Outsourced Accounting Should you consider it

1. Outsourced Accounting: Should you consider it? medium.com/@pasfirm11/onloutsourced-accounting-should-you-consider-it-4de32f371a63 · Wandering whether outsourced accounting is suitable for your business? Let’s find out. As a small business owner, you know better about the day-to-day challenges you face when dealing with your company’s financials. Undoubtedly, handling the numbers is a time- consuming time, and that’s the reason why many small businesses are opting to outsource their bookkeeping needs recently. Owing to the several benefits it offers, the businesses that operate remotely are also rapidly switching to outsourced accounting. In this guide, we will explain outsourced accounting and the benefits it offers. Apart from this, we will also present the points on which you should evaluate the outsourcing firm. 1/3

2. What is outsourced accounting? Outsourced accounting is an accounting type when business owners hire a third-party accounting firm to handle all the financials and accounting needs of businesses. The outsourced firm is capable of handling bookkeeping, payroll, financial reports, management accounting, tax, accounts payable, accounts receivable, and more. Further, they also follow up with the debtors and provide other accounts-related services as well. Unlike bookkeeping, which only needs you to record business transactions, accounting involves several related services such as: Analyzing financial statements along with the operations Recording all the expenses which were not recorded by the bookkeeper ( Also known as adjusting entries) Filing income tax returns and planning for taxes Calculating the financial impact of business decisions Analyzing the cash flow Evaluating the financial health and the prospective profitability of your business Now that you know what you can refer to as outsourced accounting, let’s take a look at the benefits it will offer. Should you outsource your accounting services? To find an answer to this question, you need to look at the benefits that accounting services have to offer you. They are as follows: Time-Saving: One of the most obvious benefits that outsourced accounting offers is that saves your precious time. You can use this time to fulfill your other responsibilities and focus on making important business-related decisions that can help you generate more income. Increase savings: Outsourced accounting is widely accepted as the most cost-effective mode of accounting, and obviously, it costs you way less than hiring an experienced in- house accounting professional. Apart from the hefty salary you need to pay the employee, you don’t need to purchase office supplies, pay taxes, provide employee benefits, and invest in accounting software. Scalability: The accounting needs to keep changing as it grows and generates more profit. It will not be possible to handle the accounting needs of a growing company single- handedly. So you need to set up an accounting department which might not be feasible for you. In such a situation, outsourcing the financial needs of your business is the best bed. Eliminate errors: if you are not a pro and stumble on your way to manage the accounts, you are bound to commit blunders when reporting the financials. So, there is a good chance that you overpay the taxes or underpay them. In the latter case, you will have to pay the penalty to IRS. So, a decision to outsource your accounting needs will save you from such mistakes, and you can also seek financial advice from the experts if the need arises. So, it’s clear that outsourced accounting offers a slew of advantages. Moving further, let’s see if you should consider outsourced accounting for your business or not. Also Read: What is Virtual Bookkeeping 2/3

3. Should you outsource or not? To find an answer to this question, you need to evaluate your need against some important factors. Let’s take a look at them. Budget: Outsourced accounting is the best bet for companies having a tight budget since it offers an affordable solution. However, the cost of outsourcing accounting depends on the provider. There can be varied payment terms including the payment cycle- some charge on an hourly basis while others monthly. So, reach out to an experienced outsourcing firm and discuss the budget with them. Moreover, you need to put forward your expectations and what tasks you need them to handle. Security: Talk about the security measures and tools that the outsourcing firm will use to protect your sensitive financial data. Of course, you do not want an unauthorized person to access the cash flow, balance sheets, financial statements, and other details. Future accounting needs: Do you just need the basic accounting services, or are looking forward to a more comprehensive financial service? Ask yourself the question and discuss it with the right outsourcing company you intend to hire. Professional Accounting Solutions, Inc offers timely and cost-effective accounting services including bookkeeping, catch-up bookkeeping, accounting, payroll, tax, and QuickBooks consulting from their Miami and Fort Lauderdale offices. Get free 1-Month online bookkeeping services from Professional Accounting Solutions, Inc., one of the best-reputed accounting firms in Miami, USA. 3/3