Why a mid-sized business should outsource accounting [INFOGRAPHIC]
Once only reserved for larger organizations, the availability of advanced financial automation solutions and cloud-based systems have made outsourced accounting accessible for the masses. Today, companies of all sizes utilize cloud technologies and outsource their accounting to dedicated professionals.
If your mid-size business isn't yet reaping the benefits of outsourcing your accounting or bookkeeping operations, here are five benefits your company is missing out on:
When you hire an outsourced accounting firm, you can rest easy knowing your accounts are in the hands of experts. These individuals uphold high industry standards and ensure that your financial reports meet regulatory and compliance standards.
You, in turn, can focus your time and energy on business operations, goals, and, most importantly, growth. By spending less of your time paying bills and processing payroll, you'll be free to redirect your time into managing and growing your business.
An outsourced accounting team allows you to keep track of your data daily. At Basis, we assign a dedicated team to your company, allowing you to access your accounting records when you need them. Daily reporting will enable you to stay ahead of the curve and make better, more informed business decisions. In addition, an outsourced team will help your business scale by understanding the data and making recommendations on what the numbers show.
If your business is handling its accounting, chances are the person running the numbers isn't a master accountant. Even if they have a financial background, it's probably not their core competency. Outsourcing your accounting to a team of highly skilled professionals ensures that your books are always up to date, payroll is completed on time, and you're not at risk of penalties due to missed payments or inaccurate financials.
One of the most significant benefits of outsourcing your accounting is hardly ever thought of, as it provides an opportunity to improve your financial processes. Outsourcing accountants instill best practices and controls to help improve the efficiency of timeliness of your data. Whether it's utilizing new accounting programs and apps or developing new payroll processes, your company will benefit from the knowledge of these dedicated accounting professionals.
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 cost to hire a team of experienced outsourced accounting professionals.
When should you start outsourcing accounting?
Hiring an outsourced accounting team will save you money, time, and headaches. However, there are several critical points when you want to have an outsourced accountant to help you with the process.
Writing a business plan - accountants can help with financial projections, so you can write a more professional and realistic plan.
Forming your business - you should be careful when deciding what form of entity you choose, whether it’s an S-corp, C-corp, LLC, sole proprietorship, etc.… and that is where an expert comes in.
Setting up compliance procedures - will you be charging sales tax, running payroll, or issuing 1099s? These are all items you will need to be compliant in.
To avoid being audited - if you get audited with an outsourced accountant, the process will be much more streamlined since your books are already in order.
Many mid-sized businesses benefit from outsourcing accounting. You not only save money, but you have access to expert advice, daily reporting, and a piece of mind.
If you are ready to make life easier and hire an outsourced accounting firm, contact Basis 365 today. We handle all the behind-the-scenes work to make your company run smoothly. In addition, hiring us means that you will always have the most up-to-date accounting records.