Many business owners either dislike their bookkeeping and related accounting tasks, ignore those tasks in favor of more immediate concerns, or both. It’s easy to empathize with them. Many entrepreneurs possess little or no education in bookkeeping or accounting.
“Double-entry what?” You might ask.
Even if you do get accounting software, it’s only nominally better. If you don’t understand accounting essentials, the accounting software itself won’t make much sense. That’s why so many entrepreneurs end up outsourcing accounting services.
Not sure about handing your finances over to a third party? Keep reading for key benefits of accounting services outsourcing.
In many cases, outsourcing to a local accounting firm or use online accounting services, it’s less expensive than the alternatives. Hiring a full-time accountant for your business means an annual salary, benefits, and all the hassles and expenses of actually recruiting them.
What if I’m doing them myself, you might ask. Isn’t that cheaper? Usually, it’s not.
Have you ever figured out what your time is actually worth when you factor in everything you do to drum up business and make deals? There is a good chance that doing your own accounting costs you money.
Let’s You Offload Tricky Tasks
Most accountancy services provide a range of offerings that let you offload tricky or tedious tasks. A few examples include:
- Tax prep services
- Tax filing services
- Accounts payable outsourcing services
- Accounts receivable services
- Payroll services
Did you take your business into e-commerce in response to Covid? E-commerce can add new wrinkles into your accounting that you didn’t face before, such as state sales tax obligations in other states. You may want a service that specializes in e-commerce accounting if you’re new to e-commerce.
Third-party accounting services almost never have just one client, which means they live and die based on the quality of their services. They have a vested interest in keeping your books as accurately as possible. It also means they’re more likely to notice and flag unusual financial activity.
This can help you prevent in-house fraud from taking a bite out of your bottom line.
Even an entrepreneur with a strong background in business accounting won’t know all the ins and outs. They’re likely far too busy keeping their business afloat to stay informed about all the regulatory changes that might affect them. Accountancy services must stay on top of those changes as part of their job.
Outsourcing Accounting Services Simplifies Your Life
The harsh reality is that bookkeeping and accounting are a drain on most business owners’ time and mental energy. Worse, many of those same entrepreneurs lack the knowledge to fully understand or manage those tasks. Even when they do understand them, their time is often better spent elsewhere.
Outsourcing accounting services simplifies your life by freeing you from tasks you may well hate, giving you access to professional expertise, and even offloading tedious tasks.
Looking for more business finance tips? Check out some of the Finance posts over in our Business section.