October 11, 2016

The Value of Outsourcing Your Company’s Accounting

SEE ALSO >>> Outsourced Accounting Services

Those tasked with company management are often under stress to keep the business running profitably while exploring new areas of growth for the future. In business, the goal is generally to do better or make more than what was done during the same period last year. This approach means that managers need to stay focused on sales, new product or service development, managing employees and other administrative duties. Unfortunately, executives can become so focused on these strategic initiatives that the day-to-day tasks are often given less than optimal attention. The result of this in the case of accounting is typically late reports with inaccurate information. To help clients, prospects and others understand the value of outsourced accounting, Wilson Lewis has provided a list of reasons to consider it as a solution for your company.

• Reliable Financial Reporting – Late, inaccurate and unreliable financial reports are often a frustrating part of what leads business managers and owners to consider outsourcing. By outsourcing the accounting function, management will have access to timely and accurate financial reports that contain critical information needed when making strategic business decisions. Let’s face it, if the data used to make decisions about business operations and profitability are lacking, then resulting decisions will not be as effective as desired.
• Valuable Insight – Outsourced accounting professionals are able to offer valuable insight and advice that internal employees generally cannot. Because these professionals work with companies of all sizes and across various industries, they have a depth of knowledge simply not available to others who work with only one company. Best practices on software selection, accounting processes and procedures along with practical solutions to everyday issues are some of the benefits outsourcing provides.
• Reduced Administrative Issues – An important benefit of outsourced accounting services is that it eliminates the time and resources necessary to manage accounting staff. This benefit is especially potent for companies that do not have an internal accounting department. In this case, the challenge is not only creating and defining a position for a new employee, but in effect for a whole new department. New policies, procedures and job descriptions (at a minimum) must be created and implemented to govern the accounting professional and department. For those that have an internal accounting professional, the time investment needed to find, hire and train a new employee when there is turnover can be significant. By leveraging the outsourced accounting model these issues and related costs are eliminated.
• Scalability – As a company grows or experiences transition, an outsourced accounting provider is able to adjust the level of service offered based on these changes. This is a very useful benefit because it provides management with the level of service needed no matter their stage of growth. It eliminates the possibility that the company will incur costs for services that are simply not needed. This can be a concern for a company that experiences significant change after hiring an internal accounting resource.
• Comprehensive Cost Savings – Outsourcing the accounting function provides obvious cost savings in terms of employee salary and benefits. However, many don’t consider the other savings for those that outsource, including the cost of purchasing new software, software integration, training, office space requirements and other overhead expenses.

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Outsourced accounting offers many advantages that an internal accounting professional cannot match. The reduced administrative burdens combined with accurate and enhanced reporting make it a viable option to consider. If your company is considering an outsourced accounting model, then Wilson Lewis can help. For additional information, please call us at 770-476-1004 or click here to contact us. We look forward to speaking with you soon.