The Benefits of Using a Third-Party Accounting Service
To outsource or not to outsource? That’s often the question business owners face when it comes to their accounting and bookkeeping needs. When you’re just starting out, you might feel confident in your abilities to handle your own accounting. After all, you can handle a spreadsheet well enough. But as you grow, it’s much more beneficial to get a professional accountant to do the job. Keep reading to learn why you should be looking for a third-party accounting service for your business.
Ensure Greater Accuracy
As a business owner, you have a lot to handle yourself. With as much as you have on your plate, it wouldn’t be any surprise if a few receipts slipped through the cracks. But when your business is growing, those receipts can really upend the accuracy of your books, which can have many consequences, from cash flow issues to audits and compliance problems.
A professional accountant’s sole job is ensuring that your books are accurate and your finances are being handled properly. Simply put, we’re experts in what we do, and we don’t have to deal with the constant distractions of other responsibilities related to running your business. We’ll provide greater consistency and accuracy than you can do on your own.
Reduce Business Costs
When considering hiring an accountant, you’re typically faced with two primary options: hiring an onsite employee or working with a third-party accounting service. Many business owners believe that one accountant that works in-house will be cheaper than paying for a third-party service. If you’re only comparing the annual fees for a third-party accounting service and the annual salary of a full-time employee, it might appear that way; but in reality, there are many other factors you must consider.
For starters, keep in mind that a salary is only the baseline for what that employee will cost you. You also need to consider benefits plans, PTO, equipment, and the productivity they provide while in the office. According to a recent study conducted by GAIN (the General Auditor Information Network), in-house accountants provide an average of 1,400 productive hours each year—but the average worker is in the office for 2,090 hours a year. This means that your office is absorbing the cost of 690 non-productive work hours for your in-house accountant every year.
Ultimately, hiring a third-party accounting service will usually save a business money over hiring a full-time employee to do your accounting work.
Faster and Easier Scalability
For growing businesses, scalability is always a concern—in your equipment, technology, supply chains, workforce, and so on. It’s also important to consider for your accounting needs. DIY accounting work might be okay for a single-member LLC where you’re the only employee, and all the profits go to you. But when you begin to grow, your books can get a lot more complicated very quickly, and it’ll soon become too difficult to handle on your own.
Again, an in-house accountant might be something you’d consider at this point, but in-house accounting isn’t a very scalable option. If your business’s accounting needs grow beyond that single accountant’s capabilities, you’ll need to hire more accounting team members. Hiring quality employees takes time and money, and it can be difficult to scale that area of your business effectively.
With outsourced accounting services, you can quickly and easily adjust the level of service you require, enabling you to continue meeting your business’s accounting needs without fear of falling behind or unnecessary strain on your workers.
Get Your Time Back
There’s a popular saying in the business world: Time is money. Despite how common this phrase is, few business owners take their own time into consideration when assessing the cost of hiring a third-party accountant. Your time has value, and attempting to take on the accounting needs of your business, in addition to all of your other responsibilities, can be a substantial drain on your time. This takes your focus away from growing your company and ensuring that it operates efficiently on a daily basis.
By outsourcing your accounting services, you’ll be getting more of your own time back. And because “time is money,” you can “reinvest” that time back into your business—refocusing on the things you’re truly passionate about and helping your business to continue to grow.
At Camputaro & Associates, we provide expert accounting and bookkeeping services for business like yours. From profits and losses to filing your business tax returns and more, we can help you manage your business’s finances more effectively. Contact us today to schedule a consultation.
Camputaro and Associates
Certified Public Accounting Firm
136 N. Orchard Street, Suite 8
Ormond Beach, FL 32174