By: Katie Johns
Small business owners, though expert in their domain, are often plagued with a major challenge – lack of financial or accounting experience. It is expensive and time consuming to hire in-house financial and accounting professionals, and you will need to monitor their work and deliverables. One of the most viable option for small business owners is to outsource their bookkeeping and accounting services to reliable and experienced automated bookkeeping and accounting firm. You might, however, ask if it’s worth outsourcing booking and accounting services to an external firm.
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1. It is resource intensive to maintain an in-house accounting and financial professionals
When you hire in-house accountants and bookkeepers, you will search for the right candidate with a strong track record in accounting and bookkeeping experience with the right qualification. If you don’t invest in finding the right candidate, you will compromise on the quality of month-end financial reporting and processing of accounts.
Additionally, you must ensure that the in-house financial experts are updated with changes in financial rules and accounting principles. Outsourced booking and accounting services will ensure that you get high-quality and expertise who are constantly trained and updated with financial trends and accounting principles. One of the surest ways that you know that you’re working with the right offshore bookkeeping experts is to test their knowledge of the current financial trends.
2. Need for solid internal controls
When you just have a few in-house people taking care of your financial reporting and accounts, the risk of fraud or omissions is high. Typically, in small businesses, the accounting professionals are shouldered with multiple responsibilities, therefore, the chances of erroneous financial reporting are high.
The outsourced booking and accounting firm has industry’s best financial professionals to carefully review financial statements for your business. With the help of solid technology platforms, they meticulously review the discrepancies and carefully review financial reports for errors. With an outsourced bookkeeping and accounting service provider, the internal controls are solid to ensure that the flow of information in the accounting system is seamless and accurate. It also ensures that the checks are not omitted while the financial risks are minimal.
3. Compromised Financial Reporting
Accuracy of financial reports is critical for business owners as it gives them a clear picture of the cash flow to help make business-critical decisions. Internal-financial and accounting professionals may cause delayed financial reports that are not carefully reviewed or assessed for inaccuracies due to paucity of time.
Outsourcing bookkeeping and accounting tasks can ensure accurate, timely and insightful financial reports that are critical for you to plan the course of your business actions.
4. Challenge of employing financial professionals with multiple skills
Bookkeepers usually record sales, expenses and bank transactions for your business. You need bookkeeping professionals to have data entry, analytical and great communication skills. While the accounting professional is responsible for summarizing financial data in a way that is most effective for your business. They must understand different forms of tax and its implication on the business. Accountants need to be CPAs or Certified Public Accountants with the ability to understand the financial health of the organization.
It can be challenging to employ multiple resources to perform different financial functions. Using the services of an experienced and reputable bookkeeping and accounting firm can alleviate your challenges of hiring multiple professionals.
5. In-house team can’t keep up with the changes in the financial world
You’re already challenged to follow the latest trends in your own industry that it’s almost impossible to keep a watch on the changes in accounting and bookkeeping changes. How can you ensure that your financial experts are updated with the best practices in the financial world?
With outsourced accounting and bookkeeping firm, you can be assured that you work with seasoned professionals who are constantly on the top of the changes in the financial world and accounting best practices.
If you need help with automated accounting and bookkeeping services, you can speak to one of our financial experts to understand how we can help you and contribute to your business growth.