- On June 5, 2020
A crucial decision for small business owners is deciding when to outsource their financial processes. They might be able to perform accounting functions for a while, but as the business gets more revenue, they should actively consider getting a small business accountant.
When they’re ready, they can hire someone in-house, but an outsourced accounting service is a good way to balance the business’ intermediate needs and goals. Here are some ways outsourced accounting helps a small business to grow.
1. You’re getting a built system
When you use outsourced services, you are essentially renting out another company’s accounting system. Provided that you’re hiring people with a track record, they’ll have a system for invoicing, bill payments, taxation, and others. Outsourcing your accounting means that you don’t have to come up with those workflows and teach them to your staff; there will be someone else to do that for you, all you have to do is ensure accurate record-keeping.
Accountants will also have the latest software to help them make their work more efficient. Many providers use cloud computing solutions to help them with their tasks, so if you hire an outsourced accountant, you’ll get access to those tools as well.
2. They can ensure confidentiality
An in-house accountant is privy to the details of your company’s affairs; they might also be friends with employees, which may or may not harm your company culture. An outsourced bookkeeper, by contrast, is not invested in the politics of your office. They can be more objective about the numbers they are crunching and keep things like payroll data confidential.
Furthermore, outsourced business accountants have security measures in place for data protection. They have programs for password protection, use firewalls, and virus managers, and implement all sorts of policies that ensure transactions do not happen through just one person.
3. They’ll deliver efficiently
If you get an experienced accountant or a team that’s been working for a while, they will have a system that works faster than an in-house one. Outsourced bookkeeping service providers have more than one client, so it is part of their job to produce quality work in a short amount of time. Unlike company employees, who might have their hands tied with bureaucratic red tape, outsourced bookkeepers will get work done quickly.
Furthermore, since they have different clients who are likely to be in various industries, they have the advantage of learning best practices across disciplines. An outsourced team will be able to pick what works for various clients and apply those for problems in different fields.
4. You’ll be cost-effective
Outsourced accountants are more affordable than hiring an in-house team. Since you don’t need to provide them with benefits like medical or dental, you can save up to 40 percent from outsourcing compared to hiring a full-time worker.
Some companies also provide full-service support. You get CFO and tax preparation services from them. This means you have only one company to consult regarding all aspects of your company’s finances, which is very convenient.
Outsourcing a small business accountant is a good way for a business to scale their operations while keeping an eye on their cash flow. Get an experienced team or accountant who already has systems in place and can ensure confidentiality and efficiency.
If you need quality accounting services in Melbourne and South Morang, choose Think Wiser. We provide full-service accounting, bookkeeping, and tax services to small businesses in Victoria. Get in touch with us for more information.