Advantages of Using Outsourced Accounting Services

It’s a startling but true fact that as many as thirty-five percent of America’s largest businesses now outsource their accounting needs. This is likely due to the prolific growth of the Internet and the ability of accountants to work with larger companies remotely online. But the use of outsourcing accounting is not limited to large firms on Wall Street. Small businesses are not immune from their need for high quality and affordable accounting services, and can thus also benefit from accounting outsourcing as well.

Technological advances have worked to level the playing field between larger companies and smaller ones, allowing them to outsource some of their important tasks out in order to save money on payroll, overhead, and benefits while freeing up the time of business owners to do other tasks, such as working with their customer base. After all, time that is spent on accounting tasks will add very little to the customer relationship!

When many people think of “outsourcing”, they automatically think about outsourcing to overseas locations. This is not always the case. There are many firms in the United States that provide outsourcing services like accounting that do not take away jobs from our own skilled workers. In this sense, outsourcing simply means that you are outsourcing the task of accounting to an accountant that does not work directly for your company. The accountant can still be located in the United States, and in many instances, is.

Many successful businesses today have chosen to go with online outsourcing of their accounting and bookkeeping tasks. The key advantages as a business owner when it comes to outsourcing your accounting needs include:

There are two methods for small business accounting that are normally accepted – cash accounting and accrual accounting methods. The type of accounting method that is used for your business may be just a matter of preference, but some businesses are required under law to use the accrual accounting method. The accrual method of accounting will show the financial health of your company in real-time, and it is the preferred method by many businesses. Most accounting software that is used for businesses can move from accrual to cash accounting by simply checking a box. For those businesses that are simple and don’t generate a lot of revenue, the cash accounting method is by far simpler, and most accountants for small businesses recommended the cash accounting method.

• Focus on your business. Outsourcing accounting gives you the ability to focus on the core of your business by off-loading this non-core business function to someone else. Accounting is one task that is easily outsourced and you no longer need room within your office for the accountant to work.
• Get skilled help for less. You will have access to skilled accountants at very affordable fees. In fact, some business owners report that by outsourcing their accounting tasks, they can actually save as much as half on accounting fees or hiring an on-staff accountant. But just because the accountant is not working from your office doesn’t mean that they are not well-trained. Most accountants that work freelance or that are available through outsourcing companies are certified public accountants (CPAs). They have the know-how and expertise to get the job done right.
• Accounting services when you need them. An outsourced accountant will be available full time. Many companies find that when they have an on-staff accountant that problems can arise when the accountant works only part time, calls in sick unexpectedly, or even leaves their employ without giving sufficient notice. Online accounting allows for reliable, full-time accountants that deliver professional results.
• Perfect for tight deadlines. You will have the benefit of overnight turnaround when needed for important documents. Many times, information is needed right away. Outsourcing allows for expedient turnaround of time-sensitive information and forms.

In business, a lot of decisions that must be made involve the ‘bottom line’. Outsourcing makes sense for growing businesses on a number of fronts.