As a company grows and evolves, business leaders and key personnel may spend more and more time devoted to bookkeeping and accounting activities than they would prefer. Some small business owners spend more than half their time managing the company's finances.
Hiring a controller and dedicated accounting staff can get expensive. But, failing to proactively keep a watchful eye on cash flow and other financial health indicators is risky. To mitigate risks, you might consider outsourcing accounting services. Not sure if outsourcing is right for your company? Here are five reasons to consider onboarding a remote booking and accounting team to help you manage your financial activities.
Leveraging Outsourced Accounting Services to Enhance Security
While almost two-thirds of small businesses (64%) have been internal theft victims, less than 20% report theft or pursue remedial action to recover losses. According to a study overseen by University of Cincinnati student Jay Kennedy during his criminal justice doctoral period, there are a number of reasons why 84% of victimized business owners choose not to file a police report.
- Even if you prove your case in court, it will be expensive and the court may allow minimal restitution payments, which could mean the criminal is given twenty years or more to pay back the money stolen.
- Emotional connections to long-time employees guilty of fraud and theft often mean that an employer feels hurt more than victimized. The employer may just want to get beyond the violation as quickly as possible, without added stress to the firm or the worker.
- Business leaders may have a lack of confidence in the local law enforcement and judicial systems to arrest and successfully prosecute the offender.
- Filing a small value theft report may not seem worthy of the time invested. Kennedy's research showed that internal theft values ranged from less than $10 to more than $2 million, with the average cost to the business around $20,000.
An outsourced accounting services partner has the skills and technical resources to spot transactional errors and intentional fraud through monitoring and audits. An outsourced service provider like AccountingDepartment.com can also recommend fraud protection strategies to reduce risks.
Saving Money With Outsourced Services
When budgets are tight and staff is limited, shaving dollars off the payroll spend is critical. It may seem counterintuitive to add another bill to the budget. However, outsourced services mean you have access to a full team of professional bookkeepers trained in your specific industry, without onboarding and training more in-house workers. Plus, expanding the workforce often means a significant reduction in payroll spending because no more time is wasted correcting human errors. Your company will never have to pay late fees or penalties because staff failed to get vendors paid on time due to a backlog of work.
Improving Time Management and Efficiency
As mentioned above, saving money is often about time management. When your company partners with a professional outsourced accounting services partner, improving workflow efficiency naturally follows. Key employees who “help out” with bookkeeping functions can return to focusing on their high-valued tasks. Invoice creation, receipt posting, vendor payments, and payroll checks are processed accurately and efficiently, cycle after cycle, with no in-house burden.
Accessing Skilled Accountants
Let's face it, sometimes you need the advice of a skilled accountant, even if your business is not ready to hire an internal CPA or controller. Having access to skilled accounts without paying high per-hour market rates gives one peace of mind that all financial transactions are being processed and recorded properly.
Gaining an Agile, Flexible Workforce to Meet Changing Company Needs
The final consideration is perhaps the most valuable for businesses that have periods of “feast and famine.” Having the ability to quickly scale up to current demand is almost priceless. Companies that would typically have to hire temporary workers when they experience seasonal volume increases no longer have to go through this chore. Outsourced accounting services are flexible enough to meet rising and contracting demand quickly and efficiently. Customers receive their bills on time. There is no additional stress on internal staff. Business leaders are amazed by how easy it is to monitor their financial health with more consistency and agility.
Are you ready to explore outsourced accounting services for your company?
There are myriad reasons beyond these five to consider outsourced accounting services. Our customers enjoy personalized, flexible contracts that include every aspect of bookkeeping and accounting transactions. Whether you only need a supplemental team to assist with invoice creation, a temporary partner to assume the role of CFO, or a full staff with specialized knowledge to take over everything, an outsourced accounting services team can help you with everything you need.
It is estimated that an astounding $100 million per day is lost to employee-related crimes. And, only a small number of perpetrators (4%) have a criminal conviction for prior fraud. And, most people who commit workplace theft hold authority positions. They may spend months or years working on their schemes, such as payroll and billing fraud.
Don't wait until you are the victim of employee theft or facing bankruptcy to learn more about the benefits of partnering with a remote accounting team. Learn more about outsourcing and client accounting services today by reaching out to AccountingDepartment.com!