Did you know that late filing of taxes is one of the most common errors made by US businesses according to the IRS? This results in penalties, which cut deep into the profit of companies. But do you know how to avoid them in these lean economic times?
One way is to get professional help so you can concentrate on the things that matter: Growing your business. Below, we discuss outsourced accounting services and why your company needs them.
1. Efficiency
When you outsource your accounting and bookkeeping services, you gain a whole new level of efficiency. You are given the expert advice, knowledge, and tools of people who have made this their full-time career.
You also get this for the short term, or for as long as your need it. You don’t need to invest in staff or the building of huge teams. Instead, it is one less thing to worry about so you can concentrate on building leads and getting sales.
2. The Numbers Are Right
A business needs accountancy and bookkeeping skills in several different areas, particularly if it is a large company. One of the advantages of accounting services is that companies have specialists to deal with various facets. When you outsource you don’t hire one person, but a team to deal with your books.
When you have a team, you can be sure that people with expertise are crunching your numbers. This gives you peace of mind that the job is being done correctly and in the best possible way.
3. Flexibility With Staffing
Bookkeeping and accounting are not full-time occupations. There will be parts of the month and year when work eases up. Unfortunately, if you are hiring staff full time this is lost productivity and a portion of your wage budget is wasted.
Outsourcing your accounting function avoids this. This makes your budget go a lot further.
4. Cost Saving
When you use accounting outsourcing services, you get access to many features that would cost a lot more money individually. These may include CPAs along with experienced accountants.
In addition, you will also find related fees and those incurred fall. Infrastructure fees drop and you will be paying less in employment taxes and contributions. All of this combines to make a sizable hole in company expenses which can be saved with outsourcing.
5. Data Security
Another full-time job in itself is data security. This is vital to your business, its staff, and its customers. A breach can not only result in legal problems but can damage your reputation.
Unfortunately, these threats are ever-evolving. A quality outsourcing firm will have strong systems in place to handle data. This will include everything from personal details to financials.
You may already have this in-house through your IT team. However, when you outsource to a trusted company you have peace of mind that any data transferred will be kept securely.
6. Accurate Cash Projections
When your figures are right, then your cash projections will be more accurate. This is vital for both small and large businesses where knowing how much money is coming in and going out is essential. In times of economic uncertainty, it becomes invaluable.
Most outsourcing firms will be able to generate rolling projections. These can last up to around 13 months. This makes it much easier to get finance when approaching banks and investors.
It can also help you see where you will need to cut expenses soon. All of this can help your business stay afloat, and also be successful during times of expansion.
7. Experience
You may be an expert in your field. Yet the people who work with you in outsourced accounting will have a different skill set and knowledge base. They can use this information to sit down with business owners and help them understand the information.
From here, they may be able to point out areas of concern an owner may have missed. They may have ways to correct this that has worked with other clients in similar situations. You are getting their consultancy advice on top of your bookkeeping and accounting.
8. Latest Policies and Compliance
As a business owner or CEO, you will already have a lot of information to deal with. If you fail to stay up to date on the changes and trends taking place regarding tax, compliance, and accountancy, it won’t just cost money. It could result in legal action.
When you outsource, the company you choose needs to stay up-to-date on these to function. Therefore, you will find it can keep you abreast of any changes that may impact your organization. If you need to adjust to them, then they will inform you of the best way to do so.
9. Scaling Up
When it comes to scaling your business up or down, it usually involves hiring or firing staff. This is a long, complex process that costs money. In addition, you may need to do this multiple times depending on how much you are scaling up.
When outsourcing, this isn’t a problem. Increases can be handled quickly, so you can get on with improving your business. If you need to rescind services it can be done efficiently, ensuring you don’t waste time and money.
10. Speed
Good accounting outsourcing services will have up-to-date technology, making them able to produce reports on KPIs and service level agreements quickly. This may be hard to attain when your team is busy with other projects. When winning clients or funding, this speed is vital.
Finding Outsourced Accounting Services
Outsourcing accounting services have very few downsides. If you believe they could be an asset to your business, then don’t waste time and find one soon. Ask other professionals who they use and check for recommendations.
Propel CFO should be your first stop. With accounting, CFO, and tax services, we can help your company thrive when it comes to accounts. Contact us here to speak with one of our expert staff.