The long-term success of your business will be determined by just how well you maintain your finances today and plan for the future. There’s simply no downplaying the importance of doing things right.
Unfortunately, too many business owners don’t get the help they need until they’re in financial trouble, like when their business is faced with an audit. At that point, it’s like trying to mop the floor while the water faucet is running and the sink is overflowing (i.e., it’s a big ole mess).
There are many benefits of outsourced accounting services when it comes to keeping your business on the right track. Greater efficiency, security, and long-term cost savings, for starters.
Here are 10 reasons why you should make this worthwhile investment for your business before the need for help becomes an emergency.
10 Benefits of Outsourced Accounting
1. Save time and money
You might think you can’t afford to outsource your accounting. But the reality is the cost of cleaning up a major financial mistake could be far more expensive than preventing it in the first place. Even worse, a single mistake could potentially lead to the failure of your business.
What about an in-house accounting team? Well, the overhead costs of an in-house team of accountants and bookkeepers can add up quickly. There’s the mandatory insurance and taxes involved with hiring employees, as well as health benefits, payroll, and facility costs. Plus, there’s the time involved with hiring, training, and managing an in-house team.
By outsourcing, you can save time and money, not to mention a whole lot of peace of mind.
2. Streamline your operations
Efficiency is the name of the game when your business is rapidly growing. We all want to get more done, faster.
Performing the day-to-day financial tasks can really eat up precious hours of the day. Rather than chasing after unpaid invoices or manually issuing checks, you can automate these processes so you barely even have to think about them. Using an online bill payment platform like Bill.com can help to streamline your Accounts Payable and Accounts Receivable.
3. Real-time access to financial data
Remember life before the cloud? It was basically a flurry of paperwork, staplers, calculators, file folders, and filing cabinets. And if you lost a single piece of paper, you’d want to curl up in the corner and cry.
Cloud accounting software has transformed finance and accounting for businesses of all sizes. Real-time financial data is available at the touch of a button – virtually anytime, anywhere. If you want to know your business’s financial standing at any given time, all you need is your preferred device of choice and access to the Internet.
4. Reliable & accurate financial records
It’s easy to fall behind on balancing the books for a small or mid-sized business. This results in a bit of a guessing game when it comes to understanding the true financial health of your business.
Having consistently accurate and up-to-date financial records can be a total game-changer for your business. You’re able to have greater confidence in your numbers and make well-informed decisions about the future. Even better, you can also easily identify and address any issues that could be negatively impacting your cash flow.
5. Reduce risk for your business
Businesses both big and small need to maintain proper internal controls to protect against fraud, theft, and basic human error. However, when your business is lean on resources and has just a few people filling multiple roles, this can mean less oversight and greater risk. This could land you and your business in a heap of trouble with the IRS, while wrecking your credibility with customers and investors.
By outsourcing your accounting and bookkeeping, you have a clear separation of duties and greater oversight to help mitigate any risks.
6. Get support from bonafide financial experts
You simply can’t be an expert in everything, no matter how hard you try (sorry). You shouldn’t have to juggle the responsibilities of running a business while trying to be a financial wizard at the same time.
Get a team of experienced virtual accountants at your service that will handle all the ins and outs of your company’s finances, without requiring a lot of oversight on your part.
7. Be better prepared for tax season
If you find yourself scrambling at tax time to organize your financial records, track your expenses, and calculate your overall earnings, you’re doing it wrong.
When your finances are maintained consistently throughout the year by an outsourced accounting service, tax season takes on a whole new meaning. You’ll feel less dread and dismay, and you might even be surprised at how smoothly filing your taxes can go.
8. Stay on track with payroll
The success of your business relies heavily on the happiness and well-being of the people behind it. You need to always take care of your employees and make sure they’re paid on time.
An outsourced accounting team can not only help you to issue accurate, on-time paychecks to your employees but will also make sure your payroll taxes are kept up to date.
9. Breathe easier in times of crisis
There will always be external factors beyond your control that might negatively impact your business. Financial downturns, natural disasters, global pandemics – sometimes all of the above, and all at once (we’re looking at you, 2020).
Having the rock-solid support of a financial accounting team is never more important than in times of crisis. This is just another reason why maintaining accurate, up-to-date records is so critical.
For example, when our clients at FusePhase suddenly needed to apply for financial assistance as a result of the COVD-19 crisis, we were able to prepare and submit their applications quickly because their finances were already in order.
10. Focus more on growing your business
This is perhaps the most important benefit of all. When the day-to-day accounting and bookkeeping tasks aren’t needlessly sucking up your time and energy, you and your staff can focus more on improving your core business.
Also, if your outsourced accounting firm offers the added bonus of an Operational CFO, you can have greater financial insights that will inform your overall business strategy. The guidance of an Operational CFO can be a critical asset when it comes to forecasting and budgeting through every stage of your business.
Here’s the skinny
Outsourced accounting services are a way to get the critical support and guidance of financial experts when you need it. This is especially important as your business scales and evolves, while also navigating through the inevitable ups and downs. With a knowledgeable and reliable team backed by cloud accounting software, you never have to guess about the financial health of your business.
Interested in outsourcing your accounting?
FusePhase is a virtual accounting team based in the San Francisco Bay Area. We do more than just push numbers around. We work with our clients to ensure they have a better understanding of what their numbers mean to their business.
Reach out to us today if you’d like to learn how we could work together!