Here are a few compelling reasons to dump Quickbooks in favour of professional outsourced accounting services for your business.
Let’s face it: in the business world, accounting has a reputation for being a dull subject. If you're a small business owner, you’d rather discuss your products and services than your accounting debits and credits unless you work in accounting.
As a small business owner, you’ve undoubtedly kept a close eye on expenses, knowing that it’s your responsibility to keep costs low. You might have even done your own bookkeeping in QuickBooks or glanced over your bookkeeper’s shoulder to keep an eye on the books.
Why, if it’s such a dull activity? Because astute business owners recognize that accurate and timely accounting is not just a necessary evil, but also a necessity for their company’s survival.
Most entrepreneurs, however, learn that their time is better spent on other things as their business grows. It is a better use of time to concentrate on growing the primary business rather than handling day-to-day bookkeeping. Outsourcing accounting services makes a lot of sense in this situation.
When a business owner can no longer be involved in every aspect of the firm, it requires more than just bookkeeping and basic accounting software, which are maintained by whoever has the time. A growing company not only requires, but also deserves, a formal accounting department.
When Is It Time to Move from Bookkeeping to Accountant Services Outsourcing?
In the growth phases of a company’s development, a bookkeeper or bookkeeping software will not be able to deliver what a business owner truly requires: management accounting.
When a bookkeeper is no longer sufficient and managerial accounting is necessary, a small business or nonprofit organization has reached a point in its life cycle where accounting becomes a more exciting topic of discussion.
We’ve noticed that unsatisfied business owners who have a “getting better” perspective see accounting outsourcing as a way to quickly graduate to managerial accounting. They see outsourcing as a competitive advantage that allows them to be the best in class without having to commit significant time or money upfront.
Still not convinced? Here are a few compelling reasons to dump Quickbooks in favor of professional outsourced accounting services.
KEEP YOUR FOCUS ON YOUR PRIMARY BUSINESS.
Most businesses and non-profits do not have accounting as a core competency.
According to most business management experts, any function that diverts workers and resources away from making money and is not related to your company’s core expertise should be outsourced. As a result, outsourcing accounting frees up management time to focus on areas of the business that promote sales, service, and, ultimately, profit.
ELIMINATION OF IN-HOUSE BURDENS
Using other people’s resources (OPR) instead of employing, training, and managing extra accounting employees can save a company time and money.
As a new manager, you’re already dealing with a lot of human resources issues. Hiring and keeping staff is a lot more difficult than many people expect, especially if they’ve never done it before, with all the financial hassles that come with it, especially when it comes to taxes.
Business owners that are focused on strategic growth do not want to add to their workload by managing an accounting department. As a business owner, your first responsibility should be to focus on the people who make money, rather than on accounting.
While outsourcing accounting is frequently the next step for growing organizations, it can also benefit fully funded start-ups. This is because these start-ups need a scalable accounting platform right away and are frequently required to provide corporate operating plans to their stakeholders ahead of time.
ON-DEMAND EXPERTS
One of the most significant advantages of outsourcing accounting is access to accounting and business technology expertise. As accountants, we have been educated on how to apply best accounting practices and create systems and tools that connect financial data across the organization.
Outsourced accounting specialists, like us, strive to stay current with new technology that can benefit your business. We devote time and resources to ongoing research, training, and technological advancements, all while keeping your business in mind.
COMPLIANCE VS. RELIANCE
Outsourced accounting services enable reliance by providing financial knowledge you can trust to make smart financial decisions. Bookkeepers often focus on tax and audit compliance, whereas outsourced accounting services enable reliance by providing financial knowledge you can trust to make smart financial decisions. Compliance guarantees that all required duties are accomplished. Reliance provides you with actionable financial insight that allows you to make data-driven decisions.
One of the most important decisions a business owner will make is pricing. This decision is made every time a proposal is sent out the door, and it may make or kill a company.
If your accounting is entirely focused on compliance, you won’t have visibility into profitability by customer, job, or marketing budget. If you don’t know who your most profitable clients are, how do you know where to focus your sales force or where to direct your marketing dollars? You’ll need a full-service accounting firm that can ensure both compliance and reliability.
PEACE OF MIND
Accounting is best left to a team of accounting experts who can ensure that a company’s financial data is accurate and of high quality. This peace of mind frees management to focus on sales, client relationships, and building the company’s value rather than accounting.
INCREASED OPERATIONAL EFFICIENCY
Outsourced accounting can help your company or nonprofit improve operational efficiency. To begin, the outsourced accounting team will design and implement a financial system that combines automation and integration to improve financial reporting.
Second, automation allows you to spend less time working and more time working on your business by speeding up operations. Time and expense tracking, as well as labour cost allocation, can all be automated, making life easier for your employees and helping you measure profitability more accurately.
Additionally, automating the billing and collection process saves time and money on invoicing while also enhancing cash flow through faster collection.
FINANCIAL INTELLIGENCE
With more accurate knowledge, it is always easier to make better decisions. A business owner who keeps a close eye on the finances of their organization is better prepared to drive it forward by answering questions such as:
- Is the price I’ve set for my job accurate?
- For me, who are the most profitable customers?
- Do I need to hire more people? How much should I pay them if that’s the case?
- What should I do with the money I have set aside for marketing?
- Is there enough money in my account to pay my employees?
This degree of skill is difficult to get with a regular bookkeeper. A business owner needs outsourcing accountant services to properly answer these questions and make strategic decisions that affect profitability.
Wrap Up
At Filing Taxes, we specialize in a type of outsourced accounting service that our clients love, and we believe you will as well. We supply you with everything an onsite team of specialists would, and we’re just as invested in your success as you are, but we don’t take up office space.
We act as your accounting department, as well as financial counsellors, and offer other services too. Not only will this save you time and money—and keep you on the right side of the tax office—but it will also give you an advantage over your competitors.
We help high-potential entrepreneurs in creative industries be successful without the stress and yawns of traditional financial management. We are the strategic voice for growth and the daily doers of the stuff you don’t want to do. Soup to nuts—we've got you covered, all for a fixed monthly fee. all backed by many years of experience working for firms just like yours. Filing Taxes is a reliable accounting service provider to small and medium-sized businesses with clients from all over Canada. Feel free to contact us through our website filingtaxes.ca or reach out at 416-479-8532. Schedule your tax preparation appointment with us and take the first step towards proper management of your finances. Our professional personal tax accountants will make sure to get you the maximum tax refund on your personal tax return.
Disclaimer:
The information provided on this page is intended to provide general information. The information does not consider your personal situation and is not intended to be used without consultation from accounting and financial professionals. Salman Rundhawa and Filing Taxes will not be held liable for any problems that arise from the usage of the information provided on this page.