If you’re a do-it-yourselfer type or have a bookkeeper in your employ taking care of the company books, you’re probably thinking you have no need to outsource your accounting. After all, moves like that are reserved for much bigger companies – right? Actually, wrong. Even for small to medium sized companies, outsourcing accounting can uncover a good number of best practices that will help your company operate at optimum efficiency. For example, did you know that sometimes, following GAAP accounting procedures isn’t practical when it comes time to prepare your company’s tax return? Here’s why.
Accounting procedures differ for day to day bookkeeping than they do for filing income tax returns. For example, depreciation follows a uniquely different course on income tax returns than they do when following the rules of GAAP accounting. Having an accountant at your disposal who understands this can save a boatload of time during tax season – time that could be much better spent actually running your business instead of translating all of your calculations from GAAP accounting to income tax basis. For this reason, many smaller companies opt to follow what’s called OCBOA (Other Comprehensive Basis of Accounting) instead of GAAP when preparing their financial statements.
If this is news to you, it’s probably indication that you could use some professional help in your company’s accounting procedures. If this is news to your bookkeeper, consider it an even more pressing indication. Visit AccountingDepartment.com to learn more about the advantages of outsourcing your company’s accounting needs, including the various methods ofcommunication that will be available to you to confer with your dedicated accountant on a daily basis, even if that dedicated accountant just so happens to be on the other side of the country.
