Why Should Small Businesses Consider Outsourcing  Their Accounting Function

Small businesses play a major role for the U.S. economy. They help promote innovation, economic activity, and job creation. For small businesses to continue growing and prospering, they need to focus on their core activities, such as sales goals and customer service experience. Outsourcing the accounting function is one way small businesses can better focus on core business. Here are some benefits of outsourcing the accounting function:

1.      Cost Savings:

·         Personnel Costs: Outsourcing can significantly help in reducing fixed personnel expenses, such as salaries, benefits, and training. By eliminating the need for an internal accounting team and outsourcing this function, small businesses will only pay a variable fee based on the level of accounting services needed.

·         Technology Costs: Small businesses can save money on these costs, as the outsourced accounting team will use their own technology and software.

·         Office Costs: By outsourcing the accounting function, small businesses will save money on rent, insurance, and utilities expenses.

 

2.      Risk Management:

·         Compliance: Outside accounting experts will continuously monitor changes in laws and regulations, which helps ensure small businesses stay in compliance with the current financial and tax requirements.  

·         Internal Controls: An external accounting expert can help with risk management by implementing appropriate internal controls and procedures to detect and prevent fraud.

·         Contingency Planning: An outside accounting team can assist in developing contingency plans for small businesses to prepare for unforeseen events.

 

3.      Insights into Financial Data:

·         Benchmarking: Outside accounting firms have experience across multiple sectors and can provide relevant benchmarking data, allowing businesses to compare their performance against the industry.

·         Tax Optimization: An outside accounting team can assist with tax planning, identifying optimal business structuring, expense tracking, and timely filing.

·         Cash Flow Management: Experts can help manage cash flow, ensuring that businesses have sufficient liquidity to support day-to-day operations and invest in growth opportunities.

If you have any questions or if you are looking for an external accounting firm to help your business, CFLG is here to help. Contact us at (305) 662-7272 or email us at info@cflgcpa.com