Managing your day-to-day finances is a critical aspect of running a healthy business, regardless of your company’s size, industry or expertise.
For small businesses, in particular, maintaining a firm grip on financial matters can feel overwhelming. And considering 64% of small business owners still manage their own books, it’s no wonder many owners struggle to balance their essential accounting tasks, juggle multiple responsibilities, and split their time and resources across dozens of business priorities.
Dedicated accounting support can be a smart next step for these overworked business leaders.
Dedicated accounting support refers to the specialized assistance provided by outsourced accounting and financial services companies. Typically, it covers the essential accounting and bookkeeping tasks required to keep your business running smoothly, like data entry, reconciliation, tax planning, financial analysis, audit support and payroll. But the services can be as customizable and unique as your business needs — or evolve as your company grows.
Having a dedicated accounting support team on your side significantly streamlines the financial processes of small businesses, helping leaders navigate the intricacies of accounting, bookkeeping, tax compliance, and financial reporting with efficiency and ease. Because by partnering with a dedicated accounting support service, your small business can benefit from the expertise of professionals who have the specialized knowledge (and available time) to help your business stay on firm financial footing.
If you’re on the fence about outsourcing your accounting — and working with a dedicated accounting support team — here are three reasons why it’s worth considering:
1. Dedicated accounting support offers a high level of expertise and accuracy.
Managing accurate financial records and maintaining strict compliance with ever-changing accounting regulations is overwhelming for even the most experienced business leaders. That’s where dedicated accounting support really proves its value.
Your dedicated accounting team has the specialized knowledge needed to keep your business fully compliant with accounting best practices, local and national tax regulations, international law and financial reporting guidelines. Your team stays up to date with the latest changes and regulatory updates, so you can be confidently compliant — and avoid costly missteps along the way.
In addition to mistake-free accounting, your dedicated accounting support team will also make sure your monthly close process and financial statements are completed properly. If your business struggles to complete your monthly accounting tasks in a timely manner, the benefit of having quick, accurate, real-time reports at the end of every month can be one of the best perks of outsourcing your financial processes.
2. Dedicated accounting support saves your team time and resources.
Every minute you spend on back-office tasks is a minute taken away from growing your business, serving more customers and developing new solutions. That’s what makes dedicated accounting support so valuable for time-strapped leaders.
Instead of getting bogged down in daily bookkeeping, financial reporting, tax compliance, and financial planning and analysis tasks, you can focus your energy on strategic planning, acquisitions, board management, fundraising and customer engagement. By shifting the burden from your back office to your accounting teams, your productivity is optimized and your resources are efficiently allocated.
Another way working with a dedicated accounting support team saves your business time and resources is in the hiring, training and management process. Bringing in a team of full time, in-house accounting and bookkeeping professionals requires significant HR effort and overhead. And managing that team can be another full-time job. Administering benefits and replacing your financial support professionals as your team turns over further drains your resources.
But with an outsourced dedicated accounting support team on your side, you can avoid the complications and overhead that come with in-house employees — freeing you and your team to focus on your core strengths.
3. Dedicated accounting support gives you access to financial insights and stronger decisions.
Dedicated accountants go beyond managing your business’ day-to-day transactions. They also analyze and interpret your financial data, providing the meaningful insights you need to make stronger, data-backed decisions.
Your dedicated accounting support team can generate critical financial statements, like income statements, balance sheets and cash flow statements, which serve as powerful tools for assessing your business’s financial health and overall performance. They can even help you recognize waste, reduce your expenses and maximize your growth opportunities.
So, should your business invest in dedicated accounting support?
If you and your team are spending hours every week entering financial data, sifting through reports, and worrying about tax and compliance issues, hiring a dedicated accounting support team can significantly reduce your back office burdens without breaking your budget. Or, if you have a small accounting team but anticipate growth in the coming quarters and years, bringing in an accounting team that supports your internal work — and prepares you to scale — can help your company avoid some of the growing pains that come with expansion.
The decision to work with a dedicated accounting support team is all your own. But if you’d benefit from stronger reports, faster processes, greater compliance and lower overhead, the choice is likely to be a clear one.
Want more? Escalon has helped over 5,000 companies across a range of industries to optimize routine business functions, like taxes, accounting, insurance HR and payroll, and operate more efficiently. Talk to an expert today.
This material has been prepared for informational purposes only. Escalon and its affiliates are not providing tax, legal or accounting advice in this article. If you would like to engage with Escalon, please contact us here.