Business owners make countless key decisions every day to grow their businesses and adapt to current challenges related to the COVID-19 pandemic. One of those key decisions is whether to hire an in-house accountant (or accounting team) or to outsource accounting services to an accounting firm. Here are some questions you may be asking as you consider whether outsourced accounting is right for your business.
What is outsourced accounting?
Outsourced accounting is when you have an outside party perform part or all of your accounting functions. The scope of work can be tailored to your business needs, and it might include bookkeeping, payroll, invoicing, accounts payable, reporting, and advisory services.
What advantages does outsourced accounting offer?
Outsourced accounting provides more timely financial information, because it’s done in real time, so you avoid delays associated with typical internal financial reporting.
It frees up business owners to work on other aspects of their business.
It saves money. Outsourcing accounting can be less expensive than hiring someone in a full-time or part-time accounting role, especially once you consider recruiting, onboarding, and benefits.
It gives you access to a team of accountants with a wide range of knowledge and experience, giving you the latest information about best practices and changes to tax laws that might impact your business.
The technology used in outsourced accounting is constantly improving, offering benefits like online access to reporting, direct deposit for payroll, and electronic payments to vendors.
Is outsourced accounting cost-effective?
It often costs less than hiring an internal accountant, CFO, or accounting department, with the added benefits of quality, experience, and administrative ease.
Is outsourced accounting secure?
SBF uses a secure portal to transfer information to and from clients. Any online programs we use have robust security protections in place. Also, we limit any online access to our clients’ bank accounts and credit card accounts to read-only access.
Do business owners have to leave their current tax accountant?
No, not necessarily. We can work with a client’s current tax accountant, auditor, financial advisor, etc. It is up to the discretion of the business owner. However, most SBF clients prefer a one-stop approach for their accounting needs.
With outsourced accounting, do business owners give up control?
No, you will still have full administrative access to all your financial records and can make changes to the services provided at any time. Outsourced accounting actually gives business owners more control over their business. When you spend less time performing accounting functions, you have more time to work on your business. Also, outsourced accounting can give you custom reporting showing what products or customers are most profitable. This new information ultimately gives you even more control over the direction and growth of the business.
How does a business owner get started with outsourced accounting?
Start by talking to your accountant. Determine which accounting functions will work best to outsource and what everyone’s role will be. For any new outsourced accounting client, we discuss processes – who handles each step of the process, what approval processes should be in place, and what information everyone needs.
How should a business owner choose a firm for outsourced accounting?
Choose a firm with outsourced accounting experience that you trust and that has the same goals and objectives as you do. Finding a firm that has experience in your industry or with a specific software you use may also be a consideration.
To learn more about outsourced accounting through Spoor Bunch Franz, and to explore whether it might work for your business, email us at info@sbfcpa.com.