Entrepreneurs across every industry share a number of character traits that make themselves, and their businesses, successful. From being relentlessly hardworking to maintaining a constant push towards innovation, running a company well requires a specific type of person and a specific set of principles. One of the more surprising and universal traits of an effective entrepreneur is undoubtedly the ability to delegate.
Delegation can take many forms for a business executive. Internally, delegation means strategically distributing tasks throughout the organization to ensure that big picture goals are met efficiently and effectively. But what sets apart a good entrepreneur from a great entrepreneur is the capacity to recognize when (and which) tasks may be better suited to be performed by an outside party.
Today, we discuss the benefits to outsourcing accounting services and the most notable signs that it may be time to consider farming out those responsibilities.
The Advantages of Outsourcing Accounting
Billions of dollars are spent each year on outsourcing finance and accounting services. In fact, these expenditures are estimated to have grown by nearly 25 percent in the last five years. Why? From focusing on business development to innovating within the organization, business owners simply lack the time and proficiency to adequately manage the company’s finances.
From large corporations to small businesses, more and more companies are leaning on outside expertise to handle accounting services. In doing so, these organizations are able to stay competitive in today’s ever-changing business climate as they strategically outsource tasks outside of their wheelhouse.
The reality is that even the most genius “big idea” is sure to fall short if the company cannot handle its financial records. The following are some of the most significant advantages to outsourcing accounting services:
- Save a lot of time, especially as the company expands and the financials become more complex
- Significantly reduce overhead costs by avoiding hiring an in-house accountant
- Expertise to make sure regulatory standards are met, all while having the confidence that the accounting is done accurately
- A deeper level of data security is met via accounting software used by the professionals
- Minimize the level of risk by ensuring that reporting is accurate and timely
- Make more effective and fast business decisions based on the financials
- Flexibility to handle your needs as the business scales
- Access to a consultant who can have valuable discussions about the big picture of the company
Being proactive in hiring an outside accounting firm to handle your company’s finances can make all of the difference in the long-run. Far too many business owners are shortsighted as they see upfront costs and no immediate value. Nevertheless, having a dedicated, experienced team handling your accounting services is the best way to ensure that your company is profitable and thriving.
At Ellrich, Neal, Smith & Stohlman, P.A., our tax planning service goes far beyond filing a tax return. We assist new businesses with basic ownership options and tax consequences and guide growing businesses through year-end planning and projections. We offer a broad range of consulting services that include evaluating material transactions, mergers and acquisitions, international taxation strategies, and estate and trust planning.
Contact our Palm Beach Gardens or Miami offices today to learn more about outsourcing your accounting needs!