Wondering whether you should get an accountant to manage the finances of your business? This post highlights 5 reasons why outsourcing an accountant is a good idea.
1. Outsourcing an accountant saves time
As a business owner, the way you use your precious and limited time is crucial. The famous quote by Benjamin Franklin captures this perfectly: “Time is money”.
In other words, time spent trying to understand a complex topic could be used to make your business more profitable. For that reason alone, outsourcing an accountant is definitely worth it. When you put your accounts into the hands of a trustworthy expert, you free time for the aspects of your business you understand, enjoy and earn from.
2. Outsourcing an accountant saves money
The way you allocate the funds of your business is also crucial. To become more profitable, you want to use your finances effectively and cut down on avoidable expenses.
One such expense is paying an accountant to work full-time when they are only needed a few hours a week. This is often the case for new and small businesses. By outsourcing an accountant only when needed, you get quality services for only a fraction of the cost. As your business grows, you can decide to employ an accounting staff, full-time.
3. Outsourcing an accountant gives you confidence when making decisions
One of the most important reasons for outsourcing an accountant versus managing your accounts on your own, is the assurance you have that your decisions are based on accurate and reliable data.
This is extremely important as decisions based on financial data are often the kind to transform the direction of your business and determine whether you are profitable or not.
When you attempt to figure out your accounts on your own, you run the risk of making mistakes and then making decisions based on this flawed data. In addition, you are likely to take much longer to prepare your financial reports, resulting in delays in your decisions.
In contrast, by outsourcing an experienced accounting expert, you can confidently make timely decisions based on the data they provide.
4. Outsourcing an accountant gives you flexibility
Yet another reason to outsource an accountant is the flexibility it brings to your business. When business fluctuates, so do your accounting needs.
Outsourcing gives you flexibility by allowing you to employ the services of an accountant as needed — without having to commit them to your payroll or lay them off when business is low.
Furthermore, outsourcing allows you to employ the services of the best accountants in your area — or even the world — who may want to offer their services without being tied down to one company or business. On the other hand, when you already have and pay an accounting staff, outsourcing other talented accountants can become tricky, and expensive.
5. Outsourcing an accounting team improves the accuracy of your financial data
In point #3, we highlighted the benefits of having an expert accountant manage your finances instead of trying to do it on your own. In this final point, let’s discuss the benefits of outsourcing an accounting team rather than hiring just one accountant.
With one accountant, you are limited to that individual’s skills and knowledge. In addition, you are at a greater risk for fraud and errors since there is no one else to review the data produced by that lone accountant.
In contrast, an accounting team is made up of multiple individuals, each with their own expertise and knowledge to contribute to the accounting process. By outsourcing an accounting team, you benefit from a combined set of skills, greater efficiency and increased accuracy.
Conclusion
Attempting to do your accounts on your own can result in detrimental mistakes and waste time that could be better used on something else. However, hiring an accountant full-time when your business isn’t ready for one, can be a huge and unnecessary expense.
A good solution to both these issues is to outsource an accountant or accounting team, as needed. In this post, we discuss 5 reasons why outsourcing an accountant is a good idea for your business.
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References:
https://www.pboadvisory.com/5-reasons-to-outsource-your-accounting-department/
