As your business grows, it becomes increasingly difficult to handle day-to-day bookkeeping while also focusing on growing the primary business. Outsourcing accounting services allows you to concentrate on growing your business while leaving the accounting to the experts.
Moreover, a growing business requires more than just bookkeeping and basic accounting software. It deserves a formal accounting department that can provide specialized services tailored to the unique needs of your business.
When should a company switch from bookkeeping to outsourcing accounting services?
As a business grows, there comes a point where a bookkeeper or bookkeeping software can no longer meet the needs of the owner. This is when management accounting becomes necessary and accounting outsourcing becomes a more appealing option.
For business owners with a growth mindset, outsourcing accounting services is seen as a way to quickly advance to managerial accounting and gain a competitive edge without requiring significant time or financial investments upfront. Therefore, recognizing when it is time to transition from bookkeeping to outsourced accounting services is critical for a company’s continued growth and success.
Still not convinced? Here are some compelling reasons to consider professional outsourced accounting services over QuickBooks:
FOCUS ON YOUR CORE BUSINESS
Accounting is not a core competency for most businesses and non-profits. According to business management experts, any function that diverts resources from making money and is not related to a company’s expertise should be outsourced. Outsourcing accounting allows management to focus on areas of the business that drive sales, service, and ultimately, profit.
ELIMINATE IN-HOUSE BURDENS
Using other people’s resources (OPR) rather than employing, training, and managing additional accounting employees can save a company time and money. Business owners who are focused on strategic growth do not want to add to their workload by managing an accounting department.
One of the most significant advantages of outsourcing accounting is access to accounting and business technology expertise. Outsourced accounting specialists stay current with new technology that can benefit your business, devoting time and resources to ongoing research, training, and technological advancements.
COMPLIANCE VS. RELIABILITY
Outsourced accounting services provide financial knowledge you can trust to make smart financial decisions. Bookkeepers often focus on tax and audit compliance, whereas outsourced accounting services provide actionable financial insight that enables data-driven decisions.
PEACE OF MIND
Accounting is best left to a team of accounting experts who can ensure that a company’s financial data is accurate and of high quality, freeing management to focus on sales, client relationships, and building the company’s value.
INCREASED OPERATIONAL EFFICIENCY
Outsourced accounting can help your company or nonprofit improve operational efficiency. The outsourced accounting team can design and implement a financial system that combines automation and integration to improve financial reporting. Automation allows you to spend less time working and more time on your business by speeding up operations.
A business owner who keeps a close eye on the finances of their organization is better prepared to drive it forward by answering important questions such as pricing accuracy, profitable customers, hiring needs, marketing spending, and cash flow. This degree of skill is difficult to achieve with a regular bookkeeper, requiring outsourcing accountant services to make strategic decisions that affect profitability.