4 Benefits of Outsourcing Accounting Services for Your Small Business

Jovan Johnson, MBA, CFP®, CPA/PFS

Every small business owner eventually hits a point where they are at capacity. In the early stages, it is common to wear many hats, handling every task solo. Yet, to scale and grow a sustainable business, you will need to delegate or outsource certain roles at some point. Accounting, notorious for its complexity and time-consuming nature, is typically the least favorite aspect of running a business for many entrepreneurs. 

If you find yourself stretched thin and seeking ways to lighten your load, outsourcing accounting services for your small business could be the solution you need. By doing so, you will free up time to focus on activities crucial for scaling and growing your business. In this article, we will discuss four benefits of outsourcing accounting services for your small business. 

Benefits of Outsourcing Accounting Services for Your Small Business

1.) Strategic Partnership and Accountability

Entrepreneurship can often be a very lonely journey, making it invaluable to have a strategic partner to brainstorm ideas and strategies. Moreover, having an accountability partner who is not afraid to push us when needed can greatly enhance productivity and progress. By outsourcing accounting services to a trusted team, you can cultivate a strong partnership built on rapport and trust. Leveraging their skills and expertise can allow you to focus on activities within your “zone of genius” while delegating less enjoyable time-consuming activities. 

Another key benefit of this partnership is access to a network of professionals when needed. Instead of relying on a mere Google search, your outsourced accounting team likely has a vast network that you can tap into for additional support. 

2.) Education Opportunities

Whether you choose to hire an accountant or outsource accounting services, as a business owner, you must understand the underlying processes of what they are doing. Use this opportunity to learn more about the role of accounting in your business and its significance for the success of your business. Lean on your outsourced accounting team for clarification on any financial or accounting questions you may have.

Outsourcing provides you access to specialized knowledge and highly trained professionals who can help educate you on the best actions to take to scale your business. 

3.) Save Time and Money

Outsourcing accounting services can save you both time and money. When it comes to managing accounting tasks within your business, you typically have three options: handling it yourself, hiring an in-house accountant, or outsourcing. However, the first two options demand significant time investments. Whether you find yourself cleaning up your books late on a Saturday or training a new employee on your processes, the time commitment can be substantial. Then there is the last option, outsourcing. You can save time by letting an outsourced accounting team handle all the accounting and financial tasks. With professionals managing bookkeeping, financial records, taxes, legal compliance, payroll, supplier payments, and expense management, you can focus on other critical aspects of running your business.

Moreover, outsourcing presents significant cost-saving opportunities. Unlike maintaining an in-house team, outsourcing eliminates expenses such as payroll taxes, benefits, equipment, and training. Opting for an external accounting team involves a straightforward expense. Additionally, outsourced teams often operate with more efficient processes and systems, resulting in further cost-effectiveness. 

4.) Enhanced Accuracy and Compliance

Let’s be honest. For most small business owners, accounting isn’t their forte, nor is it something they particularly enjoy. This often results in costly errors and mistakes. Among the greatest fears of small business owners is the prospect of facing IRS scrutiny. However, this fear can be alleviated by partnering with a trusted outsourced accounting team. An important aspect of their role is to ensure the accuracy and compliance of your accounting and financial reporting. 

Additionally, the ever-changing landscape of accounting and tax rules and regulations can be overwhelming to keep up with, making outsourcing these tasks a smart choice. 

Ultimately, accurate and trustworthy numbers are essential for making informed strategic decisions to grow your business. By entrusting this responsibility to a dedicated team, you can breathe a sigh of relief and focus on scaling your business.

Final Thoughts

As your business expands, so do your responsibilities. Scaling up demands delegating time-consuming tasks that detract from your focus on growth. Entrusting these responsibilities to the right outsourced accounting team ensures your business remains compliant, profitable, and positioned for continued growth.

If you would like to learn more about our outsourced accounting services for your small business, please feel free to schedule a free consultation.

Disclosures

None of the information provided is intended as investment, tax, accounting, or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement, of any company, security, fund, or other securities or non-securities offering. The information should not be relied upon for purposes of transacting securities or other investments. Your use of the information is at your sole risk. The content is provided ‘as is’ and without warranties, either expressed or implied. Piece of Wealth Planning LLC does not promise or guarantee any income or particular result from your use of the information contained herein.