Scaling a business through outsourcing has become increasingly common in recent years, and that’s a trend that doesn’t seem to be slowing down. In fact, around 30 percent of businesses are turning to it as a growth strategy in response to COVID-19.
If you count yourself among that group, accounting is a good place to start. In the following article, we’ll be talking about why that is by focusing on the five benefits it’ll bring you. Let’s get started!
1. Tax Benefits
The first reason to consider an outsourced accountant is that doing so comes with a number of tax benefits. For starters, it creates a beneficial business expense that you may then deduct from your taxes. Secondly, that accountant will be able to look at your books and see tax maneuvers you can make to reduce the overall amount due at the end of the year.
2. Better Business Management
Scalability is possible when you are free to focus more on the core aspects of your business rather than the operational necessities outside your area of expertise. Most business owners aren’t accountants, so having to take the time to handle that responsibility on their own creates a drain on their business.
If you don’t understand the benefit of outsourcing accounting right away, you will the first tax season! Don’t try wearing that hat. Focus your efforts and resources instead of your strengths.
3. Lower Costs
Hiring an employee to handle accounting for you also means contributing toward health insurance, retirement accounts, Medicare, and Social Security. It’s a lot pricier than hiring an outside accountant or accounting firm to do the work for you.
Outsourcing the expense also creates that aforementioned deduction. It also ensures you’re not doing what these small business owners did, spending three times in labor what they would have in accounting costs.
4. Safeguard Against Fraud
Accounting services from the outside make for a foolproof way of deterring fraud from within your own organization. When your employees are able to see the numbers and manipulate the data, they could succumb to the temptations that come with that knowledge.
- Skimming petty cash
- Embezzling funds
- Hiding personal expenses inside of business expenses
It’s the job of a professional accounting firm to root out that questionable data. They do it by providing audit-like detail of your books.
5. Strength in Numbers
The last reason you should consider outsourcing your accounting is the added expertise it brings to the table. These firms typically do not operate in vacuums of just one proprietor. They have professionals from all walks of life, all forms of knowledge and expertise.
Working with an accounting firm means you get all that knowledge and training working for you at a fraction of the cost. It also limits the probability of vendor errors.
Scaling a Business Gets a Boost When You Outsource Wisely
Scaling a business of any kind improves when you know what to outsource and when to follow through. Outsourcing accounting is a great place to start, and setting the stage as early as possible creates a firm financial foundation.
If you need accounting and CFO help, don’t wait any longer. Contact The Accfin Group today for a free quote.