Simplifying The Numbers Game With Outsourced Accounting

Accounting — the word alone can have you instantly overwhelmed, especially if you’re a small business owner or an entrepreneur trying to navigate the complex world of finance management. If you’re not a numbers person, the idea of balance sheets, ledgers, and receipts can send you in a spiral. But don’t let that bring you down for there’s a solution to this numeric dilemma: outsourced accounting.

What is outsourced accounting? 

Think of outsourced accounting as your fairy godmother in this numeric voyage. It entails hiring a team of numbers-crunching wizards who have aced the right mix of spreadsheets, taxes, and budgeting so you can do what you do best — grow your business. 

These external professionals or specialized firms handle your financial management, including tasks like bookkeeping, tax preparation, payroll processing, and financial analysis. It simplifies your economic life, streamlines your business operations, and ensures that your financial records are accurate and up-to-date while saving you time and money. Plus, these spreadsheet-calculating wizards don’t require a physical office space. They can be the ultimate solution if you need a finance team without wanting to spend too much on resources. 

But why should you outsource?

You might think, “Why outsource my accounting when I can do it myself?” Of course, you can, but as a business owner, you must be smart about what you take on yourself and what you outsource.

If you opt for outsourced accounting services, you won’t have to worry about tracking expenses, reconciling accounts, or dealing with tax season stress. Your energy and focus can be on things that matter more — like scaling your business. Sure, if you’re a finance wiz, tackle your accounting. If not, though, outsourced accounting can be a true blessing. 

Outsourced accounting firms also come with an army of experts who know the turns and curves of the financial world. They can provide valuable insights, help you adhere to financial regulations, and keep your books tight. Plus, it’s more cost-effective than hiring a full-time company accountant, saving your business a boatload of money.

If these reasons are insufficient, let’s further break down the benefits of having outsourced accounting and finance at your fingertips. 

1. Scalability 

You control the scalability of outsourced accounting services depending on your business needs. You’re not stuck with fixed costs when your business experiences periods of profit or loss.

2. Reduced risk 

Financial compliance and tax regulations are complex and constantly keep changing. When you hire outsourced accounting for startups, they stay on top of these evolving regulations, ensuring your business remains compliant, which reduces the risk of financial errors or penalties.

3. Improved accuracy 

Accounting professionals are absolute ninjas at drawing up accurate financial records. Their expertise reduces the risk of errors, and their systematic approach keeps your financial data clean and easy to understand. 

4. Technology advancements 

Outsourced accounting firms are adept at using cutting-edge accounting software and technology to streamline processes and improve efficiency. Employing experts using the latest tools and technology can give you the best results without the hassle of managing them yourself.

5. Enhanced security 

Reputable firms invest in tight-locked data security measures. Ensure your company’s outsourced accounting solutions safeguard financial information against data sharks and unauthorized breaches. 

6. Timely reporting 

Outsourced accounting teams are experts at providing timely and up-to-date financial reports, ensuring you have the correct information to make game-changing decisions.

7. Reduced stress 

Business accounting for startups can significantly reduce the stress of managing your finances. Tax season, audits, and financial reporting can be a breeze when you have experts to fall back on.

8. Customized services 

You can tailor the outsourced accounting solutions you receive to meet your company’s needs. Whether it’s basic bookkeeping or more comprehensive financial analysis, customize the services you need.

9. Business continuity 

Outsourced accounting teams can provide continuous support, even in unmanageable scenarios, such as employee turnover or sudden leave.

Choosing the right team

Even if you are sure about outsourcing business accounting for your startup, how do you pick the right team? These teammates will ensure you ride the financial rollercoaster as comfortably as possible. Assemble your squad keeping the following in mind: 

Experience

Pick firms or professionals that demonstrate a compelling record of success. Interview their references and study their firm. Remember, knowledge is like fine wine; it gets better with time.

Services offered

Different firms offer different outsourced accounting services. Some may focus on tax preparation, while others provide a complete financial menu. Pick the one that aligns with your business needs. 

Technology savvy

A good finance team must be tech-forward in the digital age. They should be well-versed in accounting software and have secure systems that protect your financial data.

Communication

Like any good relationship, when you speak, the other person should listen, and vice versa. Communication between your team and the outsourced accounting team should be on point to ensure quick turnaround. 

Cost

While outsourcing is generally softer on the pocket, it’s essential to understand its pricing structure and ensure it aligns with your company’s budget. They’ll help you save money in the future, so make sure you get the best deal. 

The magic of cloud accounting

In the old days, accounting was about a mountain of paperwork and surfing the numbers with just a calculator. However, the cloud accounting revolution has made things more straightforward and convenient. 

Cloud accounting is backing up all your financial data securely in the cloud, accessible from anywhere with WiFi. Your outsourced accounting team can update records in real time, and you can check your company’s financial health with just a click. 

The four stages of outsourced accounting

Outsourced accounting can be split into four strategic stages:

Setting up

In this first stage, your accounting team waves the magic wand to set up your financial system. They’ll tailor it according to your business needs.

Daily wizardry

Once all systems are a go, it’s time for the everyday hustle. Your accounting team will stay on top of your day-to-day transactions, from recording expenses to processing payroll.

Monthly review

Like a medical check-up, the third stage thoroughly reviews your business’s financial health. Any discrepancies or anomalies will be solved, ensuring your finances stay rock-hard.

Year-end spells

The year-end is like the movie’s climax, where your accounting team gathers the year’s financial records and prepares you for tax season. No more looking for receipts in odd places and panicking about tax deadlines!

The power of outsourced accounting

Accounting businesses don’t just make numbers nifty; they empower your business to make decisions fearlessly. With a team of financial experts on your payroll, you can make informed decisions, plan for growth, and keep the taxman far from your company. It’s like having a financial godmother watching over your business 24/7 while you focus on making your dreams a roaring success. 

Want to know more about startups and what it takes to get started? Since 2006, Escalon has helped thousands of startups get off the ground with our back-office solutions for accounting, bookkeeping, taxes, HR, payroll, insurance, and recruiting — and we can help yours, too. 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.