What exactly does outsourced accounting have to do with business growth, and does it have benefits outside of cost? Aside from organizing a company’s financial data, what other purpose does it serve?
If you’re the head of a small-to-medium enterprise, you might think you’re better off handling your business’s accounting concerns on your own. It’s probably more productive and economical this way, right?
There’s no need to fret over recruitment or spend extra on staffing. Plus, you can supervise where your company’s funds go. The downside, however, is this additional work, which normally goes to a specialist, all goes to someone with other priorities — you.
As a business leader, you can see how committing to extra work — and one that involves your company’s finances, no less — is starting to look like a bad idea. It’s not easy to juggle executive and administrative tasks.
The good news is this doesn’t have to be the case. Available to you are smarter options that will optimize how your business runs. So, what’s this smarter alternative?
It’s partnering with a team of CPAs and accounting specialists. Your collaboration with them will bolster and hasten your business’s growth. And how they do that is what we answer in this post.
How Your Business Benefits from Outsourced Accounting Services
Accountants are known to keep a company’s financial records in tip-top shape. Different sources define accounting as an occupation wherein a professional records, manages, and organizes financial records. But is that all there is to the job? How will that help a company expand?
Contrary to what some people might believe, these tasks are actually vital to, and even determinant of, a company’s success. Without properly managing your business’s funds, you will not have any funds or business to manage eventually.
According to the marketing research group CB Insights, running out of funds is the primary reason why many startups fail. So if you want your business to grow, you have to make sure it has the funds to stay running.
The Different Ways Outsourced Accounting Boosts Business Growth
There’s more to accounting than keeping track of transactions. While this function is certainly essential to your business’s growth, there are other things an accountant can do to boost a company’s growth.
- Giving a company a thorough analysis of its main drivers of income and expenses
- Helping a company decide the best business model for its needs
- Getting a company proactive in managing their finances through critically assessing internal and external trends
- Making sure cash flows are properly managed to keep the business afloat
- Helping in monitoring a company’s KPIs, which will inform decision-making
- Managing the relationship between customers and vendors so both parties arrive at a mutually agreeable decision concerning payments
- Ensuring a company’s financial records are intact and organized for compliance and reporting purposes
But more than these, outsourced accounting also indirectly boosts your company’s performance by giving you a readily available accounting team and the time and space to focus on your core business.
Moreover, it will help your business grow because you gain so much from these services without shelling out. You get an entire accounting team at a significantly discounted rate, especially when you outsource to ideal outsourcing destinations, such as the Philippines.
A Quick Rundown on the Types of Accounting Work Your Business Needs
If the work involved in accounting still feels vague to you, we can break down some of the most crucial tasks of the job. Far from what people commonly presume, accountants go beyond bookkeeping and general accounting work.
They can also process invoices, monitor accounts payable, process payroll, and even prepare financial statements for the company’s stakeholders. In accounting, mental rigor and repetitive documenting go hand in hand.
So, what are the kinds of accounting work a business typically needs? These are:
- Bookkeeping: involves recording the day-to-day transactions of a company
- Tax accounting: ensures a company is compliant with tax laws and standards
- Internal auditing: determines the existence and effectiveness of internal accounting processes and controls as well as whether these controls effectively address the company’s issues or concerns
- Accounts receivable: manages the sending out and collection of a company’s invoices and assists in forecasting the growth of a business
- Accounts payable: manages invoices received from vendors to make sure these invoices are paid on time and monitors discounts and promotions offered
- General accounting: looks into the overall financial health of a business and prepares its financial statements
At NarraSoft, we can perform the following accounting functions for any business:
- General accounting
- Invoice processing
- Accounts payable
- Payroll processing
- Financial planning & business modeling
- Financial statements preparation
If you want to learn more about what we can do for you, don’t hesitate to send a message our way using our contact form on this page.
What Does an Outsourced Accountant Do for a Small Business?
But what if you’re a small business? Will outsourcing accountants make a difference if there aren’t a ton of transactions moving in and out of your company? Managing finances by yourself sounds way more effortless.
However, if you aim to grow and expand your business, partnering with an experienced accounting team is the first step you can take.
Having an outsourced accounting team by your side will offload some of the risks of your business. You gain a partner equally invested in the success of your business and who will give you valuable insights to do better. Your win is theirs as well.
Also, an outsourced accounting partner is suitable for a small business because they’re familiar with their field’s best practices.
Which Is Better for Your Business: In-House or Outsourced Accounting?
Outsourcing is a model that came to be when companies realized some aspects of their business are better off with specialists. The same is the case with accounting.
In a previous blog post, we argued the importance of hiring in-house only if a company is specifically engaged in that activity. To do otherwise could be a waste of time and resources.
If accounting is not your business’s core activity, you might want to consider outsourcing this vital function to a readily available team instead. So what are the signs you need to outsource accounting? Here are a few of them:
- Accounting is not your company’s primary focus.
- Your budget requires an economical solution.
- You want to see your company grow.
If any of these telltale signs apply to you, outsourcing will make sure you’re well on your way to increasing your company’s chances of financial success.
What are the benefits of outsourced accounting, and how does it help your business grow? Accounting is already an intrinsically vital part of any company. So if you have a team of experts running this side of your business, you’re closer to achieving your goal of growth.
Additionally, outsourced accountants will give you the following:
- A thorough analysis of your company’s main drivers of income and expenses
- An analysis of the best business model for your needs
- A proactive way to manage your finances
- Effectively managed cash flows
- Properly monitored KPIs
- A mutually beneficial system for rendering payments
- Well-organized financial records for compliance and reporting purposes
Are you looking for professional CPAs and accountants at an affordable price? At NarraSoft, we treat your business as though it were ours, so we ensure its financial health is constantly in good shape.
Partner with our accountants today to accelerate your business growth!
Send us an email at email@example.com or send us a message on our chat box or contact form.