As a business owner or executive director of a nonprofit organization, you’re always looking for ways to make work processes more efficient and profitable without compromising the things that matter. Many functions of a business or organization can be outsourced, and already are, such as payroll and human resources. What many business owners or executive directors do not consider is outsourcing their accounting functions.
Access to accounting professionals
One of the many reasons to outsource your accounting is that it always gives you access to accounting professionals, as well as new software and technology. Outsourced accountants need to keep up to date with different software and ever-changing rules and regulations. You can always count on them to know the latest news and be able to guide you towards what is best for your entity, whether you are a sole proprietor, a non-profit organization or even a large company. They have extensive experience in multiple facets and can bring different ideas to the table that will best suit your entity and its vision.
Improve internal controls
Having a third party perform your accounting function can help improve your internal controls and help improve your policies and procedures. Unfortunately, employee fraud has, and always will be, a huge problem in today’s world. An outsourced accounting professional knows all the red flags and can help impartially identify any potential fraud. They can also identify any weaknesses in your current financial reporting and make suggestions and changes to better organize the presentation of your financial statements. They have a broad understanding of different policies and procedures across a range of industries and can help modify or create a policy that best suits your entity.
Save time and money
It is always said that “time is money” and outsourcing your accounting function can save you time and money! When accounting professionals take care of your finances, it allows you to focus on what you do best, managing 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 pursue business success every day. Removing an in-house accountant also eliminates the overhead of an employee in that position, such as benefits, employer taxes, and unemployment.
One inevitable thing that can happen 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 roles, which can be especially stressful for management and other staff when they are sick, taking vacations, or even furloughed. If they leave, you spend time and money hiring new employees and training them to fill the position. If you outsource your accounting function, you don’t have the stress of figuring out who’s going to cover that essential employee if they’re out of the office or need to replace them with extensive training.
Outsourced bookkeeping can provide flexibility that an in-house financial person cannot. Many entities are forced to change and adapt to the times, which can cost the entity money to train and update employees. When working with an outsourced accounting group, you can easily adjust and add new services without the stress and expense of grooming an employee for the job. 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 you grow and protect your entity and will be there to support you every step of the way.
Bookkeeping is a crucial part of business and many business owners today are opting for outsourced bookkeeping services as an alternative to an in-house bookkeeping service. It’s a viable, efficient, and cost-effective solution that helps you stay compliant, competitive, and on the path to growth. It’s one of the best investments you can make for your business, regardless of the size of your business.
If you would like to learn more about the benefits of outsourced accounting for your business, contact Peggy J. Rowe, CPA, CFE, CBA, Auditing Partner at Dannible & McKee, LLP at 315-472-9127. Visit dmcpas.com to learn more.