To ensure success, contracting and subcontracting companies need accounting professionals responsible for managing cash flow, budgeting, bank reconciliation, payroll, financial reporting, and other accounting functions. For many small and medium companies, the workload may not require full-time staffing or competent professionals may be too expensive.
An alternative to hiring in-house staff is to outsource all or a portion of the accounting department, which offers a variety of benefits you may not even have considered.
Here are some of the top reasons to consider outsourcing to an accounting services team:
1. Cost savings
A full-time employee can cost significantly more than an outsourced accounting professional yet deliver a product of similar or even lesser quality. In addition to annual salary, costs of in-house employees include training, payroll taxes, health insurance and benefits, software and technology, and so on. Working with an outsourced accounting professional provides you with greater cost control, as you can scale up (or down) the level of services and reporting. Finally, it is important not to overlook the cost of a financial mistake, which can cost much more than having the job done correctly the first time. Outsourced accounting professionals work with clients across different situations to accommodate their specific needs and can apply this experience as needed.
2. Technology expertise
In today’s fast-paced digital environment, it can be challenging to stay on top of all the emerging tools and technologies available to help you harness time-saving opportunities. You’re busy keeping your company moving forward after all. When you rely on the accounting expertise of an outsourced provider, you have also committed to professionals who possess an advanced understanding of the options available to you and will share them with you from the start and throughout an engagement. Some outsourced accounting professionals secure certifications to better reflect their familiarity with online technologies that can improve workflow, accounting management functions and digital invoicing capabilities. More efficient and convenient workflow frees up your time which can be redirected to management and growth of the business.
While the choice of which tools and processes you use will always be yours, outsourced accounting team members can help you make the best choices given the broadest array of technologies available on the market at a reasonable cost.
3. Problem-solving capabilities
When your accountant works in-house for a single organization, they may not understand how other companies are handling the challenges and obstacles your business faces today. An outsourced group familiar with other businesses in the industry will know approaches that they have taken to job costing or cost reporting, to use some examples. Bringing that expertise and technical knowledge to your organization (assuming it will not violate intellectual property laws or other legally protected information), can significantly benefit problem-solving options for your contracting business, as well. Occasionally, your business faces unforeseen circumstances. It benefits your business to have as your professional partner an outsourced accounting team that has broad experience in your industry.
4. Expertise in tax and other areas
One of the most significant benefits of working with an outsourced provider of accounting services is their knowledge and experience in taxation and other areas that affect your profits and cash flow. CPA providers possess the understanding, or have access to such knowledge within their firm, to navigate and leverage complex tax rules and develop a winning strategy. When you invest in an outsourced professional to manage specific accounting and reporting back office tasks,you may also simultaneously benefit from additional areas of professional expertise at no extra cost. By becoming familiar with your operations, your outsourced provider is positioned to make recommendations that strengthen your operating practices, even in areas in which you did not anticipate.
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How you run your business is up to you. But without solid accounting practices, profits will suffer and your time will be spent on less valuable tasks. Outsourced accounting professionals can partner with your contracting business, especially those that already have years of experience working throughout your industry. The depth and breadth of their professional expertise, the problem-solving and cost management benefits they provide, and the technology knowledge they offer can help your business move forward at a quicker and more profitable pace than you imagined.
Make sure to consider this opportunity now.
Councilor, Buchanan & Mitchell (CBM) is a professional services firm delivering tax, accounting and business advisory expertise throughout the Mid-Atlantic region from offices in Bethesda, MD and Washington, DC.
