Your accounting system is the backbone of your business. Daily operating tasks like paying bills, sending invoices, managing payroll, and recording your company’s expenses are accounting tasks that affect every part of your business. Without a reliable, accurate accounting system, you run the risk of losing money and stifling growth opportunities.
Outsourced accounting is an efficient way to handle your business’ financial operating system. Whether you own a new business or your current accounting system is outdated or inefficient, outsourced accounting offers you a cost-effective bookkeeping solution.
Explore these eight benefits of outsourcing your accounting for your growing business to find out how this alternative to an in-house accountant can work for you.
What are Outsourced Accounting Services?
An outsourced accounting service offers business owners a way to manage accounting and bookkeeping tasks without performing the job themselves or hiring in-house accounting staff. Outsourced accounting companies, like AFC, employ professional CPAs who are knowledgeable in accounting and bookkeeping transactions. They also utilize the most up-to-date accounting software to ensure that your financial data is accurate and readily accessible to you.
Outsourced Accounting Advisory Services typically handle the following types of transactions for your business:
- Reconcile payments and receipts
- Update and backup financial data
- Manage inventory records
- Review employee timesheets
- Handle invoicing and receiving
- Scan or input documents and receipts
- Produce and review financial statements
- Prepare quarterly and yearly budgets
How Outsourced Accounting Benefits Your Business
There are numerous perks to outsourcing your accounting. Below are the top eight benefits of using an outsourced company to handle your accounting and bookkeeping.
- Saves Time
Accounting transactions take time to complete. Performing the required daily record keeping and inputting information, not to mention compiling financial reports, takes time away from other aspects of your business.
When you hand the responsibility over to an outsourced accounting professional, you take back that time to focus on different areas of growing your company.
- Cost-Effective
Outsourced accounting is cost-effective. It costs thousands of dollars to hire an employee to perform accounting services. You first have to find someone qualified for the position, hire and train them, pay their salary, and add insurance and benefits costs.
Working with a company like AFC, you get professional accounting services for a fraction of the cost. If your focus is on growing your business, outsourcing is a cost-effective way to manage your finances without hiring for the position in-house.
- Efficient, Centralized Accounting
What does your current accounting system look like? Do you use pen and paper ledger books, a computer spreadsheet, or a free tool online? While these methods may work when you are just starting your business, they quickly become inefficient as your business grows.
Working with an outsourced accounting company provides you with a centralized accounting system that is efficient and easily accessible. All your financials are safely stored in an online, cloud-based system in one location, preventing data loss.
- Access to Professional Knowledge
One of the biggest benefits to your business is the professional knowledge the right outsourced company brings to the table. AFC’s team of certified accountants has years of experience performing accounting tasks for industry-specific companies. This means we know exactly what your business needs in terms of accounting and bookkeeping services.
We are experts in using accounting software like QuickBooks and will keep your business financially compliant with regulations and requirements. An outsourced accounting company uses its expertise and insights to benefit your business.
- Accurate Numbers
With outsourced accounting, you are less likely to run into accounting errors than if you perform these tasks in-house. Outsourced accounting companies exist to provide you with accurate financial data. They use updated accounting software to reduce errors and have several checks and balances to ensure accuracy.
Understandably, business owners or staff who have not had special training in accounting or bookkeeping struggle to keep their numbers 100% accurate, so using an outsourced accounting service specializing in the area is a significant benefit.
- Easy Analysis
When you use an outsourced accounting service, you reap the benefit of easily accessible numbers that allow you to analyze trends within your business’s accounting and bookkeeping sector.
You can analyze the data from previous years to determine your business’ growth and see where you may be losing or making money. These analyses are put into financial reports that give you vital information on which to base important business decisions.
- Up-to-Date, Industry Standard Software
When you work with an outsourced accounting company, you get access to the most up-to-date accounting software. There are multiple accounting software programs available on the market, each with its own features to benefit businesses of different sizes and types.
To access these programs, you have to buy a costly licensing fee, install it yourself, and learn how to use it or train your employees. When you outsource your accounting, you immediately gain access to the best and most up-to-date version of accounting software appropriate for your business.
- Long-Term Planning
With outsourced accounting services, long-term planning becomes less of a guessing game. Outsourced companies like AFC provide you with financial statements and wealth management solutions that give you accurate projections from which to operate.
You can reasonably predict business growth and tax liability to determine your business’s financial standing in the coming years. All this data supports your long-term vision for the business and helps you develop an operational plan.
Additional Outsourced Services
Outsourced accounting offers your growing business many benefits. In addition to outsourced accounting, AFC offers businesses Tax Services, Accounting Software Consulting, and Compilation and Review Services. Consider utilizing AFC’s Tax Services in conjunction with our Accounting Advisory Services to develop a tax plan that integrates with your accounting system year-round.
You can also take advantage of our Accounting Software Consulting if you want to handle your own accounting but need help choosing and learning the right program.
Outsource With AFC
To reap the benefits of outsourced accounting, reach out to AFC today. Our Accounting Advisory Services offer you a professional, trustworthy solution to managing your bookkeeping and accounting systems.
Let AFC save you time and money with efficient, accurate accounting methods that allow you to focus on growing your company and reaching your financial goals. Schedule a visit online or call us at (561) 336-5755 to learn how we can help you grow your business.