Many small businesses are choosing to outsource certain business functions. This helps small and growing businesses cut costs on services that aren’t directly related to the production of revenue. There are a lot of reasons to outsource some of your core business functions. You can reduce production costs and increase shareholder value. You have access to professional services if you find yourself doing the work yourself
What does it mean, though, to outsource these functions?
Are you wondering how you can utilize outsourced accounting services? Continue reading below to find out more.
What is Outsourced Accounting Services?
Outsourced accounting is becoming the popular choice among small and medium-sized businesses that want to reduce their overhead expenses without affecting efficiency. If you are starting your own business or you are simply studying accounting, it is important that you know the difference between outsourced and in-house accounting. While both methods of accounting operations cover the same general scope of duties, each is different in the way that they are structured. Read on, and find out how outsourcing works and what the benefits of outsourcing all accounting operations are.
Types of Functions Will Accounting Firms Do?
There is a long list of accounting functions that can be provided by a third-party firm. The services that you need will depend on the size of your office and if you already have a professional who handles the books or who files your taxes. Some of the services offered include:
Accounts receivables and payable management
Filing federal taxes and submitting payments
Drafting of financial statements
There is a long list of benefits associated with outsourcing a function like accounting, according to CPA Practice Advisor. Perhaps the biggest benefit is that you can keep the office efficient and reduce expenditures all at the same time. This is not common in business. Outsourcing is cost-efficient because the firm you choose takes on multiple clients and this can keep their costs low. They also hire experienced pros and pay their salaries. This means you do not have to worry about payroll taxes and benefits for another professional because it is handled by the accounting firm.
You also will have peace of mind in knowing that you will pay a flat fee to get functions done. This makes budgeting for the upcoming year much easier. If you invest in outsourced tax filings, the firm will handle any audits and many firms actually pay fines for errors. This passes the burden on to the firm instead of taking it on yourself.
Choosing the right accounting service provider will lead you and your business to new heights. Outsourcing accounting services or enrolling in online accounting software can solve all your financial problems in one place. From your bookkeeping to taxation, invoicing, payroll, and more, accounting service providers have a lot to offer to make accounting hassle-free. You can focus on things for which you started your business in the first place.
The sooner you hire an accountant, the faster the results will reflect. Running a successful business demands a lot; outsourcing accounting services can be a task but do not hire anyone without properly researching their professional competency and policies to verify what will work best for you.
Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! inspires entrepreneurs to build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.