Time To Find Out Why Outsource Accounting Is So Popular!
As a business owner, it can be difficult to let go of certain parts of your business and it may be why you question others who have outsourced bookkeeping services and accounting support, why outsource accounting? Accounting is often one of these parts: it can include sensitive information or spill over into your personal finances. It can be hard to imagine letting someone else handle it. At some point, though, you need to focus on your growing business and add some back-office support to your toolbox.
In this article, we’ll look at some of the top reasons to outsource accounting and some signs it might be time to consider outsourced accounting services.
What we cover
What is accounting outsourcing?
Outsourcing accounting services means sending some or all of your monthly accounting tasks to an outside firm. Some companies choose to outsource all their monthly accounting from the daily bookkeeping upward. Others choose to outsource only specialized tasks such as payroll or income tax preparation. You can personalize what you want to outsource and save yourself time and money, this alone is one of the main reasons why outsource accounting has become so popular.
There are companies that exist to do exactly the things you can’t handle in your business. At Ease, we offer back-office support to manage your business’ mental load and streamline your bookkeeping and accounting practices.
Reasons why outsource accounting services are successful?
Why would you choose to send your bookkeeping and accounting tasks to an outside company? There are several good reasons. For many businesses, specialization is the key to growth, and accounting is no different.
Expertise
With accounting outsourcing, you get a team of dedicated experts who have more cumulative knowledge and experience than a single bookkeeper. You also get more depth of knowledge for unique situations. As your business grows, you will have not only more receipts and invoices to sort, but also unique payroll situations, more complex business tax returns, and more detailed financial statements. Instead of taking time and effort out of your busy schedule of running a business, accounting outsourcing can mean you have experienced experts managing this hugely important part of your business.
Why outsource accounting is great in these situations is because it can help you grow your business without having to resort to the hassle of hiring that experienced expert yourself, you don’t have to pay hundreds of dollars per hour to a CPA when you can have someone working when if there’s work to do, and you only pay them for what they have done.
Scalability
An outside accounting team can be ready to handle your business’ accounting even in seasons of massive growth. If your business takes a big jump, you may be caught by surprise by the sudden amount of bookkeeping and admin tasks you have. With an outsourced team like Ease, all you have to do is let us know you have extra work, and we take care of the rest. We have service packages to fit all levels of business needs and can scale up with you. When you grow our packages can grow with you, or the same if you scale back. We have many clients who say their business has grown before they had their processes in place, so now they are playing catch up. We know that is why outsource accounting is the perfect option for them, as there is no playing catch up, only working on what is in front of us right now.
Increased accuracy
Accounting outsourcing services like bookkeeping and other administrative tasks to an expert also leads to greater accuracy. Instead of trying to DIY your accounting or hire a part-time bookkeeper, you can be confident that you will be getting error-free financial statements and tax documents at the end of every period. Just the savings from one tax error avoided can be enough to justify why outsource accounting is a great solution.
When should I outsource?
If you’re just getting off the ground, you may not have a need for much accounting help. But there are a few milestones that could be a signal you’re ready for some bookkeeping support.
Higher revenue levels
A good benchmark is the $1 million in revenue mark. Generally, once your business has hit this point, it’s beyond your capacity to manage alone. They say ‘more money, comes more problems’ and this is true in every sense. By having a bigger cashflow you will need to make sure that you have experience and expertise overseeing you finances. Mainly to make sure your money goes further. Some people also like to use a number of employees in the business as a benchmark – if you have more than 4 or 5 employees, it may be time to add some help.
No matter how you know it’s time, it really depends on you. When you feel like you could be working on more important things within your business, and that accounting is not something you want to ‘waste your time with’, thats when you should ask yourself ‘why outsource accounting’. As the only things you should be doing in your business is what you are the expert at.
Ease is here. If you’re ready to send your excess tasks our way, or even if you just want to discuss options, we’re ready to hear from you. We can offer bookkeeping services in California and around the country with remote online accounting services.
Ready to scale up
You may simply need more out of Quickbooks than a small business package can provide but aren’t ready to shell out the money for more advanced software or a higher package level. A dedicated bookkeeping firm can afford to use higher-level financial tools because they serve multiple clients, this is why outsource accounting services are important. You get the benefit of cutting-edge accounting technology while only paying for what you use. Win-win.
You also may be exploring expansion opportunities for your business. If you’re considering a business loan or other financing options, your financier is going to want to see professional, accurate financial statements. This may be beyond the capacity of a part-time bookkeeper to create. Outsourcing your accounting to an expert team can let you get the polished financial statements that can unlock the next level of your business.
Pressed for time
If you’ve been DIYing your bookkeeping with Quickbooks or Xero, you may find yourself quickly overwhelmed with your accounting to-do list. If you’ve hired someone part-time to do some light bookkeeping, you may find yourself maxing out their hours and capabilities. These are signs it’s time for something more. You do not have to waste your time continuing to do these important tasks quickly and rushed so you can get back to work on the things in your business that really matter. Having your accounting outsourced will feel like a weight off of your shoulders.
Contact Us
We hope you have found out why outsource accounting is a great option for businesses.
If you have any further questions, contact us for a free consultation so we can ease your mind on why we know it will be a great option for you.
