Outsourcing accounting services to a third-party provider is an excellent way for mid-sized businesses to save time and money. These providers can offer sophisticated financial automation solutions that make it possible for smaller companies lacking the in-house resources to meet all their financial goals. Read on to find out the functions and benefits of outsourcing the accounting department.
THE BENEFITS OF OUTSOURCING ACCOUNTING SERVICES
1. IMPROVED OPERATION
If you’re looking for a way to maximize your time and energy, then outsourcing your accounting is the perfect solution. These experts uphold high industry standards while ensuring that every financial report meets regulatory compliance requirements. This leaves you with only one task; to manage and grow the business.
2. DAILY MONITORING
At Basis, we assign a dedicated team to your company to provide daily monitoring of accounting data for better business decisions. This will help you stay ahead of the curve and make informed choices about how best to use your resources. We’ll identify opportunities in real-time by understanding industry trends while focusing on critical metrics such as revenue growth or productivity rates that might otherwise be missed in the previous years.
3. SKILLED ACCOUNTANTS
If you’re not a skilled accountant, chances are the person running your numbers isn’t either. If they have a financial background or degree, it’s probably in something else, and their core competency is elsewhere. Outsourcing to highly skilled accountants ensures that your books stay up-to-date on time, payrolls get completed on schedule without penalties due to missed payments or inaccurate finances.
4. UPDATED PROCESSES
Outsourcing your accounting is a great way to improve the efficiency of your financial processes. Outsourced accountants will help train employees and instill best practices for more accurate data with zero mistakes over time. Additionally, the outsourced personnel will be essential in developing new payroll systems, apps, or other methods. This leads to cutting down on staffing costs.
5. FINANCIAL SAVINGS
Outsourcing your accounting can lower your total cost by eliminating expenses incurred by having employees (benefits, recruitment, training). Plus, it can save you from the negative consequences that come from financial mishaps. These types of mistakes can cost far more than what it costs to hire a team of experienced outsourced accounting professionals.
6. WHEN SHOULD YOU START OUTSOURCING ACCOUNTING?
Outsourced accounting teams are a cost-effective, time-saving solution to your business needs. Below are some of the reasons to outsource an external accountant.
7. Create a business plan
Accountants can help with financial projections, making it easier for you to write a more professional and realistic business plan. However, if formulating your company is the next step on your schedule, be careful when deciding what entity type you want- whether it’s an S-corp or LLC. That decision will dictate how taxes are filed and who has power over certain aspects of your company. This is where expert guidance comes in, so make sure to always have one by your side.
8. Set up compliance procedures
You can’t get away with not paying taxes. Sales tax, payroll, and 1099’s are all essential parts of running a business.
9. Avoid an audit
The process of being audited will be much more streamlined since your books are already in order. Outsourcing accounting to a company like ours also means that you get expert advice, daily reporting, and peace of mind to run your business.
At Basis, we handle all the behind-the-scenes work, so your business runs smoothly daily. Furthermore, outsourcing our accounting services guarantees you up-to-date records and efficient management of your payroll and tax remissions.