As a business owner or an executive director of a non-profit organization, you are always looking for ways to make work processes more efficient and cost-effective while not compromising the things that are important. Many functions of a business or organization can, and already are, outsourced, such as payroll and human resources. What a lot of business owners or executive directors don’t consider is outsourcing their accounting functions.
Access to Accounting Professionals
One of the many reasons to outsource your accounting is it always allows you access to accounting professionals, as well as new software and technology. Outsourced accountants must stay up to date on different software and the continuously changing rules and regulations. You can always count on them to know the latest and greatest and be able to guide you towards what works best for your entity, whether you are a sole proprietor, non-profit or even a large corporation. They have extensive experience in multiple facets and can bring different ideas to the table that will best fit your entity and its vision.
Improve Internal Controls
Having a third party perform your accounting function can help improve your internal controls and help you enhance your policies and procedures. Unfortunately, employee fraud has, and always will be, an enormous issue in today’s world. An outsourced accounting professional knows all the red flags and can help make an unbiased identification of any potential fraud. They can also identify any weaknesses in your current financial reporting and make suggestions and modifications to better organize the presentation of your financial statements. They have a vast understanding of different policies and procedures in an array of industries and can help modify or create a policy that best fits your entity.
Save Time and Money
They always say, “time is money,” and outsourcing your accounting function can save you just that—time and money! When you have accounting professionals taking care of your financials, it allows you to focus on what you do best, running and growing your business or non-profit organization. Not all business owners have strong accounting skills; therefore, outsourcing your accounting can give you the peace of mind you need to continue the success of the business each day. Removing an in-house accountant also eliminates the overhead cost of an employee in this position, such as benefits, employer taxes and unemployment.
An inevitable thing that can occur within a small business or non-profit organization is turnover, especially in today’s environment. In a small entity, there are usually employees who take on multiple functions, and this can be particularly stressful on management and other staff when they are sick, take vacation or even put in their notice. If they leave, you are spending time and money to hire new employees and train them to perform the position. If you outsource your accounting function, you don’t have the stress of wondering who’s going to cover that essential employee if they are gone from the office or having to replace them with extensive training.
Outsourced accounting can offer the flexibility that an in-house financial person cannot. Many entities are forced to change and adapt to the times, and this can cost the entity money to get employees trained and up to date. When you work with an outsourced accounting group, you can easily adjust and add new services without the stress and cost of getting an employee ready for the task. A good quality outsourced accountant is one of the best investments you can make for your business or non-profit organization and its future success. They can provide invaluable advice and guidance to help grow and protect your entity and will be there to support you every step of the way.
Accounting is a crucial component of business, and many business owners today are transitioning to outsourced accounting services as an alternative to an in-house accounting department. It is a viable, efficient and cost-effective solution, which helps you stay compliant, competitive and on the path toward growth. This is one of the best investments you can make for your business, no matter what sized business you have.
If you want to learn more about how outsourced accounting could benefit your company, contact Peggy J. Rowe, CPA, CFE, CBA, audit partner at Dannible & McKee, LLP at 315-472-9127. Visit dmcpas.com to learn more.