Even as a CPA firm, we’re not above admitting that while the accounting function is incredibly important in any organization, it is often time consuming and gets in the way of more exciting revenue-generating business initiatives.
If, as a business owner, you have toiled over internal accounting tasks when you could have spent that time on big picture items like developing an amazing new marketing campaign, you’re not alone. That’s why recent years have seen a growing trend in business owners outsourcing their accounting function to CPA firms.
How do you know whether outsourcing the accounting function makes sense for your business? Let’s pose some questions.
- Do you struggle to get reliable accounting information from your internal accounting department?
- Are employee costs, such as rising salaries and rising health insurance costs, making it more difficult to hire qualified accounting personnel?
- Have you spent significant money on robust accounting software that isn’t used to its fullest potential, or at all?
- Are you spending too much of your time on back office functions such as payroll, and not spending enough time to grow your business?
If the answer to any of these questions is “yes,” then it’s time to consider outsourcing your business accounting function.
Many small- and medium-sized businesses are taking advantage of the growing trend of having a CPA firm handle their back office accounting function. Let’s take a look at some of the benefits of outsourcing your accounting function.
1. You will likely save money.
By outsourcing your business’s accounting operations, you can actually save money by not having to pay wages and offer benefits to employees.
With the rising cost of employee benefits, such as health insurance, many small businesses can’t afford the cost of full-time, qualified in-house accountants. Instead, they settle for part-time employees or full-time employees who cost less but aren’t qualified to perform the job well.
By outsourcing your accounting function, you only pay for the hours needed to complete required weekly and monthly tasks, without being on the hook for employee benefits.
2. You will have a team of qualified accounting experts working for you.
Wouldn’t it be nice to have a team of qualified accountants working for you? When you outsource your organization’s accounting function to a CPA firm, you are essentially hiring a team of professional accountants who have expertise in a variety of different areas.
Besides just getting a bookkeeper, you are getting CPAs who have expertise in accounting, tax, employee benefit issues, accounting software systems and financial planning.
The bonus? You’ll get a team with a wide range of expertise at a cost that is often less than one full-time, in-house employee who has little to no expertise in these areas. We’d say this puts your business ahead of your competitors. Wouldn’t you agree?
3. You’ll get a quality, accurate work product from people in the know.
Many small business owners depend on one or two employees to handle all of the accounting functions. Too often, those employees don’t have the time or expertise to produce accurate and reliable reports that give business owners the insights they need to make informed decisions.
By outsourcing your accounting function to a CPA firm, your financial information will be handled and produced by people with relevant expertise.
4. You’ll get way more out of your accounting software system.
Having – and correctly utilizing – the right accounting software system helps provide business owners with data-driven reports and information that lead to better decisions.
Many small businesses either don’t have the proper accounting software, such as QuickBooks, or lack employees who have the ability and skills to fully utilize an accounting software system.
The professionals at a CPA firm, on the other hand, will use the latest and greatest in accounting software to provide you with the financial information you need to make good business decisions. Chances are, if you have an accounting software system in place, the CPA firm that’s handling your accounting function can also train your staff to better use it.
5. You’ll get back more time to grow your business.
Too often, business owners and their accounting staff get bogged down with day-to-day problems like accounting input errors, reporting errors and software glitches.
Outsourcing your accounting function will free you up to focus on bigger picture items like business profitability and growth, rather than getting tangled up in an accounting mess.
6. You’ll get big picture insights from objective outside experts.
When you outsource your organization’s accounting function to a CPA firm, those expert accountants will be looking at your financial information with an outsider’s perspective, which often puts them in a better position than you, the business owner, to spot irregularities and cost-saving opportunities.
The people from your CPA firm should be there to assist you in analyzing and interpreting your financial data and in turn, make objective suggestions for growing your business
Likewise, business owners can freely share sensitive information with a team of outsourced accountants that they might not feel comfortable sharing with employees.
Where Do I Go From Here?
Outsourcing your business’s accounting function to a CPA firm can result in you getting outstanding expertise, efficiency and objective recommendations, all at a cost that is equal to or less than what you are paying your in-house accountant.
Give Gross Mendelsohn’s Smart Accounting Support Solutions team a shout to discuss whether outsourcing your accounting function makes sense. Contact us online or call 800.899.4623.