Research has shown that up to 40% of small business owners spend more than 80 hours of their time, every year, handling bookkeeping and accounting tasks. Yet rarely is this what excited them when they imagined starting their own business.
For business owners who prefer to spend their valuable time on other important aspects of running their company, outsourced accounting Miami offers them a convenient and dependable way to do exactly that.
Could outsourced accounting help you reclaim valuable time as a business owner? Let’s take a closer look:
What is outsourced accounting?
When you outsource your bookkeeping and accounting requirements, you’re handing some, or all of those functions over to an external firm, instead of hiring in-house.
Here are some popular tasks businesses opt to outsource:
- Bookkeeping – bank reconciliation, recording of daily transactions and managing accounts
- Accounts payable and receivable – managing invoices, tracking payments and following up collections
- Tax preparation and filing – preparing quarterly estimates and yearly returns
- Financial reporting – producing income statements on a monthly or quarterly basis, balance sheets and cashflow statements
- Payroll processing – calculating employee wages and withholding taxes, filing payroll reports
Is it time you considered outsourcing?
Although not every small business needs to outsource their accounting requirements in the beginning, there are some clear indicators that professional help might be needed:
- Working on the books is taking up too much time
Whether you’re categorizing expenses, entering receipts or chasing up invoices, any time that you or members of your team spend on these activities, could be better spent on tasks that have a direct impact on revenue.
- Mistakes are beginning to appear
What may seem like small, inconsequential errors in the beginning, may accumulate into bigger mistakes with the capacity to ruin financial statements, increase your tax bill, or even land you with penalties from the IRS. With proper systems and processes in place, professional accountants will prevent this from happening.
- Your company is rapidly expanding
When profits start to increase, it’s inevitable that the level of financial complexity you’ll have to deal with as the business owner, will also increase. From tracking inventory and keeping on top of a growing payroll, to meeting multi-state tax obligations and revenue recognition, more sophisticated accounting is needed as your company expands. With a team of outsourced accountants onboard, you can scale up with ease and not need to hire a full-time accountant, or accounting team.
- Tax season fills you with dread
If you’re on top of your bookkeeping and tax planning, even if you don’t necessarily look forward to tax season, there should be no reason for it to fill you with dread. However, with messy books and no strategic tax planning having been carried out, you may well have good reason to fear it each year. Working with outsourced bookkeeping and Coral Gables accountants on a year-round basis should turn tax season into a breeze, and could even help you reduce your tax liability.
If your business doesn’t generate enough revenue to justify hiring a full-time accountant (and doesn’t have overly complex, regulated accounting needs), but does make enough for outsourced accounting to be a worthwhile investment, then it’s probably something you should look into at the earliest.
For more time to spend on revenue-generating activities, less stress at tax time, and numbers that actually reflect your current financial status, outsourced accounting could be a convenient and cost-effective solution.
