As companies take a hard look at their expenses, one area to examine is the accounting function. Many companies benefit from outsourcing their accounting, which can be a cost-effective way to get required expertise and flexibility without hiring a full- or part-time employee.
Business owners outsource their accounting for a number of reasons:
Refocus on your core. One of the biggest benefits of outsourcing accounting is that it allows owners and executives to focus on the core of their business. You can breathe easier knowing that an expert is managing your accounting function.
Increased flexibility. When you outsource, there’s no need to scale your accounting department to accommodate an increase or decrease in business. There’s no wait while a job search is underway and no ramp-up time for hiring new accounting employees. Your outsourced staff is ready when you are.
Expertise. Sophisticated reporting and forecasting may be more than current staffing can provide. However, this type of reliable data is essential for growing businesses. If you outsource, you know you’re getting top-trained talent that’s up to date on the latest tax and other financial regulations.
As for timing, outsourcing can be beneficial throughout a business lifecycle. For example:
Post-start-up. All new businesses eventually need professional financial statements and other documents for funding. Outsourcing makes this level of professionalism an integral part of your finance team.
Employee turnover. If a finance executive is moving on or a trusted bookkeeper is retiring, the timing might be right for an outsourced replacement.
Merger or acquisition. When you’re buying or selling, the increased stress on your internal team may call for outsourced backup services. Contracting with an outside resource—even for a limited time—can provide the assistance you need.
Accounting is not an area to cut corners. Having the outsourced expertise you need can save you time and effort.