If you’re like most business owners, you understand the importance of accounting and bookkeeping. However, you may not have the time or resources to handle all these tasks yourself. Fortunately, various services can care for your accounting needs, freeing up your time to focus on other aspects, such as your business’s operations or sales.
Benefits of outsourcing your accounting function
There are numerous reasons to outsource your accounting function. Even if you have the time or expertise to take care of the accounting in your business, it can drain your time and focus. Handling the day-to-day tasks off your plate will allow you to focus on the core functions of your business, while you can be sure that someone with the right expertise in handling the accounting function.
Save Time
The number one reason most owners consider outsourcing their accounting function is to free up their time. When you outsource your accounting function, you delegate these tasks from your to-do list to someone else’s list. You can then focus on other aspects, such as the core operations of your business that need your attention.
Stay nimble as your business grows.
Some business owners are wary of hiring personnel, mainly when their business is rapidly growing and changing. A benefit of outsourcing your accounting is that it can be customized to fit the specific needs of your business when you need it. You will be able to find an expert who can provide you with the level of support you need right away, whether it be full-time or part-time. Then as your business evolves, rather than hiring additional staff or investing in training, you can upgrade to a more comprehensive set of services so that the firm can provide you with expertise that continues to fit the needs of your business.
Access to Expertise
When you outsource your accounting function, you will work with a team of experts who already have the knowledge they need to provide you with the best level of service. You will not need to invest in in-house training or onboarding. Your team of accountants will be ready to advise you on financial matters and help you make the best decisions for your business.
Cost Savings
Another great benefit of outsourcing your accounting function is saving you money. Some businesses have enough work to hire full-time resources for their accounting and bookkeeping. Other companies might have fewer transactions and only need part-time staff support. You can avoid hiring an in-house accountant full-time if that is not the right move for your business. Outsourcing accounting or bookkeeping tasks can help you keep your costs down if you only need part-time or month-end support.
Focus on your zone of genius
Once you outsource your accounting tasks, you can focus on more critical aspects of your business. For example, you will not have to worry about the day-to-day finances of your business and ensuring that everything is up-to-date.
When you outsource your accounting function, your time is free to focus on your core business activities. You leave the accounting function to the experts while concentrating on the tasks that best use your time and expertise.
What types of accounting services can you outsource?
You outsource or delegate all or only some accounting tasks on your to-do list. Every business is unique and has different needs at any given time.
Most accounting firms offer a full range of services. You might outsource all of it or retain some of them within your business and outsource other parts of your accounting function.
Bookkeeping
Bookkeeping takes time, and there’s no way around it. Managing the books can be time-consuming, even if you understand your business transactions inside and out. However, it is also an essential step as the data from bookkeeping is used to compile your financial statements and file your business taxes. By outsourcing it, you can save time and improve the accuracy of your books.
Accounting
Accounting relies on your business’ bookkeeping to produce financial reports. The accounting function organizes and analyzes your company’s financial data to give you a clear picture of your business’s financial position. Your business needs to have accurate financial statements to understand the financial performance of your business. Outsourcing this task can ensure you receive accurate reports promptly to make relevant decisions.
Controllership/CFO Services
If you are looking for more internal support for your business finances, you might consider outsourcing your controllership or CFO function. A part-time CFO or controller can be an excellent option for businesses that do not have the internal resources to support these functions full-time. In addition, controllers or CFOs can ensure that your accounting is done on time and implement and oversee your business’s internal controls to reduce the risk of fraud.
Tax Planning and Compliance
Taxes are one of the most critical aspects of your business, and it is essential to ensure that you comply with all tax regulations. Tax planning and compliance can be complex and cumbersome, but it is necessary for your business. By outsourcing this function, you can ensure that your business complies with all required filings and avoid penalties for late or inaccurate filings.
Payroll Services
Another important aspect of your business is payroll. Payroll can be complex and time-consuming, but ensuring that your employees receive paycheques on time is essential. When you delegate or outsource your payroll function, you can rest assured that your employees are paid accurately and on time by outsourcing your payroll function.
Financial Planning
As your business grows, financial planning can be a crucial element of the accounting function. It involves projecting your future income and expenses and developing a plan to achieve your financial goals. Financial planning is a complex task but critical for your business as it grows and matures. By outsourcing this function, you can save time and ensure that your business is on track to meet its financial goals.
Consulting Services
You might consider outsourcing your consulting services if you have a handle on your accounting tasks but need a little more financial support. Often, these might be one-time projects to help you understand a particular financial transaction or take advantage of growth opportunities. Accounting firms can provide specialized services, such as financial modelling or business valuation, whenever your business needs it.
How to find the best accounting partner for your needs?
When you’re ready to outsource your accounting function, the first step is to find the right partner for your accounting needs.
It is essential to find accounting experts who understand your business and provide the services you need to run a more efficient business.
Evaluate your needs
Identify the services you need now and in the next stage of growth. Changing firms and bringing a new firm on board if your company outgrows them quickly can be inconvenient. Your accounting partner should be able to provide you with the services your need as your business grows and evolves.
Search for firms in your local area
You must make sure you choose a reputable and reliable accounting firm.
A local firm in your area can be helpful for your business, especially if your business is not online. You can meet your accounting partners in person and build a trusting relationship. An added benefit may be that they are more familiar with local tax laws, especially if your business needs to comply with provincial tax filings.
Ask your network for recommendations.
Another way to find a reputable firm is to ask your network for recommendations. You can reach out to your industry peers and ask whom they trust for their accounting needs.
You can also ask your professional advisors, such as your lawyer or banker. They may have worked with different accounting firms and can provide some insights.
Industry expertise
When looking for an accounting firm to support your business, finding one with experience in your industry is essential.
They will be able to provide you with the specific services you need to run your business efficiently. For example, if you operate in a technical field, your accounting partner should be able to handle SR&ED claims.
Outsource your accounting function for business growth.
Outsourcing your accounting function can save time and ensure that your business complies with tax regulations. Accounting firms can also offer services beyond the basics while providing access to expert knowledge when you need it.
It is vital to evaluate the needs of your business before picking an accounting partner your trust. Then, when you outsource the accounting tasks, you can focus on more important things and leave the accounting to the professionals.
Contact Edelkoort Smethurst CPAs LLP in Burlington for Experienced Accounting Advice
Talk to a skilled accounting professional to find more ways to save time and costs on your accounting needs. At Edelkoort Smethurst CPAs LLP, our business experts can provide services to support your accounting function, whether you need partial or complete support. In addition, we can provide you with recommendations on how to implement and streamline your accounting function to work best for your business. To learn more about how Edelkoort Smethurst CPAs LLP can provide you with the best accounting expertise, contact us online or by telephone at 905-517-2297 or click here to schedule a free consultation.