If you are self-employed or if you run a small business, and you do your own accounting, you might want to re-evaluate your strategy. Sure, most likely you can do it on your own or, maybe, hire an in-house accountant, but is that really the most efficient approach?
It all comes down to how much your time is worth, and how knowledgeable you are with accounting. When you choose to do one thing it usually means that you are deciding not to do something else. And if it is something of greater value, then you should rethink your strategy.
What's interesting, most of us tend to underestimate the value of our time. Bill Gates loses money each time he stops to pick up a dollar bill that's lying on the ground. Obviously, Bill is an extreme example, but if we think about it, there are actions that we take throughout the day, doing which we also lose money.
A certified, professional accountant with experience will usually have a trick or two up his sleeve that will help you to save those hard-earned financial resources while also being in accordance with local legislation.
1. Better data - better decisions
By outsourcing a dedicated accounting professional you will gain access to executive-level financial expertise. What's even better is that you won't have to pay their full-time wages, and at the same time, you'll receive crucial financial data which then can be explained to you so that you can make the best possible decisions for your business.
Simply having the data is not enough. You also need to understand it before you can start implementing it in your decision-making processes. This is where the expertise of your outsourced financial experts will come in handy. Because their business heavily depends on how well their client businesses are performing, it is in their best interests to provide you not only with highly accurate data, but also to make sure that you completely understand it, and that you are making well-educated conclusions.
2. On-time and accurate
Accounting agencies are held to high standards and so are their employees as the quality of their work directly correlates with the agency's business and relations performance. It is not only the mutually signed contract or an agreement that's holding the bar but also the government with its regulations and strict deadlines.
Usually what makes meeting deadlines the most challenging is poorly managed document flow. Expense documents are a big part of financial statements, yet much too often expense documents reach the accountant at the last minute and all at once. So the accountant suddenly has a pile of documents to digitize. This task is even more tedious if the accountant is performing the digitization of expense documents manually.
Top-performing accounting agencies and their employees are usually well equipped and have the best tools for any task. This enables them to save time on what can be automated by using tools for digitization like CostPocket and gives more time to focus on the analysis of the data and coming up with the best possible suggestions while also meeting all the deadlines.
3. Cost savings
Wages and taxes are only part of costs that occur when you hold an in-house accountant or financial department. You need and also are expected to train, supervise, equip, and provide benefits to your team. So it means that you either have to devote your own time to do it, or you have to hire someone else to do it for you and pay even more in wages and payroll taxes.
Even if the hourly rate of an outsourced accountant or any other financial specialist might scare you at first, remember that it comes without all the other expenses and headaches. There's usually more than what meets the surface when it comes to business and finances.
It is also worth mentioning that usually workload for accountants is not evenly distributed so more often than not, accountants work in sprints, and you are left with the task of trying to fill the full-time employee's schedule with meaningful work.
It just makes sense to pay exactly for what you need and nothing else.
4. The one thing you can't buy - time
Just because you can't buy more does not mean that you can't save more. This is an obvious one, but let's be honest we humans neglect time saving, and we try to live faster when in reality we should live smarter and more efficiently.
One way to do so is to delegate. Very often people hesitate to trust someone else with a particular task. While it might be reasonable sometimes, quite often those tasks really should be delegated to someone else, so that you could devote your time and energy to tasks of greater value.
Accounting is certainly one of the most important tasks that can and should be trusted to someone else. While crucial, accounting and financial analysis is also very time and energy demanding. To perform it properly you would have to work long hours just to collect all the necessary documents, data, calculations, etc. Then you would have to read and interpret all of that. It just does not pay off.
Outsource it and your business will thank you for it!
People make mistakes. If only one person in your team has the financial expertise and the ability to identify a mistake, you are putting your business at risk. If the same person is the one who makes a mistake - then there is no one to catch it.
Of course, to employ a dedicated team to avoid this is one way to go, but as we already know, in-house teams cost a ton. This is why it makes sense to outsource financial services. Not only will you lower the chances of human error, but you will also receive the service of a fully dedicated financial team for whom helping to grow and strengthen your business will be one of the top priorities.
While it might be intuitive to keep it all in the family by employing an in-house accountant or a financial team, maybe it's best to check your intuition's practicality. You might find that outsourcing accounting comes with a lot of benefits that have the potential to boost the long-term performance of your business.