How to Choose the Best Outsourced Accounting Service
Updated: Nov 6, 2018
The U.S. has one of, if not the biggest administrative costs in the world, topping $2.87 trillion a year. You'd think that's impressive, right? But unfortunately, it's not - it's a major inefficiency that leads to loss of productivity.
It's a huge loss that affects all sectors, whether for-profit or non-profit. It affects all sizes of organizations, from the biggest to the smallest entities. FYI, small businesses spend about 240 days - a whopping eight of 12 months - for admin tasks alone.
Number-crunching is one such time-consuming task. You know this, which is why you're now considering outsourced accounting services.
Good for you then, because outsourcing accounting tasks can free up a lot of your valuable time. Time that you can spend on core activities.
The question now is, how do you make certain you choose the right accounting service provider?
Decide What Kind of Accounting Help You Need
Did you know that there are at least six different types of accountants? You're likely familiar with public accountants, financial advisors, and tax professionals. But there are also the auditors, forensic accountants, and consultants.
Each of these accountants have their own areas of specializations. Most of them also offer their services for outsourcing. That said, you should first determine what accounting task you need help with.
If you need help with specific tax-related tasks, then you'd want to hire a tax pro. If you need investment and financial guidance, a financial advisor may be the best choice. If you need help with general accounting-related tasks, you'd want to go with a public accountant.
The good news is, the best outsourced accounting firms offer help in all areas of accounting. That'll make it easier for you since you can depend on them for whatever accounting help you need.
Flexibility of Offered Solutions
A 2016 Deloitte study found that 42% of participants outsourced their finance tasks. It also found that the main reason for this reliance on outsourcing is to cut costs. After all, flexibility is one of outsourcing's biggest benefits.
Keep in mind though that each accounting firm has varying levels of flexibility. Some have short-term contracts, while others offer "pay-as-you-use" packages. You'll also find some offering access to an entire team of pro accountants for an entire month.
So, which one should you choose then?
It all depends on your organization's level of accounting needs. A month-to-month package may be a good place to start. This way, you can see how effective the services are to your business. If they indeed proved helpful, then you can keep renewing the contract every month.
A Team of Veteran Accountants
Another benefit of outsourcing is access to an entire team of accounting professionals. That means you can get help with bookkeeping tasks as well as tax and financial planning help. In fact, you can delegate any other finance-related task to such a firm.
From invoicing to payroll to reporting - all these and more a team of accountants can handle for you. This is true even if you already have an accountant. You can choose to retain his/her service and get specialized help from your outsourced team.
Use of the Latest in Accounting Technology
Number-crunching through the cloud is the new face of accounting. For starters, it minimizes overhead costs (less use of physical space, hardware, etc.). Cloud-based accounting also offers a safer, more convenient means to manage financial data. Storing, revising, adding, and monitoring data are all done online.
That means you can access all your books and data 24/7, on-the-go, or wherever in the world you may be. You can create new entries or revise existing tables. Of course, if you outsource these tasks, then a professional accountant will do all that for you.
This said, you'd want to outsource accounting tasks to a firm that offers cloud-based services.
Implementation of Powerful Cyber Security Technology
Speaking of the Internet, there's the matter of cybersecurity. Unsecure networks have led to 58% of small businesses being cyberattack victims.
The last thing you want is outsiders accessing your business' sensitive information. So, make sure your outsourced accounting team uses only powerful cybersecurity technology.
Regular Data Backups for Greater Protection and Security
Since we're on the subject of data safety and security, let's talk about data backups. Disasters, like acts of God, can strike anytime and put your data at risk. Loss of data won't only cause downtime but also lead to legal liabilities.
That said, regular backups of all your data, financial information included, are a must. Choose a reputable accounting firm, and you can make certain this is part of their protocol.
Exceptional Support You Can Rely on Anytime
Accounting can be a real pain to many, even to those with some experience in it. It's worse for those who've always had an aversion to math and numbers in general.
Are you one of these people? If so, then outsourcing your accounting tasks is in your business's best interests. With a team of experts on your side, you can always rely on their help and support whenever needed.
Of course, you need to ensure the firm has a reputation for excellent customer service. One way to determine this is through their client retention rate. An impressive client retention rate indicates happy and satisfied clients.
Outsourced Accounting Services for the Smart and Savvy Entrepreneurs
Outsourced accounting services allow you to save time and money. It gives you the chance to focus on your business' core mission and vision. Concentrating on what you do best is essential to gain an advantage over the competition.
Remember: 99.9% of all businesses in the U.S. are small businesses. That should already tell you that you're dealing with some serious competition. By outsourcing accounting tasks, you'll have more ways to outperform your competitors.
Connect with us now if you're ready to take your business to a whole new level. The sooner you do, the less time and effort you'll spend on productivity-decreasing tasks.