Accurate and timely accounting is critical for any business’ survival. At the same time, it’s important for entrepreneurs to pour their energy into core business activities and not waste time on day-to-day bookkeeping. Unfortunately, the cost of setting up a full-time accounting department is prohibitive for small and mid-sized businesses. Thankfully, there is an option to outsource functions such as bookkeeping, payroll, tax services, financing, budgeting, chief finance officer services, and more to a third party.
In this article, we discuss how to know if you are ready to outsource, the benefits, and how to choose the right professional.
How to Know if You Should Outsource
Here is how to know when you need to outsource.
Benefits of Outsourcing Accounting
Choosing to outsource your accounting can be uncomfortable as it means you are allowing a third party to have control over a very important part of your business. But your business could miss out on the following benefits:
How to Choose the Right Firm
Having seen why you need to outsource and the benefits that come with it, the next step is to choose the right firm to outsource your accounting and bookkeeping needs.
First, you need to be clear about the actual services you need. This will help you choose a firm that aligns with your business values.
Where possible, look for recommendations from existing clients on the expertise, experience, and reputation of the firm. Be sure to check the payment schedule that will work best for you, whether they charge an hourly fee or monthly. Don’t ignore what is included on the packages offered. Other things to check for is their package flexibility, the onboarding process (should allow to define roles, expectations, communication policies, and procedures).
Most importantly, ensure that you understand the terms and conditions before signing a contract in case you need to terminate the agreement.
Whether you are a small business, medium sized, or a non-profit, with time your accounting functions will go beyond what your bookkeeper can handle. The best option is to outsource a dedicated team that acts as your accounting department or complements your existing accounting staff.
These articles are intended to provide general resources for the tax and accounting needs of small businesses and individuals. Service2Client LLC is the author, but is not engaged in rendering specific legal, accounting, financial or professional advice. Service2Client LLC makes no representation that the recommendations of Service2Client LLC will achieve any result. The NSAD has not reviewed any of the Service2Client LLC content. Readers are encouraged to contact a professional regarding the topics in these articles. The images linked to these articles are protected by copyright and should not be copied for any reason.