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  • Writer's pictureJoe Minich, CPA

7 Reasons to Outsource Your Accounting

Updated: Mar 8, 2022

Joe Minich, CPA

Are you looking for ways to free up your time so you can focus on growing your business? Accounting services are one of the most cost effective functions any small and medium-size business could consider outsourcing. Champion businesses in every industry are understanding the value in working with outsourced professionals, and these services are highly scalable, from bookkeeping up to full-service Virutal CFO's. Let's take a look at a few of the reasons this approach makes so much sense.

1) Cost. Finding money in a budget can be tough. Compared to on-staff accountants, however, outsourcing is a no-brainer. We've seen numerous examples where businesses saved over 50% by outsourcing their accounting needs versus doing it internally.

2) Efficiency and scaling. Accounting is not a steady-state endeavor. The work ebbs and flows. Month close is a heavy lift, for only a few days every month. Payroll only demands much attention every couple weeks. Most companies aren't cutting checks every day. The in between times can be tough to fill with meaningful work. There is a good chance bringing on an employee is going to result in paying that person to do nothing a lot of the time. Just outsource it and pay for the actual value of the services you are receiving.

3) Quality. Accounting firms are talent multipliers. For a fraction of the cost of one mid-level employee, you can leverage the structure of an accounting firm. There they will have different staff levels working on your account based on the complexities faced. There are review and quality control processes that are impossible to achieve in-house. You get to leverage the extensive knowledge network of high level CPA's for a fraction of the cost of hiring one. It's cheaper and better quality, a true win-win from a value perspective.

4) Redundancy. Firms cross-train employees so they can continue to provide services uninterrupted when backup is needed. If you hire someone, are you equipped to do that? Probably not, you'll be scrambling to hire and train another person when that one leaves.

5) Rid yourself of headaches. When we talk to business owners, managing, coaching, and leading employees frequently is that one big thing that keeps them up at night. Outsource your accounting and it's one less potential headache you have to worry about.

6) Repurpose your time. Opportunity cost has crushed many a business. Accounting is not a revenue-producing function, yet it can produce ROI. How is that even possible? It all boils down to decision making. Without good numbers, you can't make good decisions. With bad numbers, your business is like a ship in a sea of icebergs. Maybe you haven't hit one yet, but you will eventually. Every minute you spend working on your books is a minute stolen from somewhere else. Best leave it to qualified experts, who know your industry inside out, to help you with tracking results in real time. You can steer the ship through the fog. You can focus on the operational side of the business.

7) Risk mitigation. One-person accounting departments are a fraud prevention nightmare. Accounting firms have systems and controls in place designed to prevent and detect fraud. Just having that second set up eyes, someone independent, looking over your books is a good step toward mitigating fraud and security risks.

Contact Joe today to discuss if Ridgeline might be the best accounting solution for your business:

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