When it comes to running a business, accounting is an extremely important piece of the puzzle. It may not be the most exciting part, but it is crucial to the business; success. There are several options for handling the books for a company, one of which is to hire a firm that specializes in full-service accounting. Full-service accounting covers all day-to-day accounting functions, including accounts payable, accounts receivable, payroll, and cash transactions, as well as monthly activities like inventory tracking, journal entries, reconciliations, month end closing, and financial reporting. If this sounds like a lot, don’t worry—your outsourced accountant will take these responsibilities off your plate and deliver benefits to simplify your job.
Lower Farm Accounting Costs
One benefit of outsourcing accounting functions is avoiding the expense associated with employing a full-time accountant. These costs may include salary (which depends on skill and education level), benefits, and payroll taxes. In addition, fixed costs like office space, computer software, and hardware expenses can also be reduced or eliminated.
Working with a Team
When you hire an outside firm to perform accounting duties, you’re not just hiring one accountant—you’re hiring an entire team. This means you’ll have accountants, consultants, and other finance professionals available to provide backup, if necessary. If accounting is managed in-house by one person, when that person takes vacation or is sick, who will be available to cut checks or process payroll? When you have an entire team available to perform those duties, you’ll also have peace of mind and ensures that all processing can be done in a timely manner.
Hiring that team of accountants, consultants, and other finance professionals also means you have access to experts with a wide knowledge base in accounting and finance. This provides opportunities for collaboration between several professionals to manage complicated transactions or new rules relating to tax or other accounting areas.
When you consider the base salary for an in-house accountant combined with additional G&A costs and lost time due to sickness or vacation, you may find it more advantageous to outsource the role. Gaining access to a capable team of experts with varied skill sets who will collaborate to handle your accounting needs makes hiring a firm for full-service accounting an appealing option. When deciding how to handle your books, taking time to assess the benefits of outsourcing accounting functions is worthwhile!
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