In the search for cost-savings and efficiency, businesses have begun to look at whether they need to retain their in-house accounting staff. What they’ve found is that there are some significant benefits to working with an experienced financial team--and that choosing to outsource their accounting services could be an important step in the growth of the business.
Outsourced accounting means having the numbers you need to run your business, without having to crunch them yourself. While there is an ease and many pros to working with this type of service, there are a few cons that may make the experience less appealing.
What is Outsourced Accounting?
Outsourced accounting partners provide financial services and can be thought of as an extension of your team. They help you manage your books and work closely with you to ensure you are making the right financial decisions to propel your business forward.
Partnering with an accounting solution is a proactive approach. Instead of “catching up” on the financial matters, you’re actively keeping things up-to-date.
Pros and Benefits of Outsourced Accounting
1. More Cost-Effective
A study by Deloitte found that 70% of businesses turned to outsourced accounting as a way to reduce cost. Because hiring an outsourced accountant eliminates the need for an in-house accountant, the cost for the service is often cheaper. You will receive equal benefits of a finance-focused employee without having to pay overhead costs like paid time off, medical benefits, and retirement funds.
2. A Proactive Approach
Outsourcing your accounting will put you ahead of the game. It alleviates the need to worry about how, when, and who is going to oversee your books. Additionally, they will be able to spot any areas in your cash flow that need adjustments. This allows you to make changes before it’s too late, keeping your business on track.
3. Improved Accuracy
Hiring an outsourced accounting service typically means hiring a team. Instead of just having one in-house set of eyes reviewing the work, you can be confident your numbers are accurate because a team will be reviewing and looking them over. This keeps you involved in the process and reduces the amount of time spent on accounting—all while improving confidence in your finances.
4. Better for Growth and Positive Change
Oftentimes, in-house accountants focus on the current numbers. While this is necessary, it leads to placing the future of the business’s financials on the back-burner. With outsourced accounting, the team providing you services will place focus on all areas of the business, including laying the groundwork for a strong future.
Potential Cons of Outsourced Accounting
While the benefits of an outsourced accounting partner are compelling, it is important to realize you may run into a few cons. There is a chance you could work with an inexperienced partner, which could lead to hiccups and other problems, not to mention failing to fully utilize the service.
1. Working with an Inexperienced Partner
When choosing an outsourcing accounting partner, it is important to find the right fit. Unfortunately, you may run into an inexperienced partner, which could have an impact on your business. You should aim to find a partner who understands the services you need and can provide you with timely and quality work.
2. A Solution that Only Offers Bookkeeping
Oftentimes outsourced accounting firms will provide limited services. Bookkeeping is universal (for the most part) but financial planning and explaining/mining value from your reports are services that are often not provided. However, they are essential for growth. Without these services, there will come a time when your business is no longer benefiting from just the bookkeeping service.
3. Not Working with your Accounting Partner
A proper accounting partner will be able to provide you with all of the information you need to ensure your business is successful. However, if you are not utilizing the information they provide and reaping the benefits of their services, you will be missing out. Providing them with the information they request and leaving them to do the rest will only get you so far. It is important to use the reports they create, learn from them, and consequently grow your business.
Partner with SIMPLY Financials PLUS
Working with an outsourced accounting partner isn’t always easy. However, when you properly work with an experienced accounting partner you will find that it is more cost-effective, improves the accuracy of your books, and promotes positive growth and change.
If you are looking to reap the benefits of an outsourced accountant, consider working with SIMPLY Financials PLUS. We focus on getting you from where you are now to where you want to be by providing services like accounting systems and internal workflow process design, planning and budgeting, cash flow needs and forecasting, short-and long-term financial strategies, and more.
Visit https://www.simplyfinancialsplus.com/controllership-services for more information!