Every business has at least some basic accounting needs. If you have a professional income and spend money to keep your business running, it’s important that you’re properly maintaining your books and keeping up with all of your financial records. While some businesses prefer to do this in-house (either on their own or through an accounting department), there are actually numerous benefits to outsourcing your business’s accounting services. Keep reading to learn what they are.
Get Your Time Back
We specialize in working with contractors, many of which are small businesses with only a few employees. Small-business owners often try to maintain their own books and take on the responsibilities of accounting, as well as the typical responsibilities associated with business ownership.
But this takes valuable time away from where your focus should truly be: growing your company and ensuring efficient day-to-day operations. As your company grows, accounting becomes more complex and takes more time away from these other responsibilities. By outsourcing your accounting services, you get more time back to focus on the things you’re passionate about, and helping your company succeed.
Utilize Expert Advice
Even if you’re meticulous about maintaining your books accurately, the fact remains that most business owners are not accounting experts. When you outsource to a professional accountant, you have access to someone whose experience and knowledge in the area far exceeds your own. They can maintain your books accurately and in an unbiased manner, while also providing professional advice on how to better manage your finances.
A third-party accountant can do more than just help you maintain the status quo. They’ll advise you on areas where you could cut back on spending, provide tips on how to increase profit margins, and discuss the right time for large investments in your company, like expanding to a new office or buying new equipment. A professional accountant is more than a bookkeeper—we’re a partner in ensuring your company’s long-term financial success and growth.
Cutting Business Costs
Many business owners believe that they’ll save money by doing their own accounting or by hiring an in-house accountant. However, this isn’t typically the case. A recent study conducted by the General Auditor Information Network (GAIN) discovered that the average in-house accountant produces 1,400 hours of productivity per year. The average worker is in the office for roughly 2,090 hours each year, which means your company must absorb about 690 non-productive hours for every in-house accounting employee you hire.
These lost hours can vary widely depending on the business, but in most cases, they arise from a simple lack of work. Most businesses don’t have the accounting work to keep a full-time employee busy throughout the year, so you end up paying to have someone around, even when they’re not working. With outsourced accounting services, you pay only for the work you need, so there are no lost hours or unnecessary expenses.
If your business is still growing, your accounting needs can change drastically in a short amount of time. This requires you to rapidly hire new employees for your accounting department, which can be difficult to do. You either end up hiring subpar employees because you rushed the hiring process, or you take the time to find the right person and the work begins to pile up, leaving your books in a mess that takes ages to clean up.
Outsourced accounting services scale much more quickly and easily than an in-house accounting department. You can easily adjust the services you need or increase the number of hours that your accountant works for you each week without having to worry about the time and cost of going through the hiring process. With a third-party accountant, you can scale your accounting needs in a matter of minutes, rather than weeks or months.
Meeting Compliance Requirements
Every business must meet some kind of compliance requirements, whether it’s simple accuracy in your books for tax purposes, or more complex compliance requirements based on your industry. We specialize in working with government contractors, a field that brings with it a great deal of regulations like the DCAA, FAR, and CAS. Staying up on your books can be difficult enough; ensuring that your accounting records meet the regulatory requirements of these entities is even harder.
When you work with an accountant at Witts CPA, you can feel confident that we’re helping you to maintain compliance with any and all regulatory bodies for your industry. We are experts in our field, and we use our expertise to help your company succeed. Contact us to learn more about how we can help your business grow.