Outsourced accounting is a very feasible, and often times, recommended, practice. The only problem: Some people don’t like the idea of sharing vital company information with an independent firm. There is usually a lack of trust on the organization’s end, or simply a lack of understanding of how an accounting firm can provide great value.
Most organizations that refuse outsourced accounting services base their decision on false information. Many times, they’re unsure exactly what they’re refusing, but because it involves an independent firm, it’s considered risky.
This post explains how outsourced accounting really works, and puts some of those false rumors to rest.
Myth 1: Outsourcing Destroys Internal Systems
Some organizations think that handing the financial reins to someone else means losing control of their finances. It doesn’t. They believe giving up in-house control is the first step towards financial turmoil. It’s not. Giving up control, and letting a professional firm handle your accounting, is actually one of the smartest things your organization can do. You gain an outside perspective on processes that may have evolved organically over time, but may not be the most efficient or effective process for your organization. You gain accounting expertise and access to best practices that will bring greater control and stability to finances.
Outsourced accounting not only provides a neutral, third party perspective, it prevents employee theft. Most independent CPA firms work with you online, and give you daily updates on your financial status.
Myth 2: Outsourced Accounting is Too Expensive
Maybe trust has nothing to do with it, and you avoid outsourcing simply because you think you can’t afford it. Look at the budget and resources you currently have allocated towards accounting in-house and compare it against the investment of hiring an independent CPA firm. Don’t forget the extra costs of other salary factors, like employee benefits and payroll taxes.
Myth 3: Outsourcing is Just Unnecessary
You’re a small organization, but you have some big tasks. There is no shame in admitting you may need help with possibly one of the toughest departments within your organization. Accounting is no easy task. Besides, how many other things could you be doing in the time it takes you to organize your finances? Think about the future betterment of your organization, and leave financial conflicts to a CPA firm.
When you are considering hiring an independent CPA firm, here are some things to look for:
Security – Make sure you’re dealing with a reputable firm. You want to ensure safekeeping of all your files and proper, continuous maintenance of your internal controls. When you find a firm you trust, rest assured, they put the right systems in place for absolutely impenetrable security.
Saved Time – Your goal is to get your business in proper-working order, but it’s not your only responsibility. Your main focus should be establishing and achieving the vision of your organization, not constantly tweaking various processes. With outsourced accounting, you focus more on your business as a whole, and are able to leave accounting specifics to the CPA firm.
You are in charge of running your organization. When you use independent accounting services, you are better able to do this. Just like any process in the business world, there are plenty of misconceptions about outsourced accounting. Don’t let these myths lead you down the wrong path. Outsourced accounting gives you more time and money to focus on overall business goals.
Want to learn more about the business benefits of outsourced accounting? Click the button below to start the conversation about your organization’s financial future with LBA Haynes Strand: Certified Public Accountants who truly care about the success of your business.