All businesses are looking for new ways to cut costs and increase their profit margin. Bookkeeping for small business especially can be a costly affair. Ever thought of outsourcing your bookkeeping service? Let’s take a look at why you should outsource your bookkeeping service.
Leverage your Time
Outsourcing your business’s bookkeeping operations frees up valuable time that can used towards focusing on your core area of expertise. Backend office functions can be a heavy distraction from the day-to-day running of operations and having your bookkeeping in-house can lead to a conflict of interests.
It will Save your Money
Bookkeeping for small business can become a financial burden. By outsourcing your bookkeeping operations, you save money on paying full-time or part-time wages and benefits to an employee. Further, you also save on lost productivity costs that come along with hiring employees onto the payroll. By outsourcing your bookkeeping, you only pay for what you need.The cost benefit analysis of outsourced accounting vs. in-house bookkeeping can save up to 40% in monthly costs.
Reduced Fraud with Improved Access to Top Systems
According to a study by the Association of Certified Fraud Examiner, the most common victims of fraud are privately owned small businesses with less than 100 employees, with an astounding median fraud amount of $147,000. This is because most small companies don’t have access to a controller or CFO who could look monitor the KPI and metrics and detect abnormal activity in the transactional and billing data. Accounting controls and external audits are responsible for 26% of the cases in the study for detecting or preventing fraud. With Outsourced accounting, small businesses can afford a CFO/controller who can look for fraud signs and implement proper fraud protection controls.
It will Raise your Accounting Standards
By outsourcing your accounting operations to a professional accounting firm, you’re effectively hiring a team of experts. Professional accountants know the tax codes and laws and will give you the accounting assistance and bookkeeping advice they are trained for. They work around the clock for your business by keeping up with the latest tax information, affording you full-time coverage for only part-time pay. Staffing options are considered and executed per task, so you will only have the most experienced and qualified individuals on your side.
Collaborative Accounting will Increase Productivity
Outsourcing your accounting operations affords you a team of people, all double-checking each other to ensure that all the right findings are being found. This also means that you can have specialized departments. With just one in-house accountant, it’s hard to hold departmental purchasing and spending individually accountable. This creates cracks for services to fall through. With a team of accountants, the manpower is right for separating all of the departments and really getting down to the nitty-gritty of each sector.
Finally, outsourcing your bookkeeping allows you to expand or cutback in the blink of an eye.Accounting firms can provide you with lists of options, giving you valuable feedback and suggestions that will raise your profits and help you achieve your goals. Outsourcing provides flexibility that in-house bookkeepers lack.
In addition to the benefits listed above, hiring a professional trained in giving bookkeeping advice and accounting assistance for small businesses can further optimize your performance. Get in touch with ATS Accounting, and equip yourself with specialized bookkeeping services.