How Small Business Solves Big Accounting Problems

In addition to making their products and services valuable and attractive to customers, small business owners must also work at sales, marketing, networking and managing. Yet all of these elements do not guarantee business success.

The key ingredient that determines whether an owner will be able to start a business and run it in a profitable manner is the ability to make informed financial decisions in an accurate, timely fashion. Most owners do not have the extensive training and knowledge to make these decisions, nor have the budget or need for an in-house accounting department.

Small to medium business owners must ask themselves if they have the time to:

  • Maintain accounting records after working 10-15 hour days.
  • Set up, select and computerize an accounting system.
  • Deal with filing and processing payroll.
  • Reconcile bank accounts and actively monitor cash balances.
  • Possess the expertise to code expenses, assets and other income to provide a CPA with information to prepare tax returns at year end
  • Prepare financial information to monitor trends, profitability, cash balance and accounts receivable.
  • Hire and train a bookkeeper to run the financial aspects of the business.

A "No" answer to any of these questions indicates that the business may derive significant benefit from outsourcing their accounting function.

The Outsourcing Option

Successful businesses utilize experienced outsourcing services as an innovative, cost-effective way to bring top professionals "in-house." Outsourcing significantly reduces overhead while maintaining and often exceeding the level of quality personnel they can afford to hire.

Outsourcing allows business owners to:

  • Concentrate on what they do best: generate revenue and grow your business.
  • Significantly reduce the cost of maintaining an accounting department, and save on:
    • Salary and payroll taxes
    • Employee benefits
    • Unemployment costs
    • Costs associated with recruiting, hiring and training.
    • Paying sick and vacation time.
    • Overhead costs to maintain staff (rent, supplies, equipment, furniture)
  • Increase the level of quality, expertise and experience associated with your financial reporting function, gaining an unbiased perspective.
  • Employ a dedicated Account Team.
  • Reduce the impact of employee turnover at your organization.
  • Gain access to the outsourcing company's network for services and potential revenue enhancements.

When choosing an outsourced accounting firm, look for a company that has the expertise to offer guidance as well as accounting services, has certification and a strong background in the software that they utilize, and takes responsibility for their work.

Engaging the services of an outsourced accounting firm can afford you the time to concentrate on what you do best: running your business and generating revenue.

Author's Bio:

Ed Becker is a licensed certified public accountant in both New York and Massachusetts and a member of the American Institute of Certified Public Accountants, the Massachusetts Society of Certified Public Accountants, and the New York State Society of Certified Public Accountants. He is the president of OutSource Your Books (OSYB), which provides professional outsourced bookkeeping and accounting services to emerging, small and medium-sized businesses. Contact OSYB at (516) 465-0508 ext.5620 or email mail@osyb.com.