Should You Consider Outsourced Accounting Services for Your Small Business?

Should You Consider Outsourced Accounting Services?

Have you been wondering whether or not to outsource accounting for your business? If you’re like most small business owners, you’ve considered hiring a CPA to manage your books or keep track of payroll. But have you ever really found the help you need to streamline your financials and stay on top of taxes? On the other hand, has the DIY approach been failing you?

You see, the vast majority of small business owners don’t come from backgrounds in finance. While they may be equipped with the entrepreneurial spirit, expertise in their field, and knack for business, the accounting aspect of running a company tends to be a challenge for most because (simply put) they don’t know what they don’t know. And often, when they come to us, they don’t know where to begin.

As a small business owner, you should be focused on what you do best: selling your products and services. Not constantly drowning in numbers. So, with that said, your first thought may be, “I’ll just hire someone to take care of my accounting full-time, then.”

But let’s think about that for a minute.

Should you hire a full-time, internal accountant?

Many small business owners know they need to let someone else handle the financials so they can have the time to focus on running the business. However, newer small businesses, especially those in an early growth phase, should not over-extend themselves by hiring more personnel than what they need and can afford.

All businesses need a professional to take care of their accounting. They need someone who knows the ins and outs of business finance, managing and monitoring cash flow, the intricacies of the new tax law, and so much more. But hiring someone in-house can be extremely costly.

Can you really afford to pay an accountant’s full-time salary?

Why your small business should consider outsourced accounting

From streamlining your financial management processes to simply taking a massive workload off your plate, you should consider outsourcing your accounting needs for these five reasons.

1. Outsourced accountants help organize your finances

Often, clients come to us with their business finances in chaos. We’ve seen everything from tax documents in shoe boxes to a complete lack of organization altogether. Usually, they’ve been attempting to do their own accounting for years but, over time, the process has become too unwieldy for them to manage on their own.

Other times, the business is new but they have no idea where to begin. Sometimes, there’s no solid bookkeeping process; other times, there’s no knowledge of what goes into keeping their business compliant with tax laws. This isn’t necessarily their fault – they’ve simply never done it before and need a little guidance.

Regardless of the situation, a good outsourced accounting team will help get all aspects of your business’ accounting in order. An organized accounting process ensures nothing slips through the cracks, or worse, gets you in trouble with the IRS.

2. Outsourced accountants serve as a support system

In addition to thinking of them as CPAs, you should also think of your outsourced accountants as a support system for you and your business. Especially when you first start your business, there may be much you don’t know about accounting and will likely have questions about. There may be times when you feel overwhelmed and worried about your finances.

Think about it. Sometimes, running a business can be scary, especially when it comes to money. No one feels great when receiving an audit from the IRS, no matter how diligent and honest you’ve been with the agency. A good outsourced accounting team should act as a buffer between you and any array of challenges the IRS (or anyone else) throws at you.

3. Outsourced accountants give you more time to manage your business

While this may be stating the obvious, accountants are experts in accounting, and you’re an expert in your business. Your job is to go out and sell your products and services, to generate revenue, and grow your company. When you get bogged down in numbers and taxes and finances, you can’t focus on what you do best.

Outsourcing your accounting allows experts to crunch the numbers while you run your business. A good outsourced accounting team cares about you and your company – your success should be their success.

4. Outsourced accounts are knowledgeable about complex tax issues

A major aspect of managing finances for your business is proper tax planning. The complexity of the new Tax Cuts and Jobs Act makes it all the more crucial to thoroughly plan for each tax payment and every possible deduction available to you, such as the new QBI deduction.

Additionally, many new business owners don’t realize that paying quarterly tax deposits can save them a great deal of grief later on. They often don’t know how much they should be paying in the first place. And, if they haven’t proactively planned for possible deductions, they could be paying way more than what they’re legally obligated to pay.

As a business owner, you don’t have time to constantly stay abreast of every tax code change that may affect you. That’s a job for your skilled, outsourced accountant.

5. Outsourced accountants add value and help your business grow

Good outsourced accountants can drastically streamline your operations and add incredible value to your business.

Many business owners consider accounting to be a hassle. But it’s important to understand how quality financial data can be used to better manage a business, improve its profitability, improve its efficiencies and, overall, improve most aspects of the business as a whole.

Knowledgeable outsourced accountants will help you accomplish this, all the while taking a huge weight off your day-to-day workload. When the cogs that go into your business machine are in full working order, your business grows. It’s that simple.

How the Keller CPAs at Pine & Company can help your business

Our outsourced accounting service in Keller, Texas, is one of the most valuable services we offer. We even scale these services based on your specific needs and budget because we believe there is no one-size-fits-all approach.

These services can be as minimal as meeting with us once a year to review financials and verify that your data is correct and up to date for tax filing. They can also be as involved as working with us monthly so that we can thoroughly fulfill all of your top-to-bottom accounting needs.

If you’re ready to see how we can help you, please reach out to us today.

You can also learn more about us and what we do here.