8 Key Benefits of Outsourcing Accounting

When I stumbled upon Sarah’s story on the BELAY blog, it immediately resonated with me. Sarah, the dedicated owner of a local bakery, found herself overwhelmed by the financial complexities that came with her bakery’s rapid growth. Managing her own books was not only time-consuming but also left room for potentially costly errors. After partnering with an outsourced accounting firm, she experienced a remarkable transformation. Her financial management became streamlined, cost-effective, and allowed her to focus on expanding her business and perfecting her recipes. You can read more about Sarah’s journey here. What struck me about Sarah’s story was how relatable her challenges were and how effectively outsourcing helped her navigate through them.

Outsourcing your small business accounting can be a game-changer. Just like Sarah, many business owners find that handing over their accounting tasks to professionals not only saves time and money but also enhances overall business performance. Here are eight compelling benefits of outsourcing your accounting needs:

Cost Savings

• Reduced overhead: Outsourcing our accounting has saved my business a significant amount of money. Instead of hiring a full-time accountant and covering salaries, benefits, and training costs, I only pay for the services I need.
• Resource allocation: This approach has allowed me to allocate resources to other crucial areas of the business, such as marketing and product development.

Expertise and Accuracy

• Access to professionals: By outsourcing, I’ve gained access to experienced professionals who specialize in accounting.
• Up-to-date knowledge: These experts stay updated on the latest regulations and standards, ensuring our financial records are always accurate and compliant.
• Error avoidance: This expertise has helped us avoid costly errors and maintain precise financial statements.

Time Efficiency

• Focus on core activities: Managing accounting in-house used to consume a lot of my time and energy, diverting attention from growing the business and serving customers.
• Improved productivity: Outsourcing has freed up my schedule, allowing me to focus on strategic growth and improving our services.

Scalability

• Adapting to growth: As my business has grown, so have our accounting needs. Outsourcing has provided the flexibility to scale services up or down based on our requirements.
• Seasonal support: Whether we need extra support during tax season or when expanding operations, our outsourced accounting team adapts seamlessly.

Advanced Technology

• Cutting-edge tools: One of the unexpected benefits of outsourcing has been access to the latest accounting software and technology.
• Efficiency and security: Our outsourced firm uses advanced tools that improve data security, provide real-time financial reporting, and streamline processes.

Risk Management

• Reduced risks: Outsourcing our accounting has significantly reduced the risks associated with financial management.
• Internal controls: Professional accounting firms have robust procedures and internal controls to ensure accuracy and prevent fraud.
• Insurance coverage: Additionally, these firms carry insurance, giving me extra peace of mind in case of errors or discrepancies.

Compliance and Regulation

• Expertise in regulations: Keeping up with constantly changing tax laws and financial regulations used to be a daunting task. Our outsourced accountants are experts in these areas.
• Penalty avoidance: They ensure our business remains compliant, helping us avoid penalties and legal issues.

Strategic Financial Planning

• Informed decisions: Outsourcing our accounting has given us access to financial insights and strategic planning that have driven our growth.
• Budgeting and forecasting: Experienced accountants provide valuable advice on budgeting, forecasting, and financial planning.

How We Can Help

At The Schlott Company, we specialize in providing customized outsourced accounting solutions tailored to your business’s financial needs. Our services include:

• Initial Consultation (1 hour):
  • Understand your business and financial goals.
  • Identify key accounting challenges and needs.
• Accounting Setup (5 hours):
  • Develop tailored accounting processes.
  • Automate data integration for seamless financial tracking.
  • Provide training on using new systems and tools.
• Monthly Maintenance and Review (3 hours/month):
  • Ongoing bookkeeping and reconciliation.
  • Monthly financial reviews and reports.
  • Adjustments based on business changes and growth.
• Quarterly Strategic Planning (2 hours/quarter):
  • Budgeting and forecasting sessions.
  • Tax planning and preparation guidance.
  • Financial health check-ups and optimization.
• Comprehensive Annual Review (4 hours):
  • Year-end financial analysis and reporting.
  • Strategic planning for the upcoming year.
  • Recommendations for improving financial performance.

Total Billable Hours:

• Initial setup and training: 6 hours.
• Monthly maintenance and review: 3 hours/month.
• Quarterly strategic planning: 2 hours/quarter.
• Annual review: 4 hours.

Please help support The Schlott Company by sharing this article on social media if you enjoyed reading it. Your support is invaluable in helping us reach more small business owners who can benefit from our services. Thank you!

Final Thoughts

In my experience, outsourcing our small business accounting has been a game-changer. From cost savings and expert advice to advanced technology and risk management, the benefits have been immense. By entrusting our accounting needs to professionals, I can focus on what I do best—growing the business and serving our customers. If you’re considering outsourcing, I wholeheartedly recommend it as a strategic move to enhance efficiency, accuracy, and overall business performance.