The primary goals of businesses are to reduce overhead and increase productivity. One way to achieve these goals is to outsource the company’s accounting tasks to a third party. Here are five benefits of hiring a third-party company to manage your organization’s accounting.
Decreased Costs
When hiring in-house accounting professionals, you need to factor in extra costs such as recruitment, salaries, supervision, employee benefits, accounting software and hardware, and office supplies. You’ll also need to consider the cost of training your accounting employees. All of these costs add to an organization’s overhead and reduce cash flow. You also have to deal with employee absences, vacation and turnover. Outsourcing your accounting minimizes this overhead and allows you to redirect your financial resources toward the company’s growth.
Access to Accounting Experts
Small and medium-sized businesses often lack the expertise to run an in-house accounting department efficiently. When you use an outsourced accounting service, you gain access to a team of knowledgeable accountants who have the knowledge and experience necessary to manage your books accurately and ensure compliance with business regulations and tax laws.Â
Reduced Stress
Managing your businesses’ finances in-house involves an element of risk that adds to the overall stress of running a business. No one wants to end up in trouble with the IRS or be subjected to penalties because of underpayments and other accounting inaccuracies, but this is a reality of many organizations who do lack the tools and training to enforce a robust system checks and balances. By outsourcing your accounting tasks to a third party, you eliminate the stress associated with managing your company’s financial functions.Â
Access to Real-Time Data
When you work with an outsourced accounting firm, you gain access to cloud-based accounting software that allows you to access financial reporting data anywhere you have access to the Internet. Not only does this help you make better decisions for the company, but it also provides your key employees with the real-time insights they need to make a sale, close a deal, or manage a project in real time.
Reduced Risk of Data Breach
Managing your company’s finances in-house increases the risk of data leaks, especially if financial information is being recorded manually. Not only does outsourcing your accounting services help ensure your company’s financial data is encrypted, but it also reduces your risk of internal fraud. With an outsourced accounting service, you’re guaranteed accurate reporting and complete transparency.
Outsourcing your businesses’ accounting tasks is a great way to increase productivity, reduce costs, and streamline your company’s financial reporting process. Contact us at Fricke & Associates, LLC for more information on how our outsourced accounting services can help grow your company.