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Small Business Accounting Services: Considerations for Outsourcing

Updated: Mar 5

As a small business owner, you might have a lot on your plate. From managing your team, developing new products or services, focusing on marketing and sales, and up to ensuring your customers are satisfied; it's a never-ending cycle. It can be tough to keep up with everything, especially when it comes to accounting and ensuring your small business is compliant.

Accounting is essential for any business, and most of the time is one of the main time-consuming factors of your business. If you don't have the time, expertise or other resources to handle your own accounting, outsourcing accounting services can be a great option. It's understandable to feel like such a change may disrupt your normal business processes, but most times, change is a positive thing, especially in the long run.

There are many benefits to outsourcing accounting services for small businesses. To name a few:

  • It saves you time and money: Hiring an in-house accountant can be expensive, especially if you only need their services part-time. Outsourcing your accounting can save you money on salary, benefits, and other expenses.

  • It grants you access to expertise: When you outsource your accounting, you're gaining access to the expertise of a qualified accountant, without the hassle of onboarding them and spending your time on them. This can be especially helpful if you're not familiar with accounting or tax laws.

  • It improves the accuracy of your accounting: Accountants are trained to keep accurate financial records, and in the case of outsourcing they also come with additional expertise. Outsourcing your accounting can help you ensure that your finances are always in order.

  • It reduces your stress: Dealing with accounting can be stressful, especially for small businesses where your time could be spent on increasing your revenue. Outsourcing your accounting can take the weight off your shoulders and give you peace of mind.

What accounting services can be outsourced?

You might initially feel that it's better to hire permanent staff since they will always be there; but the same case can be made when outsourcing accounting. A good BPO not only offers the expertise, but also the guarantee that that outsourced human resource is exclusively yours! A wide range of accounting services can be outsourced, including:

  • Bookkeeping

  • Payroll

  • Tax preparation

  • Financial planning

  • Financial statement preparation

  • Audit support

  • Consulting services

How to choose an accounting firm

When choosing an accounting firm to outsource your services to, there are a few things to keep in mind:

  • Experience: Choose an accounting firm that has experience working with small businesses.

  • Reputation: Ask for references and read online reviews to get a sense of the firm's reputation.

  • Services offered: Make sure that the firm offers the services that you need. A typical service page for accounting services should look like this.

  • Fees: Get quotes from multiple firms before making a decision.

Tips for outsourcing accounting services successfully

Here are a few tips for outsourcing accounting services successfully:

  • Be clear about your needs: When you're interviewing BPOs, be clear about your needs and budget. This will help the firms to provide you with accurate quotes, and in the case of needing partial services, this can be very helpful in reducing the final quote, saving you both time and money.

  • Provide access to your financial records: The accounting firm will need access to your financial records in order to perform their services, but don't worry, this is a very normal part of the process regardless if you are outsourcing or hiring permanently.

  • Communicate regularly: Communicate regularly with your accounting staff. This will help to ensure that your finances are always in order and that you're getting the most out of their services, and most importantly, it ensures that focus is always kept on your business needs.

Outsourcing accounting services can be a great way for small businesses to save time and money, improve accuracy, and reduce stress. If you're considering outsourcing your accounting, be sure to choose a reputable firm and communicate your needs clearly.

Some additional tips for small businesses

Here are a few additional tips for small businesses that are considering outsourcing their accounting services, which ensure this transformation is as smooth as possible.

  • Use a cloud-based accounting system. This will make it easier to share your financial records with your accounting firm and give them access to your data from anywhere.

  • Automate as much of your accounting as possible. This will free up your time and your accountant's time so you can focus on more important tasks.

  • Review your financial statements regularly. This will help you to track your progress and identify any potential problems early on.

By following these tips, you can ensure that your accounting is in good hands and that you're making the most of your investment in outsourcing accounting services. Good luck!


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