The Benefits of Outsourced Accounting
The Benefits of Outsourced Accounting
As a business owner, you can likely list off a number of core competencies that set your business apart from others. These core competencies give purpose to your business and are the driving force behind its success—on top of making your work exciting and fulfilling. With your focus centered on how to grow and improve your business, other key functions—such as accounting—may be pushed to the bottom of your list of priorities. It goes without saying, however, that your time can be better spent building your core business rather than overseeing the day-to-day accounting.
Regardless, your finances cannot be ignored, as timely accounting is crucial to the success of your business. Keeping up with your accounting can be even more difficult if your business grows in revenue, hires additional employees, outgrows its systems, or begins to require more sophisticated reporting. In these cases, outsourcing your accounting is the ideal solution for the following reasons:
Outsourced Accounting Frees Up Productive Time
Your business’ core competencies are unique competitive advantages that allow you to thrive. Any time and resources spent not working on cultivating these competencies reduces your business’ efficiency and capacity to grow. By outsourcing your accounting, you free up a significant portion of the work week that can be dedicated to strategically improving your business.
Outsourced Accounting Provides Access to Experts
By allowing accounting experts to generate reports and statements, you can have full financial visibility into your operations. A skilled outsourced accounting team can provide insight that far exceeds what basic bookkeeping can do for your business. Financial visibility and in-depth insight gives you the confidence to make the best decisions for your organization, such as how to profitably price your services, which areas to invest in, and what hiring moves you can make.
Outsourced Accounting Removes the Need for Additional Hires
Utilizing outsourced accounting support reduces the need to hire a robust team. Hiring can be expensive when considering the time and resources it requires. In addition to salary and benefits, new hires must be recruited, undergo onboarding training, and endure a ramp-up period. Outsourced support, especially when fractional, entails paying only for the time you need.
On top of that, outsourcing your accounting team means that you have one less department to manage. More specifically, your executive team can shift its focus to departments that are generating revenue, and not worry about back-end accounting.
Place Your Focus on Reliance
Often, basic accounting is compliance-focused, meaning the goal is to ensure processes are executed correctly and in accordance with legal requirements. The same is true when you file taxes or undergo an audit. Compliance is essential, but if that’s the only focus of your accounting, you may be missing out on important visibility into your organization.
Accounting that is reliance-focused provides data that can be used to make business decisions. Through outsourced support, you can expand the reach of the organization’s accounting functions. Reliance-based accounting provides insight into every department of your business, allowing you to strategically position yourself for growth.
Outsourced Accounting Gives Access to a Larger Talent Pool
When you decide to hire a new employee, you may only have access to a local talent pool. This could lead you to compromise on the candidate you ultimately hire. Or, you may not fully know the type of accounting role would best suit your business.
By outsourcing, you benefit first from expanding your talent pool. Rather than searching for an ideal candidate, you gain access to a team of qualified professionals. Additionally, an experienced outsourced accounting firm can offer an initial consultation to evaluate your business’ accounting needs. This way, the appropriate accounting role can step into your organization and offer expert support. You also avoid overpaying for a high-level accountant that is not suitable for your business.
The NOW CFO Difference
NOW CFO is a full-service, outsourced accounting firm that offers tailored financial support to a wide variety of businesses. With offices from coast to coast, and our breadth of industry experience, our expert consultants can provide the financial visibility your business needs to thrive—giving you time to work on your business rather than in it.