Need Help with In-House Accounting for Your Business? Consider These 8 Benefits of Outsourced Accounting
Managing a business is no small feat. It takes dedication, perseverance, and the ability to wear many hats. But for many business owners, managing their day-to-day operations, fulfilling orders, leading a team, and ensuring customer satisfaction can be too much to juggle. And to make matters worse, it’s estimated that 82% of small businesses fail due to cash flow problems.
When money gets tight, managing payroll, bills, and other financial obligations can get overwhelming, to say the least. In this article, we’ll share perspectives on the challenges that technology businesses face in handling their accounting internally and how outsourcing these services can provide significant benefits.
The Challenges of In-House Accounting
Some business owners love managing the books—pouring over profit and loss statements and general ledgers, keeping track of every penny coming in and out of the business. However, that’s not always an option for some businesses. Imagine a typical day for a business owner—they start early, often at the crack of dawn, ensuring operations run smoothly, fulfilling customer orders, managing a team, and handling customer service issues. Managing client needs and technical support can be equally demanding for a SaaS provider, IT company, or e-learning business. Among it all, finding time to sit down and manage finances can be nearly impossible.
Managing your finances and accounting internally requires a lot of time and resources, often coming early in the morning or at the end of a long day—practices that can wreak havoc on your family life and maintaining a healthy work-life balance.
Bookkeeping involves complex and often time-consuming tasks such as tracking expenses, managing payroll, filing taxes, and ensuring compliance with ever-changing regulations. These tasks demand specialized knowledge and attention to detail. Mistakes can easily occur without proper expertise, leading to financial mismanagement and penalties.
These accounting challenges can distract business owners from focusing on their core activities—those that drive growth and revenue. Instead of strategizing on expanding the business or improving customer experience, they find themselves buried in financial paperwork.
This is where outsourcing accounting services for businesses comes in. Business owners can delegate these complex tasks to professionals by turning to finance and accounting outsource services, freeing up valuable time to focus on what they do best—running and growing their business.
Benefits of Outsourced Accounting Services
If you’re like many business owners who have tried to do it all on your own, being everything to anybody and everybody, you may have never considered that when it comes to the accounting of your business—you don’t have to do it on your own. And if your business is located in or near Vancouver, B.C., you’re in luck. Argento CPA provides just the right outsourced accounting services to help your business scale and grow.
Consider the following benefits of leaving your financial services and accounting work to the professionals.
- Cost Savings
Outsourcing your bookkeeping can significantly reduce the costs associated with hiring and training in-house staff. You can also save on benefits, office space, and the technology required for accounting tasks. These savings can be substantial, allowing you to allocate resources more effectively to other business areas, ultimately improving your bottom line. For technology companies, these savings can be redirected towards R&D or marketing. All in all, you may save 30% and 75% of your current bookkeeping costs.
2. Access to Expertise
Outsourcing provides access to a team of experienced professionals with specialized knowledge. These experts stay updated with the latest accounting regulations and standards, ensuring your business remains compliant and efficient. Their expertise allows you to benefit from best practices and informed advice, which might be beyond the reach of an in-house team.
And, let’s laser in on that keyword—team. When you leave your accounting needs to the professionals at Argento CPA, you benefit from a team, not just one person and their sole expertise.
3. Improved Efficiency
Outsourcing simplifies your accounting processes, making them more efficient overall. With automation and professional expertise, payroll and invoicing are completed more quickly and accurately. This efficiency reduces the risk of errors and frees up time, allowing you to focus on other important aspects of your business. You can have real-time financial insights, a must for fast-paced tech industries, and you can be as up-to-date as you want, never worrying about being in the dark.
4. Scalability
Outsourced services can easily scale with the growth of your business. Whether you need more extensive accounting support during busy seasons or less during quieter times, outsourcing offers the flexibility to adjust services based on your specific needs. This adaptability makes sure you always have the right level of support—whenever you need it.
5. Focus on Core Business Activities
By outsourcing your business accounting tasks, you can free up valuable time to focus on strategic initiatives and growth. For example, instead of spending hours on bookkeeping, you can develop new products, improve customer service, or expand your market reach. And let’s face it—while 82% of businesses fail due to cash flow issues, many companies also fail because they stop innovating.
Think of those household names of the past—Eastman Kodak, Blockbuster, Borders Group, etc.—you guessed it, these businesses had to shutter their doors because they did not think ahead and stay on top of customer needs. Businesses that redirect resources to core functions, including innovation, often see positive results and greater success.
6. Compliance
Staying compliant with financial regulations is a must to avoid costly mistakes and penalties. Professional accounting services help your financial activities adhere to regulations. This expertise minimizes non-compliance risk and provides peace of mind, knowing your business meets all legal requirements.
7. Access to Advanced Technology
Outsourcing allows you to leverage the latest accounting software and tools without the need for significant investment. These advanced technologies improve accuracy and provide better financial insights, helping you make informed decisions. This is particularly valuable for technology companies that rely on precise data for strategic planning. With top-tier software, your accounting processes become more reliable and effective.
8. Reliable Financial Reporting
Outsourcing guarantees accurate and timely financial reporting, which is non-negotiable for making informed business decisions. Reliable data lets you understand your financial position clearly, identify trends and plan for the future. With professional accounting services, you can trust that your financial reports are precise and delivered when needed.
Don’t Risk Business Failure Due to Poor (or Expensive) In-House Accounting Practices
Deciding to outsource your bookkeeping is not a sign of failure. For most businesses, it is a sign of growth and the understanding that it needs more from you than you can currently give.
That’s why working with a Chartered Professional Accountant (CPA) offers immense value to any-sized business. CPAs bring advanced expertise, credibility, and a commitment to accuracy, which are must-haves for effective financial management. The benefits of outsourcing accounting services—cost savings, access to expertise, improved efficiency, scalability, focus on core activities, compliance, advanced technology, and reliable financial reporting—collectively contribute to business success. These advantages allow you to focus on what you do best while ensuring your financial operations are in expert hands.
If you’re ready to take your business to the next level, consider partnering with Argento CPA. Our team of professionals is dedicated to helping businesses like yours scale and grow. Book a free strategy call with Argento CPA today for a consultation or more information on how our outsourced accounting services can benefit your business.
