Outsourcing your accounting function and just outsourcing, in general, has become really popular over the past couple of years, whether that be outsourcing your HR, or your legal department.
It might be a really good option for small to medium-sized businesses that don’t really have the funds or the need to hire someone full-time in-house, but they can get a lot of the same expertise by outsourcing it to a company that can provide that role for them.
Accounting is no different from any of the other ones.
So, let’s dive into five reasons you should look to do this for your accounting department.
Possible money savings
The first one is the big one. It’s all about money. Hiring a controller or a CFO-level person for your business is really expensive, and it’s not just the salary cost.
There are benefits; there’s training if they have any downtime. You know you’re paying for that. When you outsource it, you eliminate many of these, and you’re basically just paying for what you need.
So the idea behind outsourcing is to get the service at the level that you need, get the expertise you need, but at a fraction of the cost.
Possible time savings and avoidance of turnover
Bringing someone new in catching them up to speed, training them, and going through everything so that they understand your business is time-consuming. And, if you hire somebody in-house, there’s always the risk of them leaving or something happening and then having to do that deal with turnover.
If you outsource the function, the company should be there with you, no matter what happens. If an employee leaves or someone else steps up and takes their place, you should have a partner at the accounting firm you’re working with who’s your touch-point contact.
So that, if anything does happen, they always know what’s going on, and they’re able to step in and handle things.
And that way, there’s just continuity with your accounting function, which is really important.
It’s important to avoid that turnover and the headaches that come with it.
Outsourced accounting providers will have more skin in the game
Look, if you build the relationships right, an outsourced company typically we’ll have a little more skin in the game.
Their success is hinged on your success because they can grow with you.
On the other hand, if you have an employee, they don’t have a lot of skin in the game. They’re just coming in, doing their work, doing their nine-to-five and heading home.
And anytime you have somebody with skin in the game and a little more to lose, there’s more incentive.
Typically, you’ll find that they’re going to do a better job for you, they’re going to work harder for you, they’re going to have your back more, especially from the financial side of your business.
Access to support
When you have an outsourced accounting company that’s handling specifically your business’s accounting function, you should have access to support 24/7.
If you hire one employee in-house, if they’re not there, if they get sick or go on vacation, you don’t have any support for the time they’re going. So this is a huge disadvantage when hiring in-house.
So if you need that constant support, somebody always being there to help you – outsourcing your accounting function might be the way to go.
If you hire in-house, you will get somebody with limited experience. They may have worked maybe at a couple of different companies and will be able to bring this expertise to you. It could be a really good experience.
But if you work with an outsourced company, they’ve worked with businesses all across the board, different industries, different sizes, and they can bring a lot of those things from the different companies into your company to help you grow. They’ve seen a lot more, and typically they’ve done a lot more, so that experience is something that can really propel growth in your business.
Obviously, outsourced accounting is a topic we’re really passionate about.
You may consider outsourcing the accounting function in your business as many advantages come with doing something like this.
We hope this article was helpful. Should you need assistance with your accounting, please don’t hesitate to contact us.