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7 Services Your Outsourced Accountant Can Provide
Every successful business requires a reliable accounting system. A sound accounting system will effectively track a company’s financial standing. It also serves as a guide when making critical decisions, creating strategies, and measuring the growth of an organization.
Unfortunately, managing the accounting responsibilities of a business can be challenging for single business owners.
Exploring outsourced accounting helps take some load off you and allows you to focus on other crucial business activities like research, development, and marketing. In this article, we will explore other benefits of outsourcing your accounting needs and the seven core services of an outsourced accountant.
Benefits of Getting An Outsourced Accountant
The advantages of outsourcing an accountant or accounting firm are numerous. Here are some core benefits that you can enjoy by hiring your accounting needs:
- It saves operational costs. You can save on operating expenses by outsourcing your accounting functions, including staff salaries, office space, and other associated costs.
- You benefit from new technologies. Accounting firms often invest in new technology and experienced professionals who can provide valuable insights and advice. Outsourcing to such companies allows you to benefit from the latest technologies and techniques and get access to experts that you ordinarily wouldn’t afford to host in-house.
- You can increase efficiency. Outsourcing accounting allows you to focus on your core business functions and leaves the accounting to the experts. This way, you can be sure that your financial statements are accurate and up to date and that your taxes are filed correctly.
Knowing the outsourced accountant’s services is a challenge for businesses and entrepreneurs. The accounting services a business outsources are chosen based on the company’s specific needs, objectives, and requirements. Here are seven services that your outsourced accountant can provide.
- Bookkeeping Services;
- Accountant Receivables/Payables Management;
- Financial Statements and Reports Preparation;
- Controller Services;
- Financial Planning and Analysis;
- Tax Compliance and Reporting;
- Payroll Processing.
Bookkeeping is an essential part of running a business, as it helps you track income and expenses, keep tabs on your cash flow, store financial records, and prepare reports for tax time. Bookkeeping is the process of recording and keeping track of financial transactions.
When you outsource this aspect of accounting, you get comprehensive reports that increase the visibility of financial data. With this, you can make informed decisions based on your company’s financial data. An outsourced accountant can help with the following tasks:
- Balancing ledgers;
- Resource management;
- Invoice processing and outbound payments;
- Processing employee expenses;
- Financial resource management;
- Consolidation of multiple currencies and entities;
- Handling and procurement of e-payments;
- Subscription management and renewals;
- Set up a bookkeeping software .
Accounts Receivables/Payables Management
Accounts receivable (A/R) management and accounts payable (A/P) management are two important financial processes in any business. Accounts receivable is the money that is owed to a company by its customers, while accounts payable is the money that a company owes to its suppliers.
Both A/R and A/P management involve tracking invoices and payments, issuing payments, and maintaining records of all transactions. These processes are important in ensuring that a company’s financial affairs are in order and that it pays all debts promptly. Other services that the outsourced company handle include:
- Invoice approval;
- Invoice storing;
- Expense reporting;
- Order management;
- Customer billings and payments;
- Cheque processing;
- Order management.
You should never leave the preparation of your financial reports to inexperienced people. Instead, you should have a certified public accountant (CPA). Such a professional helps convert your expenses and earnings into financial documents for internal and external use.
These reports will help you to keep track of your financial situation and will be maintained by your outsourced accountant. You can share them with your shareholders, board members, or the general public. They can also track cash flow issues and quickly make informed business decisions.
An outsourced accountant will help you to manage your control accounts and grow your business. The role of controller services is to ensure that the company’s financial statements are accurate and up to date. They also oversee the company’s compliance with regulatory requirements.
An outsourced accountant will provide the following controller services:
- Compliance management;
- Employee and vendor communication;
- Audit reporting;
- Management reporting;
- Policy and procedures guidance;
- Cash flow analysis;
- Transactional processing oversight;
- Review of overhead expenses and cost-reduction methods.
Financial Planning and Analysis
To make the best business decisions, you need a comprehensive evaluation of your company’s financial position. Your outsourced accountant will provide resources you can use at any time to know your company’s financial situation. You can also access the financial data necessary to make critical business decisions. An outsourced accountant will also provide the following functions:
- Audit support;
- Financial data analysis;
- Board and bank reporting;
- Cash flow forecast reports;
- Data collection and interpretation;
- Planning, budgeting, and forecasting;
- Preparation of management reports;
- Investor communication and reporting.
Tax Compliance and Reporting
Tax compliance and reporting refers to the activities and processes required to ensure that an organization complies with all relevant tax laws and regulations. That includes complying with filing requirements, paying taxes, and reporting on taxes.
Tax compliance and reporting are critical to any business, as it helps ensure that an organization meets its financial obligations. It also helps to prevent penalties and interest charges from the government.
Outsourced accountants will also help to ensure you have an accurate and timely report for the Internal Revenue Service auditing. They also offer the following services as regards tax compliance and reporting:
- Franchise tax support;
- Payroll tax collection, filing, and payment;
- Reviewing financial statements for compliance;
- Tax planning decreases a company’s tax burden and minimizes risks;
- Federal and state laws on income tax return preparation for businesses;
- Tax assistance for collection, filing, remittance, and maintaining compliance with tax regulations.
Several situations may arise that require you to outsource your payroll processes. You may have had difficulties paying employees timely or been victims of fraud through their accounting systems and management.
An outsourced accountant ensures your books are ready early enough to pay employees when due. Also, your outsourced accounting team can examine your internal processes regarding finances and accounting.
Across the board
You can see your outsourced accountant can be fully accountable for the most common services. People often argue that an internal accountant can handle most of these services, but when considering cost and management, it’s clear how an outsourced accountant is beneficial.
Small businesses and entrepreneurs can have outsourced accountant care for these financial services. It will give you the time and headspace for growth.