If you own a startup, chances are you’re jumping over various new business hurdles left and right. Starting a business is hard work, but scaling a business is a whole new obstacle! As you add members to the team, you’ll have to handle payroll, taxes, monthly reporting, and financial advising. That’s a lot to handle… thankfully, there’s a solution to that.
Hiring outsourced accounting services will take care of all those tasks for you, allowing you to solely focus on managing your startup!
If you’re considering hiring an outsourced accounting department, keep reading to learn some of the many reasons why outsourcing your accounting team is the best thing you can do for your startup business.
1. Experienced, Expert Accounting Services
Managing your own startup will require you to be a jack of all trades, but accounting shouldn’t be one of them. You can find everything you need to understand the basics of accounting from Afirmo’s guide to small business accounting, but for most startups, it’s better to leave accounting in the hands of the experts. Thankfully, an outsourced accounting department is zeroed in all things related to payroll, taxes, financial reporting, and budgeting.
They are the top experts in the industry and will handle all the various areas of accounting so that you don’t have to. Rest assured knowing you don’t have to master all there is to know about taxes and payroll.
2. Cost Effectiveness
Hiring an in-house accounting department is expensive. Excluding the cost of labor necessary to fill each position, you will have to pay for another salary, set of benefits, bonuses/raises, and IT equipment. Multiply that cost per each employee and you have yourself quite the expense. Meanwhile, hiring an outsourced accounting team changes the game.
Average outsourcing costs vary anywhere from $500 to $5000, depending on the services you are looking for, and you’ll only have to pay for the services you need. This allows you to focus your funding on scaling your business, improving your services, and bringing on new clients.
3. Credible Documentation for Investors
As a business owner, you’ll constantly have to learn new things about managing your company. Don’t make organizing and preparing financial statements one of them. Leave this to the professionals!
When you have experienced accountants handling all financial information, you will have neat, clearly organized documentation to present to potential investors. You want to show them that you are on top of it, and maintaining easy-to-read documentation is just the way to do it.
4. Avoid Turn-Over and Time-Off
While hiring in-house accountants has its benefits, remember that these are employees that are entitled to time off and sick days. This may delay any accounting tasks that need to be completed, especially if your accounting team relies on each other to get them done.
Additionally, if your in-house accountants terminates their employment or is terminated, this will effectively cost you more money to hire and train a new employee. You won’t have to deal with these risks if you hire a virtual accounting team. You will always have a trained accountant on standby, ready to work on your account whenever needed.
5. Save Time
Being a business owner, you’re bound to be extremely busy. If you hire an outsourced accounting department, you’ll be in the hands of trained professionals who are dedicated to working on your account. You won’t have to worry about managing any accounting, reporting, or financial advising on your own, consequently, freeing up your time to focus on growing and managing your startup instead!
6. Easy to Scale
One of the best perks to outsourcing your accounting is how much easier it is to scale your business. Startup culture is fast-paced and with new members joining your team, you’ll have to make sure they are being accounted for. Thankfully, adding another accountant to your outsourced team is quick and convenient. Whenever you are ready to add another team member internally, all you have to do is let your outsourced accounting team know!
7. Automated Technology & Access to Latest Technology
Keeping up to speed with all the new accounting software and technology can be costly. Between purchase costs and training your in-house accountants how to use it, you’ll be paying a pretty penny to maintain all the accounting technology your business needs.
By outsourcing, you won’t have to worry about purchasing that expensive software. Your outsourced team of professionals are all fully trained on the latest technology and software they need to provide top-notch accounting services to you and your team.
8. Reduced Risk of Fraud
With outsourced accounting, you have trained professionals handling all your important tax, finance, and payroll information. With this clear division between your employees and your accounting team, you’ll effectively reduce the risk of your employees tampering with checks, reporting false numbers, or inflating hours while doing payroll. An outsourced accounting team will provide unbiased service with no motivation to alter your numbers.
9. You Stop Services at Any Time
If you decide to switch to an in-house accounting department, know that you can stop your outsourced accounting services at any time. Hiring outsourced accountants is flexible, allowing you to stop or resume services as you see fit. This is convenient if you need to allocate your funding to different areas of your business.
10. Securely Stored Documents
Reptuable outsourced accounting companies will have the most secure storage for all of your account’s important documents and information. When you’re starting a business, you may not even consider internet security…
Keep you, your employees, and your business safe from hackers by securely storing vital information with an outsourced accounting team. Additionally, hiring virtual accountants effectively eliminates the risk of losing any important financial documents during an office break-in.
As a new business owner, you should be able to focus on making your company successful and profitable. By outsourcing your accounting, you can do just that. Free up your time and energy by hiring an outsourced team of virtual accountants to handle all that confusing tax information, payroll, and other financial information. Keep all your startup’s accounting organized, accurate, and secure withan outsourced accounting team.