff.
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Let’s talk about some of the reasons you may want to consider outsourcing some or all of your accounting needs.
- Outsourcing services are scalable to fit your needs now and in the future. As your business grows, a customizable service option will grow with you.
- When you hire an experienced CPA firm, you gain access to their entire team of specialists. This gives you the power to collaborate with advisors who understand your business.
- Training and managing accounting employees take time. With technology updates, ever-changing rules and regulations, and a competitive job market, you will have a significant time investment in just managing your accounting team.
- You will have continuity and confidence in the accuracy of your financial processes and procedures — no need to accommodate staff vacancies or time off.
- You will be prepared for tax reporting and compliance management with timely and accurate reporting.
- Your cash management process will include appropriately timed accounts payable and accounts receivable processing.
These are just a few things that make outsourced accounting a viable option for many business owners.
Now that you know how most businesses can benefit from outsourcing, let’s take a moment to reflect on your accounting functions.
Think through these questions and note your answers. Then go back and review. Are there improvements you can make? Is it time to look for another solution?
When you concentrate on your accounting team and functionality, ask yourself:
- Are we using the correct timetable for accounts receivable and payable?
- Am I getting monthly, quarterly, and yearly reporting timely?
- How accurate are the financial reports I receive?
- Are my staff able to generate the high-level management reports that I need?
- Are there inefficiencies in workflows or processes?
- Do I have internal control issues and appropriate segregation of duties?
- Is my CFO spending too much time on bookkeeping tasks rather than analyzing the information?
- Are vendors paid on time, and is the billing process effective?
- Are all taxes paid timely (i.e., payroll, income, sales, use tax)?
- Do we have proper controls on bank accounts and cash?
If you aren’t 100% sure about each of these ten questions, take the time to talk to an outside advisor. You will be glad you did.
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