EA - Why Should You Choose Outsourced Accounting Services

Why Should You Choose Outsourced Accounting Services?

Solid financial strategies are key to the success that is possible in your business efforts. Are you setting your company up for future growth and expansion by implementing an effective accounting system? Most small businesses are coming up short when it comes to financial reporting. If it is time to improve your current system or you need to implement a new financial software, then outsourced accounting services might be the right answer.

Strategic Alignment for Your Financial Goals

It’s easy to get caught up in the current responsibilities of running a company: employee management, inventory restocking, product development, and marketing campaigns. These tasks are essential to keep your business going through all of the ups and downs along the way.

Unfortunately, many business owners come up short in one important aspect: financial reporting and strategy. You might be too stressed right now trying to pay overhead expenses and keep up with current costs that you overlook the strategy needed for the future. But looking ahead is one of the best things you can do to set yourself up for success. If you don’t have experience in financial management and business strategy, then hiring an outsourced accountant can be a great solution.

Staying consistent with financial tracking and reporting will give you a clear picture of the financial health of your company. This information can influence the decisions that are made along the way, helping you optimize the current efforts to build for the future. Having a big-picture mindset ensures you will be ready to face anything that might affect your business.

Accounting and bookkeeping services can help you implement an ongoing tracking system that reports details about your spending, income, and movement of the cash through your accounts. Even if your company is profitable, you could face issues if you don’t have enough cash flow to cover overhead expenses. So, it is important you are looking at these financial reports regularly, giving you the option to make small changes and adjustments along the way as needed.

Consequences of Poor Accounting and Bookkeeping Practices

It’s easy to be lulled into a false sense of security if you have money coming into your bank accounts through the sale of products and services. But, one of the most common issues we see among small businesses owners is that they are lacking foundational principles for good bookkeeping and accounting practices.

We understand how overwhelming it can be to set up and maintain a comprehensive system that includes all accounting processes, bookkeeping tasks, and financial administrative responsibilities. You are already carrying enough responsibility in the daily management of your company. Do you feel burdened by adding more to your to-do list with bookkeeping busy work, such as bank account reconciliations?

Most startups and small businesses are facing the challenge of limited staff and no hands-on experience in process management. Your employees are already tasked with ongoing job duties. They don’t have the time or experience to take on complicated responsibilities such as accounting systems and financial reporting. As a result, implementing a good accounting and bookkeeping system often feels impossible for small business owners.

Without the right system, you will see problems start to arise. For example, if you are receiving past-due notifications on accounts payable and you don’t have a good system in place to track client payments, then there’s a pretty good chance that you’re running into cash flow issues. Seemingly small problems right now add up to major issues in the future. Eventually, poor financial reporting and planning could be the downfall of your company.

Are Poor Accounting Practices Hurting Your Company?

How do you know if your lack of accounting organization and structure is hurting your business? If you can answer “yes” to any of these questions, then it’s a sign you need to call an outsourced accounting team right away:

  • Do the accounting and bookkeeping tracking tasks fall to the back burner because you are too busy with other responsibilities throughout the day?
  • If your bookkeeping employee left the company, would you be lost trying to figure out where to pick up the pieces?
  • Have you assigned bookkeeping responsibilities to an employee who doesn’t have formal training or hands-on experience in accounting and bookkeeping?
  • Do you feel like you can never rely on financial reports since the transactions aren’t up-to-date?
  • Is it difficult to identify your exact profit margin without extensive manual work and calculations?
  • Are you using a manual entry system for tracking, such as an Excel spreadsheet?
  • Do you find it difficult to keep up with big payments, such as taxes and payroll, because cash flow is too tight?
  • Are employees using multiple software programs and computer systems without synchronization or tech integration?
  • Is it common that you are always pushing up against tax deadlines and other financial reporting dates because the work was procrastinated?
  • Is it difficult to maintain a consistent schedule with closing and reconciling the books each month?

Don’t beat yourself up or feel overly guilty if you can answer “yes” to one or more of these questions. Instead, recognize that it’s a good indication your business needs more professional support. Now that you recognize the gaps that are occurring in your bookkeeping and accounting system, the next step is to bring in an outsourced accounting pro who can help you get your business finances back on track again.

In-House Employee vs. Outsourced Accounting Services

Now that you can see the need to bring in an expert to help with your accounting systems, it’s time to act to resolve the financial issues you are facing. The most common assumption is that you need to hire an in-house accounting expert. While there is nothing wrong with bringing in another employee when needed, don’t overlook the other options that are available.

Before you hire an employee, you need to understand the burden you are taking on. Not only are you responsible for that person’s training and performance, but you also need to think about the overhead costs that will be incurred. For example, you need to pay for office space to accommodate the new employee’s desk. Additional costs add up for recruiting, hiring, and onboarding. Plus, you have other expenses for computer equipment, office supplies, employee benefits, and more. You aren’t only paying for the person’s wage; you need to carry the financial expense of bringing another fully-burdened check onto the payroll each month.

On the other hand, it is possible to save thousands of dollars every month by leveraging the services of an outsourced accounting team. Instead of paying for an expensive salary and benefits for an in-house accountant, you can only pay for the financial services that are required. Outsourced accounting is significantly cheaper than the overhead costs of an in-house employee.

Industry Experience from a Knowledgeable Team

There’s no reason for you to reinvent the wheel by starting a new accounting system from scratch. One of the biggest mistakes made by small business owners is attempting a DIY approach when it comes to financial reporting. Yes, you can find information online about setting up a bookkeeping system or how to compare various accounting software programs. But these online tutorials don’t compare to the services available from someone working “in the trenches” in the accounting industry.

Choosing outsourced accounting and bookkeeping services can be a valuable way to tap into the knowledge and experience of someone who is working with other companies. This real-world experience with small businesses and start-ups can be a great way to infuse your business with tools and strategies that work. Our accounting team has already built accounting and bookkeeping systems that work. You can rest assured knowing that your business doesn’t need to be the testing ground to find new solutions in the bookkeeping and accounting industry.

Hiring Small Business Accounting Services

Now the question at the top of mind is: where should I go to hire an outsourced accounting service? You might be able to find a local accountant that offers business services. But does that person have a wide range of experience that comes from a company who specializes in small business accounting?

We live in a digital world, which means you have access to some of the best accounting services with the click of a button. An online search can uncover options for your accounting needs, helping you tap into a proven system created for small businesses like yours.

If you are going to hire an outsourced accounting service, then it makes sense to research the company’s reputation. Learn more about the business and their experience before jumping into the services that are offered by them. For more information about quality services for bookkeeping and accounting, our team at Easier Accounting is available to help.

We are proud of the unblemished track record we’ve built with our customers. Over the years, we have worked with many small business owners, helping to create systems that address common concerns such as tax strategy and cash flow management. You can learn more about the services that are available by calling Easier Accounting at (888) 620-0770.

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