Having a good idea is one thing, and turning into a successful business is another. As a small business owner, you may have taken a few accounting courses throughout your education and are familiar with balancing the books, but most entrepreneurs don’t have the expertise to run the entire accounting function of their startup or small business. Many small business owners are turning to outsourced accounting services for many good reasons.
With the advancement of cloud technology, your small business can quickly access up-to-date accounting information about your company. Outsourced accounting services in Gilbert help your business run better, grow faster, and make more money. Often at significant cost savings vs. building an internal accounting department.
Still not convinced outsourced accounting services would be a great fit for your small business? We have highlighted additional key reasons small businesses and startups are leaving their books to professional accountants below.
Hiring an outsourced accounting service is often cheaper and more cost-effective than hiring in-house staff to handle the finance function. By outsourcing, you don’t have any attributed overhead costs that hiring an employee would generate, such as PTO, health insurance, retirement, vacation, Workers’ Comp, and sick days. Also, the value of having an entire team’s expertise, rather than just one internal person (or more), includes reducing the risk of non-compliance and unreliable financials – especially for smaller businesses starting out.
As we mentioned above, outsourced accounting services are often cheaper and more cost-effective than hiring in-house accounting employees. Your small business can cut overhead costs associated with hiring an employee such as PTO, health insurance, retirement, vacation, payroll taxes, and sick days. Additionally, when you use outsourced accounting services in Gilbert, you take away the need to train any staff.
Outsourced accounting providers are experts in accounting and usually actually enjoy it. By hiring a certified professional rather than just one internal person, you reduce the risk of noncompliance and unreliable financials- which can be especially detrimental for smaller businesses start out.
#2. Better Use of Time
Running a small business is hard work! Small business owners are often pulled in one million different directions all at one time. By freeing the accounting function, entrepreneurs have time to spend on other parts of the business. Pouring over the books on back-end office operations can be a huge hassle that takes away precious company time. Time can be spent working on other important operations such as marketing and sales to bring in new customers, or managing relationships with current customers. Outsourced accounting services are an excellent way for entrepreneurs and small business owners to better manage their demanding schedules.
#3. Understand Ghost Assets
Do you understand the tremendous impact ghost assets can have on your business? Not accurately finding and eliminating ghost assets can really kill your bottom line. If you don’t know what a ghost asset is, you’re not alone. In fact, 49 percent of small business owners or managers admit they had no idea what a ghost asset is.
A “ghost” asset is a fixed asset on a general ledger that cannot be accounted for because it is not physically present or has been rendered unusable. Essentially, they threaten the two things you never want in the finance world: lost money and risk. The good news is that outsourced accounting services can ensure that these ghost assets are not haunting your books by accurately tracking assets, forecasting large expenses, and accurately depreciating assets on the balance sheet.
#4. Having a Proactive Accountant on Your Side
Since most entrepreneurs aren’t familiar with accounting, they don’t have the ability to spot red flags throughout their financial statements. This is an essential skill, and missing a red flag could even be the demise of your business. This is why having an outsourced accounting team has the advantage of proactivity, where they can spot red flags ahead of time and notify you about expenditures and cash flow or struggling accounts receivables, for example. Having trained eyes on your finances at all times can bring considerable peace of mind, as well as the confidence needed to make intelligent financial decisions. Making better business decisions could be the key to successful growth, and having a proactive accountant on your side can make a huge difference.
#5. Manage Risks
Potential business risks such as high state and local taxes or unexpected tax penalties and interest payments can be identified in order to help develop models and budgets to run the business more efficiently and manage it to profitability. Using outsourced accounting services year-round will also make tax season significantly easier, and most outsourced accounting services can even provide tax services as well.
#6. Access To The Best Technology
You need a program that helps you accomplish your daily accounting tasks – recording payments, tracking expenses, invoicing customers and reconciling transactions – and gives you insight into your business’s financial health, allowing you to generate reports that help you analyze your business’s performance from multiple angles. Choosing the best invoicing and expense reporting software can be challenging. The good news is that an accounting firm is in a perfect position to suggest the best available and proven accounting technologies for your business.
Small businesses are turning to outsourced accounting services in Gilbert for enhanced efficiency, better financial data, to reduce costs, and to manage risks. Having a proactive accountant on your side can help you quickly catch red flags and correct them before it can kill your bottom line. With advancements in cloud technology, your small business or startup will have access to real-time data with the click of a button no matter your location.
Limitless Investment and Capital’s Outsourced Accounting Services in Gilbert
At Limitless Investment and Capital, we strongly believe that sound financial management is the key to business success. Business owners need accurate, up-to-date financials to make great business decisions, and our team of CPAs in Gilbert can provide just this. In fact, our team would love to grow with yours! We aren’t just looking to be your accountant, but love to create a long-lasting partnership with our clients. Contact us today to learn more about our outsourced accounting services in Gilbert!