Sep 02, 2021Why Outsourcing Accounting Could Be Your Best Business Decision of 2021
If you’ve been paying attention to the business dialogue in the last few years, you’ve noticed a constant debate on the topic of outsourcing. Supporters of outsourcing and contracting argue that a company can focus on its core competencies by getting rid of accessory business operations. The other side holds that keeping tasks in house can reduce dependency on others. So, which one is right? Although outsourcing isn’t for everyone at every stage, we are full supporters of outsourcing. Let us tell you why.
#1 Save Money
Although it may seem counterintuitive to pay someone else to complete operational tasks, business owners need to recognize that there is always cost associated with operations. If an activity is kept in-house, the company must pay for the wages, the supplies, and the training. Also, arguably the most critical cost in this decision is opportunity cost. Every hour an employee spends on something that is outside of their core skills and abilities could probably be done somewhere cheaper. Remember to keep your bread and butter in-house, but outsource activities that distract from those abilities.
#2 Efficient use of personnel
Apply a critical eye when reviewing the need for an in-house accounting professional. As companies outsource day-to-day accounting tasks, they lose competency to perform in revenue-generating processes, core services, and production. Outsourcing accounting also allows you to bill exactly the number of hours an accounting professional spends on your business. Use personnel more effectively by paying per hour, rather than a team’s entire salaries.
#3 Better quality work
When you outsource accounting, there is more opportunity to look for the best company to handle accounting tasks. Instead of hoping that a new hire has the right brain for the job, rely on company reviews, assessments, and initial inquiries to drive you in the right direction. Accountants who perform outsourced work are held to an exceptionally high standard, one that requires them to be meticulous about their work. Rely on this process as your decide whether or not to keep accounting in-house or not.
#4 Enhanced Security
By transferring in-house accounting functions to an outsourced professional, you can ensure that your records are kept secure. Security for accounting professionals is tight, and businesses employ the highest level of data security when handling client information. Consider your own data security process and consider if it’s up to par with what you’d expect of another company.
#5 Professional Guidance
Many accounting companies offer simple bookkeeping to their clients. However, accounting becomes powerful when it becomes an analytical tool. When you outsource your accounting, look for companies that also offer strategic guidance and tax planning as part of their package. Accounting in isolation isn’t useful. However, financial statements and tax returns that are studied and analyzed become an irreplaceable benefit to a company. Don’t settle for simple bookkeeping. Expect the brains that come behind the numbers.
If you’re considering outsourcing your accounting, reach out to Nimbl for a free assessment. We’ll go over your books and provide a recommendation for the best way to go forward. Contact us today!