Outsourcing your accounting, like many other functions of your business, can prove to be beneficial in many ways. Here are five such benefits of outsourcing your company’s accounting operations.
#1 – Time to Focus on Growth
Outsourcing your accounting gives you the time to focus on your core competencies. What is your business best at? What can you do better than anyone else? What produces revenue and growth? Spending more time on these core competencies and less on the administrative burdens of your business accounting, will give you better results: Results far outweighing the cost of outsourcing.
#2 – Never Miss a Payment
Never worry that you’re bills aren’t getting paid or invoices aren’t going out on time. If you’re still handling the accounting function of your business, or you’ve assigned the task to another team member, who has other operational responsibilities within the business, chances are, accounting takes a backseat. If invoicing gets delayed, payments get delayed and cash flow suffers. If bills don’t get paid on time, you get behind, you receive collection calls, you lose vendor discounts, and spend even more time dealing with shut-off notices, collectors, and unhappy vendors. With a team focused on your accounting, your invoices and payments go out on time, every time.
#3 – Keep a Handle on Your Cash Flow
Businesses can live or die by their cash. Growth sucks cash. During times of significant growth is also typically when things like accounting can move to the bottom of the list. You get behind on your bookkeeping, you don’t have time to review reports, you don’t have time for managing collections, and before you know it, you’re bone dry. Your business is booming, yet you have no cash in the bank. Getting out of a hole like this can take more than twice as long as it took to get into it and you lose sight of the business while trying to dig yourself out.
#4 – Never Worry about Turnover or Absence
With an outsourced provider, your accounting gets done every day, every week, every month, regardless of vacation, illness, or turnover. You have a team working for you and it’s the responsibility of your outsourced provider to cover vacations, train new hires, and make sure the work’s getting done in between.
#5 – You’re Still in Control
With an outsourced provider, you may think you’ll lose control of your money, but you’re still in the driver’s seat. You approve all payments being made. You determine the chain of communication with clients. You help in the development of processes. With an outsourced provider you can actually gain more control. You receive consistent reporting. You get a handle on your cash flow. You get reports that help you manage your business. When business picks up and you’re feeling bogged down and behind on everything else, you’re accounting is still getting done, giving you control over your finances.