If you’re an entrepreneur, you know how important it is to manage your finances properly. But what many business owners struggle to figure out is whether or not they should hire in-house accounting or outsource staff to do their finances.

We’ve been there, too. Making important decisions about the financial inner-workings of your hard-earned company is no small feat and one that many entrepreneurs struggle to demystify.

If you’re worried that outsourcing your accounting services may not be for you, consider this. Half of companies with the same management for the last five years or more contract their accounting work. Why? Because outsourcing accounting can positively transform your business.

Using a third party to take care of your finances can dramatically improve your business in 2022. Here’s how.

Benefit #1: Hire top-notch expertise

When you’re hiring a staff accountant or CFO, your goal is to get the best talent for the best price. But in reality, you’re limited. Costs, geography, size, and more all work against you when you seek the perfect internal candidate. That’s not the case when you outsource.

Professional accounting firms are comprised of teams of financial professionals, all of whom bring a special niche to the group. As a result, businesses that contract their accounting enjoy the depth and diversity of knowledge outsourced financial specialists bring to the table.

When you outsource, you gain expert advice from a dedicated team of accountants and financiers. So when an unexpected challenge arises or a new opportunity presents itself, you’ll benefit from the advice of this group as opposed to being boxed in by a single staff accountant or bookkeeper.

Benefit #2: Access innovative financial tools

The best talent uses the best tools. And when you contract your accounting, you’ll gain access to the latest and greatest financial software and programs.

If you aren’t outsourcing accounting, there’s a good chance you’re still using QuickBooks. And there’s nothing wrong with that! But most companies with an in-house accounting staff wouldn’t see the return on investing (ROI) in these software services, even though cutting-edge accounting programs often significantly improve processes and outcomes.

But dedicated accounting and financial firms do see the ROI of these tools because they help accountants work more efficiently and offer superior reporting and insights. Entrepreneurs who enlist the help of an accounting firm reap the benefits of the best tools.

Benefit #3: Low overhead costs

We know what you’re thinking. Top-tier talent, the latest and greatest accounting tools. These come with the highest price tag, right? Wrong.

In fact, contracting your finances is usually less expensive than hiring a staff accountant. Think about it. When you hire a bookkeeper, staff accountant, or even a CFO, you incur many costs.

The hiring process is usually costly, and once you hire someone, they need training. According to the Society for Human Resource Management, onboarding a single new employee costs more than $4,100. And once you hire them, you have to start paying their salary, bonuses, and insurance. The numbers really add up!

You don’t have to worry about this with outsourcing. No onboarding costs. No wages or hassles with insurance. Just a contracted fee that you agreed upon when you hired the accounting company. And usually, this is more affordable than hiring a staff accountant or bookkeeper.

There’s also some flexibility here. You can decide how much you’re willing to pay for accounting services and shop around until you find a company able to provide the right services at the right price.

Benefit #4: Save time

The more employees you have, the less time you have to do what you need to do to run your business. When there are people in the office, there always seems to be someone who needs something or has an idea they want to share. But that doesn’t happen when you’ve outsourced your accounting.

Contacted accountants aren’t as high maintenance as rank-and-file employees. They won’t interrupt you to say that the printer’s out of toner, and they won’t pop in to offer their opinions about the snacks you stock in the breakroom.

Instead, they use their superior technique and tools to quietly carry out your financial operations, getting in touch when they have a work product to share or need your guidance. And because of their expertise and fancy tools, they usually get the work finished quickly, so you get the financial data you need to make decisions even faster.

Benefit #5: Focus on your business

And what will you do with all that extra time? Focus on what matters most, growing your business.

When you’ve outsourced your accounting, let the financial specialists do what they do best, while you stay focused on what you do best, carrying out the mission and vision of your business. And with the information they provide, you should be well-equipped to make growth-driven decisions for your business.

The data gleaned by contracted accountants provides a critical glimpse into the financial health of your business. With this information, you’ll be able to determine whether or not your latest product launch was a success, if you can afford to hire more employees, and how ready you are for expansion.

Outsourcing employees not only makes your accounting functions run faster, they also run better, giving you everything you need to cultivate a successful business. Save time and money by contracting a few financial gurus to handle your finances.

Prime Ledger is here to help. Whether you’re looking for a bookkeeper, CPA, or a virtual CEO, we provide the financial services you need from people you can trust. So schedule a discovery call today, and let’s work together!