The market for small businesses is growing at an exponential rate, creating a competitive environment for owners. According to Bloomberg Business1 only twenty percent of entrepreneurs that have startup companies succeed after passing the 18 month mark. Small business owners need to focus on opportunities that are going to encourage success. Outsourcing enables companies to be more proficient, more effective, and reduce costs to gain a competitive edge in their market.
Reduce Overhead: There are many costs associated with hiring an in-house accountant, from payroll to healthcare benefits. There is always the business risk of countless dollars spent on inefficient labor. Outsourcing your back office allows you to budget your accounting costs and focus on the essential task of business development.
Save Time: Time is a small business owner’s most precious commodity. Do not use this scarce resource recruiting and training an individual when that time could be spent on maximizing strategic business goals. Hire a CPA firm that specializes in back office support to streamline your productivity.
Scalability: Small businesses need the flexibility of being able to pivot on a moment’s notice. Outsourcing creates a simple environment for increasing or cutting back on operating expenditures instead of hiring and firing employees. Accounting firms are built to provide the client with optionality in order to navigate the cyclic nature of their business environments.
Knowledge: While third party bookkeeping can provide a business with a plethora of knowledge and resources within the accounting world, it can also provide another invaluable asset, unbiased opinion. An outsourced accountant will be impartial and provide more logic based guidance as a trusted advisor.
Fraud Control: According to an article in the Journal of Accountancy2, small businesses with less than one hundred employees are three times more likely than larger companies to experience internal fraud. This number is due to multiple factors including a lack of review processes and controls. It is difficult as a small business owner to watch every financial transaction that takes place in his company. Allowing your company’s financial review to be handled by a CPA creates a stable environment and reduces the risk of fraud.