Top 5 Benefits of Hiring a CPA Firm for Your Accounting Needs
DIY is all the rage these days. The general attitude among most people seems to be “Why pay for it when you can do it yourself?” And while this policy might work out just fine for building a coffee table out of wood pallets, there are certain things that you’re better off paying for—and bookkeeping is foremost among those. Contrary to popular belief, it takes more than a basic understanding of Excel and Quickbooks to do proper bookkeeping and accounting for a business. So here are the top 5 reasons you should hire a CPA firm to handle these things for you.
Greater Opportunity Cost
For every minute you spend on doing your own bookkeeping, you lose a minute that you could be spending on something else. So, while you may feel that doing your own bookkeeping is “free,” in reality, you’re sacrificing important opportunities to grow your business.
While bookkeeping and accounting are essential to maintaining a business, that is all it will ever do—maintain it. Balancing sheets and P&L reports will never directly help your business to grow. But if you hire a third-party CPA firm to handle this task for you, you can instead focus your time on tasks that can actually help your company grow. You can attend conferences, meet with prospective clients, develop new products, and focus your attention on endeavors that will truly benefit your company, rather than simply maintaining the status quo.
Access to the Latest Tools
Many business owners who do their own bookkeeping don’t stay up on the latest technologies to perform the task. They are comfortable with the tools they use, and feel that the time it would take to learn a new system would be time wasted. However, many of these new tools offer features and benefits that can improve accuracy, double check your books against your bank accounts, automate certain tasks, and reduce the amount of time spent on accounting and bookkeeping.
When you hire a third-party bookkeeper for your business, they will likely make greater efforts to stay abreast of new accounting software in order to ensure the highest accuracy and utmost efficiency for your business’s accounting tasks. This gives you all the benefits of the latest tools without having to learn to use a new system yourself.
Speaking of accuracy, hiring a CPA firm to handle your business accounting needs will always offer you greater accuracy in your company’s financial records. As a business owner, you have a lot on your plate, and your attention is necessarily divided among various important tasks for running your business. Plus, while you may be a jack of all trades, you likely don’t have the specific training that CPAs are required to receive, much less the ongoing education they receive to maintain their licenses.
With this niche knowledge and education, a CPA is always going to be more accurate and efficient when maintaining your company’s books. They are specifically trained to catch the smallest errors and ensure that your company finances are meticulously maintained at every turn. This accuracy is invaluable if you’re ever require to review your business’s financial records for any reason, and can even help you in making financial decisions for your company.
Better Allocation of Resources
Up to this point, we’ve spoken primarily about trying to handle your bookkeeping yourself. But what if you have an in-house bookkeeper? Is it truly better to hire an outside CPA firm? In these cases, the answer usually comes down to efficient resource allocation. Most small businesses simply don’t have enough tasks to occupy an in-house accountant full-time. This means there are times that you’re paying someone to sit in a chair.
It is quite simply a better allocation of your company’s finances to outsource this task to a CPA firm that can handle your accounting needs without you paying for any unproductive hours in the office.
Avoid Conflicts of Interest
Finally, it is vital that you’re aware of the potential legal issues involved in maintaining your own books. Any time a business owner acts as his or her own accountant, there is reasonable doubt in whether or not those books are being properly maintained. If an error of inconsistency ever arises, there is bound to be scrutiny into whether it was a simply mistake, or an intentional misrepresentation of the company’s finances.
Even when it is a simple mistake, this conflict of interest can lead to distrust between business partners, clients, and investors alike, which can have a serious negative impact on your business. Even if no legal action is ever taken (which is always a possibility), that loss of trust alone can destroy a business. But when an impartial third party maintains the books, this conflict of interest is entirely removed, and your company is protected from such scrutiny and ramifications.
If you’re ready to stop going the DIY route with your bookkeeping, contact us, and we’ll show you how our accounting services can benefit your business.
Camputaro and Associates
Certified Public Accounting Firm
136 N. Orchard Street, Suite 8
Ormond Beach, FL 32174