According to a 2017 KPMG survey, nearly 40 percent of small and mid-sized companies said they planned to increase their use of outsourced accounting. Once reserved only for larger organizations, the availability of advanced financial automation solutions and cloud-based systems has brought outsourced accounting into the mainstream. Today, companies of all sizes are taking advantage of what it can do for their businesses. If you’re not already reaping the benefits of outsourcing your accounting and bookkeeping operations, here are five big benefits you’re missing out on:
- Improved operational efficiency. As an expert in your field, it’s critical that you use your time and energy to focus on your business operations, goals and growth, not mired down in the nitty gritty. By spending less of your day paying bills and processing payroll, you’ll free up valuable time that can be redirected back into managing and growing your business.
- Savings. Outsourcing your accounting can actually lower your total costs by eliminating expenses related to employee benefits, recruitment, and training, among others. And it can save you from the negative consequences of financial mistakes. Mishaps like those can cost far more than the price of hiring an outsourced accounting professional.
- Expertise. If your small business is doing its own accounting, chances are the person in charge of the task isn’t a master accountant. Even if someone on staff has a financial background, it’s probably not his or her core competency. Outsourcing your accounting function provides you access to highly skilled accountants with extensive experience. It ensures that your books are always up to date, payroll is done on time and you’re not at risk of penalties due to inaccurate financials or missed payments.
- Better processes and procedures. One of the biggest hidden benefits of outsourcing your accounting function is that it provides an opportunity to improve your financial processes. Outsourcing vendors instill best practices and controls that help to improve the efficiency and timeliness of financial data. Whether it’s utilizing the latest accounting software or improving your payroll processes, implementing up-to-date accounting procedures can improve service levels, create better cash flow and position your company for growth.
- Peace of mind. With timely, accurate accounting records and reporting, you’ll gain total visibility into the financial health of your business, so you can feel confident that you’re making the most informed decisions. You can also rest assured that your financial information is correct and avoid any potential threats of fraudulent activity. With experienced accounting professionals you can count on, outsourcing just makes good business sense. When your financial operations are in order, you can relax and focus on growing your business.
Outsourced accounting is the perfect solution for start-ups and small to mid-size businesses at any stage of the game. The sooner you start outsourcing, the sooner you can realize its many benefits. Ready to learn more about how Balancing Act can simplify your financial environment? Contact Mary Jo to arrange a consultation at your convenience.