Focusing on Your Core Business
Author: Paul Cantelli
Is accounting a core focus of your business? Is it an area where you excel? If the answer to either of these questions is no, you're like most people who own a small business. While accounting and bookkeeping are crucial to complying with tax law and to understanding what is going on with your business' operations, you can outsource accounting and bookkeeping duties to an expert third party. Here are five ways that this helps:
- Reduces your accounting costs: When you outsource accounting, you bring in experts with the right tools to get the job done quickly and efficiently. Instead of paying salaries, payroll taxes and benefits for your staff to fumble through the process, you just pay a reasonable fee to an expert.
- Provides better financial information: When you have a professional accountant handle your bookkeeping, you will get the benefit of receiving professionally prepared reports. This helps you better understand how your business is performing and where your money is coming from and where it is going. The professional statements you get when you outsource accounting may also help you get a loan since lenders typically require detailed financial reports.
- Keeps better track of cash flow: Have you ever been caught short without enough cash on hand to pay a vendor? When you outsource accounting, your accountant can help you plan your expenditures so that they better track your business' receipts.
- Saves time: Do you have time to do everything you need to? Getting outside help with your books frees you and your staff up to work on tasks that are directly related to your business.
- Plans for tax time: If you get your books to your accountant in February to file your taxes in April, it's already too late to plan. When you outsource, your accountant can help you plan throughout the year and save you money on April 15.
