Posted by Tasnim Ahmed
January 13, 2021 | 4-minute read (721 words)
Your startup is growing, and you need someone to handle not only your taxes, but also your financial projections and bookkeeping, but you don’t have the money to hire individual staffers to fill those roles. In this case, a CAS could be the best option for you.
What’s a CAS? Client accounting services (CAS) represents an evolving and fast-growing field, but many startups, small businesses and entrepreneurs aren’t sure whether they should partner with a CAS firm. Businesses that hire a CAS company have reported smooth business functioning, more profit and better financial acumen.
The primary objective of any CAS firm is to be a strategic advisor to your business, and offer customized services according to your needs, rather than just being tagged as an accounting and taxation service provider. CAS firms can offer a wide range of services such as:
- Bill payment,
- Processing accounts payable and accounts receivables
- Cash flow management
- Tax preparation
- Tax compliance
- Audits and reviews
- Financial reporting
- Outsourced CFO or controller services
- Data analytics
- Business advice
- Periodic regulatory compliance
- Succession planning,
- Mergers and acquisitions
Even though accounting is sometimes believed to be done in-house, CAS firms can track and manage your financial data just as efficiently. For instance, small businesses have been found to overpay their taxes when handling accounts on their own. However, CAS firms bring along the expertise to do the same job more qualitatively with a lower cost and increased profits. They even watch industry trends and changes to explore opportunities and identify red flags for your business.
If you are looking for more reasons to invest in this type of financial partnership, listed below are six benefits of outsourcing your accounting tasks.
1. Expert Advice
Partnering with a client accounting services firm means your finances are being handled by professionals with expertise, knowledge and skill. Therefore, you can switch from in-house accounting to a CAS firm at an affordable cost with a team of accountants working for you. They are even trained to provide you with accounting projections and solutions for your business. By leveraging their capabilities, you can gain a full spectrum of financial services.
2. Cost Savings
Outsourcing your accounting services can end up saving you money rather than being an additional cost. Entrepreneurs who hire an outsourced firm have the advantage of reducing business expenses without compromising the quality of work. You just pay for the actual work that they perform, and not for the salaries, office costs, taxes or the benefits that are involved when hiring a part-time or full-time employee.
3. Meet Regulatory Requirements
CAS firms are well informed on the latest compliance requirements. They are aware of the laws, processes and regulations involved in this field, which means you can rest assured that compliance is being handled without having to track all the latest accounting news. Your accounts are in the hands of highly qualified experts who closely monitor the market.
4. You'll Save Time
By choosing the right CAS business, an entrepreneur can focus and invest more time on business growth and strategy. With the help of the team, you can better manage the workload and delegate work responsibilities, while focusing on your business’ future growth. You no longer need to worry about accounting tasks, allowing you to commit your time to the responsibilities that allow you to grow your business.
5. You'll Get Daily Monitoring
With the team of experts dedicated to your account, you’ll be able to track and monitor accounting data and records on a daily basis. Whenever there’s a change in accounting rules, the CAS firm will work on it, keeping your accounts secure and accurate.
6. You'll Get Advanced Technology
In today’s world of rapid technological disruption, CAS firms use automation software and tools like Sage, QuickBooks, Visma, Xero, SAP and Microsoft Dynamics (to name a few). Small businesses cannot always afford these advanced accounting software packages, as they are typically very expensive, but an outsourced firm has access to all top-rated software in the industry. A CAS equipped with all the resources will help you save time and reduce the risk of errors and fraud.
Ultimately, business owners can concentrate on their core responsibilities that allow them to scale by handing their financial responsibilities to a CAS firm.