Is it Time to Outsource All or Part of Your Accounting Functions?
Posted by: Brookside Admin
As businesses grow and evolve, business owners often find that tasks and job roles that began as responsibilities of staff members are now better served as being outsourced. That's often the natural evolution of accounting functions. Some business owners begin handling financial duties themselves, but quickly grow overwhelmed by the mounting responsibilities of their growing business. Others know going in that accounting isn't their expertise and immediately seek help. If you're considering outsourcing part or all of your accounting duties to a professional CPA, consider how well you identify with this list.
Lack of accounting talent
Perhaps the most obvious reason for enlisting outside accounting assistance is a lack of talent within your organization. This is easy to diagnose too. If you lack accounting expertise, and no one else on your staff currently is able to fill that role effectively, you're left with the choice of either hiring or outsourcing. In most cases, outsourcing is the cheaper alternative. Along with the cost of hiring and maintaining talent, there's also a concern over a developing skills gap that limits the amount of available accounting talent currently available on the job market.
In some cases, basic accounting functions are being easily handled by you and your staff until a change to regulatory compliance changes everything. These changes occur often and it's important that your business not only stay up to date, but stay ahead of them. That might mean hours of research weekly to stay in the know. Or, it could mean enlisting the help of a professional CPA who lives in that world and can help you plan for changing laws and regulations and stay compliant.
Data privacy and fraud
Depending on the size and structure of your business, it may take some significant changes to properly secure vital financial data. You could make that investment in both hardware and software, or you could outsource this data to a firm that's already set up securely. Similarly, in the case of fraud, transactions and audits conducted entirely inside your organization won't be as thorough as those conducted by an outside business.
Lack of timely information
A major function of your accounting department is the ability to tell you quickly about the current state of your business's finances as they relate to important decisions. If your books are unorganized, or accounting software isn't properly integrated with other business platforms, your business may not be able to move as quickly as is needed. Outsourcing can alleviate these issues by implementing more efficient processes and delivering timely financial information to you whenever it's needed. This not only helps you make decisions, but also helps to avoid developing disasters.
When your business is in need of accounting expertise, contact us at Brown Kinion and Company to speak with one of our experienced CPAs at offices in South Tulsa and Broken Arrow.