What Should You Expect from Outsourced Accounting Services? A Guide
AdminAssistMarch 11, 2022
If you're a staffing agency looking to scale your business operations, you may be concerned about keeping up with your accounting. But you're not alone -60% of small business ownersin the US say they aren't knowledgeable when it comes to accounting.
But with outsourced accounting services, you can be confident about your business's financial health while dedicating your time and energy elsewhere.
Read on to learn more about what you can expect with outsourced accounting services.
What to Expect with Outsourced Accounting
Outsourced accounting is exactly what it sounds like - businesses will hire an outside firm or individual to take care of their accounting for them. Here are a few of the specific goals that an outsourced accountant will achieve.
Improve Cash Flow
An outsourced accounting team will conduct a thorough cash flow analysisof your business. Any time money enters or leaves your company, they see it. This analysis will help them determine your company’s financial health.
They will create cash flow projections for your next quarter and next year to help you see when changes need to be made and what your priorities should be.
Accounting companies can also use the cash you have on hand to track your expenditures and earnings. If a particular date arrives and your company doesn’t have the cash that was predicted, the account will look into why.
Solve Financial Issues
Your outsourced team will take a look at your numbers and provide advice about issues that you are facing. The accountant will help you identify problem areas that are hurting your income or the poor spending habits that your business has employed.
They’ll also make sure that all of your records are up to date and help you fulfill responsibilities before they become costly later.
Unless you have a degree in accounting, any time that you spend on your books could be time better spent on another task that you specialize in. Meanwhile, an accountant could complete that task in a fraction of the time.
Outsourcing accounting services will save you precious time and resources so you can focus on the parts of your business that command your full attention. By letting the accountant specialize in their skills and letting yourself focus on yours, everyone will be maximizing their time andachieving maximum productivity.
Is Outsourced Accounting Right for Your Business?
If you’re considering outsourcing your accounting functions, you may not be sure if it’s the best decision for your company. Here are a few factors to think about.
Can you handle a full-time, in-house accounting service? You’ll have to be responsible for this employee’s training, full salary, and benefits. You’ll also have to cater to their schedule.
If this sounds like something you don’t want, you may want to outsource your accounting. Your outsourced accountant will only work when you need their services, so your financial responsibilities will be far lower.
Accounting services require up-to-date technology in order to give you the best results. Advanced technologies will give you a competitive edge. If you can’t afford to or don’t want to invest in this technology, you should look for anoutsourced accountingteam that can give you access to great information in real-time.
The most obvious sign that you need to outsource your accounting is if you’re finding yourself lacking crucial information. When it comes time to make an important business decision, you’re scrambling to collect the data that will guide you.
Spending the money on an outsourced financial professional is the first step toward getting the information you need, especially if you have difficulty interpreting and understanding the numbers you do have.
Do errors in your books keep appearing? This means the person who is in charge of your finances is not doing it properly. Resolving these errors is stressful, expensive, and time-consuming.
You can save yourself the headache of fixing constant mistakes by outsourcing your accounting services to a professional who will make little to no errors and will keep you from having to deal with them.
Benefits of Outsourced Accounting
Based on your staff and technology, your business would likely benefit from outsourced accounting. But even if you don’t think you need it, you’ll still have numerous benefits by switching to outsourced accounting services now.
As your business grows, you’ll need to have the right software and expertise on hand to make important business decisions, grow your workforce, and increase production. The last thing you want to do during a transitional period is to worry about meeting your accounting needs.
Outsourcing your account services will give you the tools you need as your business grows. Depending on what your business needs and when outsourced services can scale up or scale down, you’ll only have to pay for the time and services that you need.
Peace of Mind
In addition to making little to no mistakes, your outsourced accounting team will be the most up-to-date on government regulations and penalties. This means that you can be confident that your business operations are above board and being accurately measured.
When someone within your team has access to your books, sensitive information can be shared, even accidentally. When you're leading a staffing agency, the word may get around quickly.
But the team of experts handling your accounting will keep your information safe and confidential. They’ll use certain technology functions to protect data from breaches or threats, and they won’t communicate with your employees about the state of the company.
Using Outsourced Accounting Services
Regardless of the size of your agency, you'll likely benefit from using outsourced accounting services. But if you're scaling quickly, there's no better time to make the switch than now.
Try our savings calculatorto see how much you could save by outsourcing your accounting services. For more information, visit our blog!