Most small to medium size businesses simply are not profitable enough to hire a full time CPA to maintain their accounting records. These companies primarily rely on poorly trained bookkeepers that could do their jobs properly, if they had the appropriate supervision. If your business falls into this category and your accounting records are nothing short of a disaster, you might want to consider using outsourced accounting services. Below you will find some of the ways that this type of operation can and will benefit your organization.
Accuracy – There are 1,000’s upon 1,000’s of accounting rules that must be understood at the highest level in order for a set of financial statements to accurately state a company’s present financial position. If your firm does not have a CPA or an controller that possesses a tremendous amount of experience, then almost assuredly your financial statements are not correct.
Each time a transaction occurs there is a debt and credit placed in the accounting system that must be recorded in the proper account. When a bookkeeper works for an outsourced accounting service they are supervised by a CPA and that allows them to ask questions whenever they are not sure of something. If you would like your organizations accounting records and financial statements to always be properly maintained, you should strongly considering using an outsourced accounting service.
Cost – Most small businesses at the very least employ one bookkeeper. Depending on the number of transactions a firm records each month, it is certainly possible that an outsourced accounting service could save you money while at the same time improving the reliability of your financial statements.
Accounting Information Systems – Most outsourced accounting services utilize extremely expensive and highly sophisticated accounting information systems. What that means for a business that uses one is they will have access to data and reports that most inexpensive out of the box accounting information systems simply cannot supply. In addition, these types of operations also employ state of the art servers and backup systems to guarantee that a firm’s information is never lost and is always accessible.
Taxes – Virtually all outsourced accounting services also provide every tax services a company will ever need, including high level tax consulting.
Fraud Deterrence – If you are reading this, more than likely you have read an article in a newspaper about a bookkeeper that embezzled thousands of dollars from the company they were working for. All outsourced accounting services have so many levels of internal controls in place, that this type of activity is almost impossible. When you turn your accounting records over to these types of firms in order for a check to be produced, at the very least, three different levels of management must sign off on it. That of course is far more secure than having a single bookkeeper being able to cut a check whenever they feel like it.
Outsourced accounting services are growing in popularity every year because of the some of the benefits mentioned above and many more that we were not able to cover. If you believe that your firm could improve its operations by employing an organization that provides these type of services, you might want to consider researching the matter more thoroughly.