While some small and medium-sized businesses may have in-house employees or teams handling their accounting, for most, it makes more sense to outsource their accounting operations to a professional accounting firm.
There are several reasons why this approach makes sense.
Reduced Employee Costs
Most companies consider outsourcing their accounting operations because the cost of employing an in-house team is costly. When you hire an external accountant, you don’t have to pay for any office space, training, benefits packages nor other employer costs.
So, when you’re outsourcing your accounting operations, you’re saving money.
Reduced Fraud
The Association of Certified Fraud Examiner’s released a study in 2012 which showed that small businesses with less than 100 employees are often prime targets of fraud. Losses can often go unnoticed, because most companies of this size don’t have a CFO or a controller monitoring their KPIs for abnormal activity.
Accounting controls or external audits can reduce cases of fraud.
Financial Advice
If you perform the majority of your accounting functions at the end of the tax year, you’re allowing an 11 month gap in which you’re not consulting a financial expert. When you outsource your accounting operations, processes are customised for your business and reporting occurs regularly throughout the year. Having up-to-date and useful financial information, will help you take action and make sensible business decisions.
No One Knows Accounting Like An Accountant
When you outsource your accounting operations to an accounting firm, you’re paying a team of experts to look after your business’s financials. An experienced accountant is familiar with all of the tax codes because it is their job. They work to ensure your business is up to date with the latest tax-related information and compliance.
Flexibility & Scalability
With an in-house team, scalability is often a challenge. If your company experiences growth and you need to increase your workforce in your accounting department, it may take months to find the right employee. Every new hire needs time to settle into an organisation as well.
In comparison, an external team of accountants is always ready to adapt. Whether your need for accounting help increases or decreases, the resources allocated to you are adjustable.
The Best Software
You can benefit from the software chosen by a team of professionals, based on their experience. As a result, you don’t have to waste time and money trialing and selecting accounting software.
Conclusion
Now that you’ve seen how you can benefit with the help of an accountant, book a free initial consultation with us to find out more.