EA - Did You Know that Outsourced Accounting Can Boost Business Revenue

Did You Know that Outsourced Accounting Can Boost Business Revenue?

When starting a business, outsourced accounting often falls to the backburner because most entrepreneurs are focused on the logistics of getting the company off the ground: product development, customer service, storefront design, payment processing, and more. It can be easy to get caught up in these logistics, causing you to overlook some of the most important paperwork and financial systems that need to be implemented to ensure your business starts with a strong foundation.

Whether you have big goals for the future or you are starting the business to bring in a little extra cash on the side, bookkeeping and accounting should never be pushed to the bottom of the priority list. In fact, there is a strong argument that outsourced accounting and bookkeeping might be the most important factor that will affect your success in the future. Without a good financial system, you can’t keep track of cash flow, profit margins, annual trends, and other data that will influence the decisions you are making each day.

Accounting Doesn’t Need to Be a Burden

One of the reasons why many business owners don’t prioritize accounting and bookkeeping is because it feels like a burden to keep up with the transactions. If you are focused on business development, then it seems like a hassle to set aside a few hours each week to categorize transactions and reconcile the accounts. Too often, business owners let these tasks fall to the back burner and then eventually face bigger issues in the future when a financial mess occurs.

If you don’t have the time or desire or skills to work on the bookkeeping and accounting tasks for your business, then it is smart to let the pros take over. There is no reason for you to spend your limited time on tasks that aren’t within your specialized skill set. Just like you should schedule an appointment with a dentist when you have a problem with your tooth, it is smart to enlist the services of an accountant when you want to improve your financial systems.

The key is to take action as soon as possible. Don’t wait for a problem to occur before you call an outsourced accounting expert. Instead, you can be proactive in designing the right financial system that will support your bigger goals. Hiring accounting and bookkeeping experts will give you the information and skill set needed to oversee your spending and income, helping to maximize profit margins as much as possible.

Outsourced Accounting Can Boost Revenue

When most small business owners think about hiring an outsourced accountant, they only see the cost of paying for these services. Yes, you will have an expense to get the help that is needed. But instead of this cost being a liability to your company, the money spent is actually a great investment that can help to improve your results.

These are some of the financial benefits you can expect if you choose to hire an outsourced accounting team:

  • Team of Experts: Most small business owners don’t have formal training or experience with bookkeeping or accounting. As a result, a DIY attempt often results in problems and mistakes. Even a few small errors in your financial system can add up to significant problems in the future. Don’t let these issues hinder your success or progress. Hiring an experienced accounting team means that you can bring in the skillset that you need, without spending hours with your head in an accounting textbook.
  • Outsourcing is Affordable: Once you see that accounting skills are needed for your business; you might think about hiring another employee with an accounting background. There are some situations where it makes sense to bring on another full-time employee because of the massive need for skills and support needed in your company. But, more often than not, small business owners don’t require 40+ hours per week of accounting services. Instead, a few hours of outsourced accounting services will be sufficient for financial reporting and tracking. Compare the costs of hiring an outsourced accounting team vs. bringing on another employee, and you will see that it is much more affordable to skip the full-time salary and benefits.
  • Cash Flow Management: Problems with cash flow can bring a company down more quickly than you can imagine. Even if you have consistent income flowing into the bank account, you can still run into problems if there isn’t enough cash to cover the bills and expenses. Additionally, you need to think about the timing of the payments to make sure the money is available when your bills are due. An accounting team can help you in designing the right system for cash flow management. As you track, budget, and control the flow of money, you can reduce overall costs and increase profit margins at the same time.
  • Cutting Unneeded Expenses: One aspect of cash flow management is looking at the unnecessary expenses that might be cutting into your profit margins. How often do you have small (or large) bills moving through the account that aren’t worth the cost that you are paying? An accounting expert can help you evaluate your spending to identify any areas where you could potentially save money. At the same time, look at the activities and tasks that bring in the most money. Then find ways that you can expand your efforts with the things that are working best to increase revenues for your business.
  • Tax Strategy: Taxes can be a pain point for many business owners, especially when they don’t have the right strategies in place to set aside the right amount for the IRS. It can be a stressful time when tax deadlines approach, and you don’t have enough money in the bank. Not only will an outsourced accounting team help you create a system so that you have the taxes set aside in an account. But you can also create a safe, yet aggressive, tax strategy to leverage all of the write-offs and deductions that are available for your business. This strategy can be beneficial to minimize your tax burden and save you money each year.
  • Business Growth Opportunities: If you are currently spending time on bookkeeping and accounting tasks, what is the opportunity cost of those hours? Consider the way you could be using that time to boost your business efforts and increase revenue. Handing off the bookkeeping responsibilities to an accounting expert means that you can dedicate more of your week to business development, marketing, and client relationships. It’s hard to put an exact value on the potential growth that can come from these activities. But you will see how much these activities can add up over time.
  • Compliance and Regulations: Also consider the money that is saved due to compliance and legal regulations. For example, if you attempt a DIY approach for tax preparation and a mistake is made on the tax filing, then you could be facing a very expensive bill if the IRS finds the mistake. Not only do you have the pay the difference, but you will likely need to hand over the cash for late fees, interest costs, fines, and more. These unnecessary costs can easily be avoided by hiring an expert team to oversee tax preparation and anything else that might affect your company due to financial compliance, laws, and regulations.
  • Financial Reporting Accuracy: When you need to make significant decisions for your company, financial reports can be helpful so that you can see the trends, profit margins, and cash flow. For example, it is hard to know how much money can be put into business development if you don’t have a clear picture of the amount of money that is available. An outsourced accounting team will ensure that your financial reports are accurate. As a result, you can pull these reports on demand to get real-time information about the current financial health of your company. This information will improve your decisions and help with the overall management of spending, employees, and more.
  • Fraud Reduction: An in-house financial management system increases the risk of fraud, especially when you don’t have the right checks-and-balances in place. Even if you think that you can trust your team, there is always a risk that someone will try to skim a little off the top. Whether the employee tries to steal money, or they are taking some of the inventory home, it can hurt your profit margins. Hiring an outsourced accounting and bookkeeping team will give you peace of mind in knowing that you have good financial systems in place to catch fraud before it turns into a big problem.

At Easier Accounting, we offer the skills and services you need to build a solid financial system for your small business. If you are considering outsourced accounting services, then we invite you to contact our team right away to learn more about the available services. Call us at your convenience to see how these accounting and bookkeeping solutions can help to boost your business revenue: (888) 620-0770.

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