3 Problems You Solve by Outsourcing Your Accounting Tasks
Updated: May 24, 2021
It’s not uncommon for business owners to prioritise the cost of any service they’ll purchase. This applies to any business transaction, from securing a vendor to outsourcing their brand management. However, there’s more than one kind of cost that affects a business. Understanding the true value of what you’re exchanging for capital will give you more insight into what you’re getting in return.
The relationship between accounting and opportunity cost
A business’s accounting needs to be in top condition to ensure that it can run smoothly without running into financial and logistical issues. Unfortunately, many startups and small businesses cannot transition properly without making several scaling mistakes. These minor setbacks can pile up and cause considerable damage to your company. Thankfully, outsourcing your accounting allows you to minimise these opportunity costs in exchange for a service fee. Realising your potential gains is one way to gauge how hiring an accounting firm can benefit your company’s overall effectiveness.
Before you turn down an accounting services’ help, here are three problems that they can mitigate for you:
Business owners need to overcome the learning curve of being familiar with a routine, from creating sales projections to handling marketing responsibilities. Once they create a stable system, they can focus on scaling up their business. However, this transition can invite many potential issues. It’s not unlikely for a company manager to plug holes in their business’s operations if they don’t have the right training and expertise to manage them.
Hiring an accounting firm lets you focus on your business’s growth by giving you time to develop the necessary skill sets in being a business owner. The less time you spend micromanaging your bookkeeping, the more opportunities you open for self-learning. It’s an excellent way to fast-track your company’s development while mitigating any stress from overseeing accounting issues.
2. Bookkeeping accuracy
Part of why you lose too much time overseeing your accounting is due to inaccuracies from your own bookkeeping. It’s understandable for business owners not to have the best understanding of accounting practices. Even your own team can commit mistakes if they don’t have enough industry experience in handling finances.
Hiring a professional accounting firm ensures that you receive the right treatment appropriate for your business’s scale and scope. Since they deal with clients in various industries, with some connected to or close to yours, they know the right ways to oversee your bookkeeping. This allows them to perform tasks accurately, such as effective revenue tracing to sales projections.
3. Professional accountability
Small businesses generally have the issue of overlapping tasks between available staff. Although this allows employees to develop versatile skillsets, accountability can be an issue if there are no distinctions on concrete roles. If you don’t have a proper system to track outputs and delegations, you may end up losing track of who’s accountable for which mistake. Being in contract with an accounting firm makes them liable for any potential errors in their output. This makes them duty-bound to ensure that all your ledgers and reports are accurate. Otherwise, they will end up shouldering and compensating for these issues.
It’s easy to look at a price tag when considering if you need help from a B2B or SaaS company. Besides comparing prices from different providers, you also need to assess your company’s need for structured and professional output. This is why outsourcing your accounting is an expense that can have a significant return on investment for your company.
At New Wave Accounting, we employ modern accounting strategies headed by the best accountants in the Gold Coast. We assist business owners in all their bookkeeping needs, from in-depth tax assessments to advisory mentoring. Contact us today, and our professional accountants will see to it that you receive top-notch services!