What Is Outsourced Accounting and How Will It Benefit You?

August 17, 2021

What if your business could start saving time and money overnight?

As small businesses grow, their accounting needs also grow. But these businesses may not have the resources to implement an in-house accounting department.

The solution to this is to use outsourced accounting. Unfortunately, many businesses don’t know what account outsourcing is and how it will benefit them. 

Keep reading to discover what outsourcing your accounting can do for you!

What Is Outsourced Accounting?

Our guide is going to help you learn more about acccounting outsourcing. First, though, we need to answer the big question: what is outsourced accounting?

This refers to businesses outsourcing their accounting needs to an external firm. This provides a perfect balance between hiring your own full-time accounting team (which can be very expensive) or relying entirely on accounting software (which may not be as reliable).

Here are just a few of the benefits of outsourcing your accounting to a remote firm. 

It Saves (and Makes) Money

As you might imagine, some businesses hesitate to outsource accounting because they think doing so will be very expensive. The truth, though, is that accounting outsourcing can actually save your business money and even help you make money.

First, outsourcing is far cheaper than paying a salary and benefits to an internal team. Your business can’t go without accounting services, but you can go without paying so much for the services you need.

Second, every dollar you save from not paying that salary and benefits for your own employees is that you can invest in other areas. For example, investing more in marketing will ultimately help you generate additional profit.

Reduces Fraud Risks

No business is so small that it has no accounting needs. But small businesses tend to have only one or two employees who handle all of the accounting issues.

This is dangerous simply because it puts your company at risk of fraud. Imagine that you have one accounting employee…he may just be one bad day away from defrauding your entire business!

When you outsource, though, you get access to an entire accounting team. They can spot errors a single person might miss, all while providing additional transparency and accountability to reduce your risk of fraud.

Enjoy Peace of Mind

The final benefit of outsourced accounting is nice and simple: outsourcing can provide the peace of mind you’ve been missing.

It’s an open secret among business owners and managers that accounting is nerve-wracking. After all, major businesses have toppled because seemingly small errors regarding finances ended up bringing the company down.

When you outsource accounting, you have an entire team to help catch errors, record data, and analyze what the data means. Not only will this make your company more profitable and more efficient, but it will mean you no longer have to stress about accounting errors going unnoticed.

Your Next Move

Now you know what outsourced accounting is and what it can do for your business. But do you know who you can trust your accounting needs to?

Here at the CFO Network, we specialize in accounting outsourcing and so much more. To see how we can help your business grow, just contact us today!

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