Studies show that accounting is one of the most commonly outsourced jobs in a small business. 37% of all accounting and IT tasks are being outsourced. Many successful businesses use outsourced accounting services to keep their business running.

Do you want to learn more about the benefits of outsourcing your business bookkeeping services? Have you wondered if a fractional CFO is right for your company?

Keep reading this guide for the top reasons you should consider accounting outsourcing services or engaging a fractional CFO for your business and find bookkeeping services near me.

Saves Money

One of the biggest benefits that businesses gain from engaging firms to provide outsourced accounting services is that they will save money. The cost of accounting services and business bookkeeping will vary by company depending on their industry. Pencil, Inc. offers both project-based hourly rates and ongoing monthly retainer rates to allow for maximum savings on your accounting management costs.

A fractional CFO and their team can provide considerable cost savings because they work at an hourly rate or on retainer. The fees can be anywhere from 50-75% less than it would cost your business to pay a staff accountant or Controller on your payroll full-time.

By outsourcing accounting services, businesses can save money in many areas including higher salaries, payroll taxes, employee benefits, and more. Plus, the average sunk cost of hiring a new employee is about $4,000.

Businesses can simply pay for the services they need from their outsourced bookkeeper or fractional CFO and save money on the services that they don't require.

Saves Time

Outsourcing accounting for businesses will also save time. As a business grows, it requires more time to manage cash flow and take care of the administrative tasks of bookkeeping.

When businesses outsource these services, they will have more time to focus on other areas of their business. This includes taking care of customers, networking, building their products and more.

Plus, it will save time during the hiring process. Recruitment can take weeks or even months to find a full-time employee. Outsourcing will remove the need for this recruitment process!

Improved Efficiency

Next, outsourcing a business's accounting management will improve its productivity and streamline its operations. It allows them to get more tasks done more efficiently.

A business can automate many accounting processes that take up valuable time and resources. For example, rather than manually issuing checks to employees an outsourcing firm can help them set up direct deposits and also manage filing payroll tax returns.

The outsourced bookkeeper can even automate bill payments to reduce the time needed to accomplish these simple tasks.

Flexibility

Outsourcing accounting services also increases a business's flexibility. Because business needs are regularly changing, it can be difficult to know what services are necessary at each stage of its growth.

A fractional CFO and their team can easily adapt and adjust their engagement to meet business needs as they change. They will only provide the services that a business needs. This means that business owners won't be paying for unnecessary services at any given time, as the business needs change.

Access to Experts

Outsourcing the management of your accounting also provides businesses with access to experts. When businesses hire a Controller for their company, or an expert in the accounting field, it can be very expensive.

When outsourcing that work, businesses can have a higher level of expertise at a much more affordable price!

Plus, outsourcing firms will only hire the best team members. They stay up to date on the best practices in the industry. Outsourcing firms hire staff with even more qualifications, training, and education.

Outsourcing this service will ensure that you always have access to expert advice when it comes to your business finances.

Easy to Scale

It is also easy to scale outsourced accounting services for a business. As a business grows, its accounting needs will change. Rather than having to hire new employees, a business can scale more easily with outsourcing.

Typically, the cost of outsourcing accounting services is charged by the hour. This means that businesses can choose how many hours they need and adjust as their business needs change.

If a business is expanding, it can scale its accounting services up. If they are going through financial difficulties, they can scale back the outsourced services. This can prevent the need to lay off employees.

Avoid Common Problems With Employees

When businesses have full-time employees, there are many common problems that they have to deal with. For example, a full-time staff accountant may need to take time off during a busy time of year.

Businesses will also have to deal with employee turnover when a full-time employee quits. This leads to increased costs and time required to recruit a new employee.

To avoid these common problems, businesses can outsource their accounting needs!

Easier to Focus On Other Responsibilities

Business owners have many responsibilities. These can be impossible to take care of without additional help.

Hiring a company for outsourced accounting allows businesses to focus on other responsibilities! Rather than doing day-to-day tasks, businesses can focus on growing and improving.

This allows them to improve the core functions of their business rather than focusing on unnecessary tasks.

Access to Better Tools

Hiring an outsourced accounting firm will also provide business owners with access to better tools. If businesses are responsible for their own accounting needs, they will have to pay for many tools. Each of these tools can greatly increase its overhead costs.

However, outsourcing services already have these tools, like QuickBooks and Xero. They spread the cost of each of these accounting tools across all of their clients, so it will not be as expensive.

Because these services have these tools, business owners will reap the benefits without the extra cost! This can make the accounting process much more efficient and accurate.

More Accurate Reporting

Another great benefit of accounting outsourcing is that it will provide businesses with a higher level of accuracy.

Because these services only hire highly trained experts in the field, businesses can feel confident that they are getting the best quality services possible.

One reason why outsourced services are more accurate is that they use automation whenever possible. This reduces the likelihood of human error during data entry tasks. This prevents unnecessary mistakes when it comes to financial reporting.

It is also more accurate because it prevents businesses from falling behind. It can be easy for businesses to not stay on top of bookkeeping and other financial records. An outsourced accounting service will help you maintain accurate and up-to-date financial records.

Avoid Penalties

Not only is accounting outsourcing more accurate, but it can also help you avoid penalties. If you make mistakes with payroll tax returns, tax deposits, or other bookkeeping errors, you can face serious consequences.

Outsourcing the management of important compliance tasks can help businesses avoid negative outcomes. These can include late filing penalties and other potential legal repercussions.

Reduces Risk

Outsourcing also reduces risks for businesses. Without the right prevention, businesses may deal with fraud, theft, and even human error. This is especially common when businesses have fewer resources and fewer employees to rely on.

If a business makes these mistakes, it can lead them to trouble with the IRS. It can also create credibility issues with investors, lenders and others invested in a business's finances.

Outsourcing accounting services will lower these types of risks. It will ensure that multiple people are in charge of your finances and will lower the risk of human error.

Access to Financial Data

Another great benefit of outsourcing accounting is that it provides businesses with real-time access to financial data. Most outsourcing services rely on cloud-based accounting software. This way, businesses can access important financial data at the touch of a button without needing to access a hard copy.

It also makes it easy to access this data from anywhere. Rather than having to track down paperwork in a specific filing cabinet, it can be found virtually.

Additional Services

Most outsourcing firms will also provide additional services to their clients. This way, businesses can have one company to help them with all their financial needs. The client can bring a myriad of services “in-house”. This includes engagements like preparing personal financial statements and working with your business’s CPA to streamline your tax return preparation.

Many fractional CFOs and teams like the one at Pencil, Inc. even help with setting up a new cloud-based accounting system for the business.

Businesses can discuss their financial needs with their accounting firm to find the additional services that best fit their needs.

Prepared for Tax Season

Finally, outsourcing accounting ensures that your company is prepared for tax season. It can be challenging to keep your financial records organized and prepare financial statements correctly without any bookkeeping experience. The team at Pencil, Inc. will work with you to manage these tasks.

When a business has maintained its bookkeeping throughout the entire year, it is much easier to prepare for tax season. They will have everything they need in one place!

Many fractional CFO services will also help clients with the actual tax return preparation process. This can save business owners countless hours and hundreds of dollars on additional CPA fees. Plus, it will help to ensure that their taxes are filed correctly to avoid any unnecessary penalties or headaches from dealing with the IRS.

Looking For Outsourced Accounting Services? We Can Help

When you run a business, it can be difficult to stay on top of everything by yourself. Hiring outsourced accounting services can provide your business with improved reporting, cost savings, and more.

Are you looking for Dallas bookkeeping services or remote outsourced accounting services? Pencil, Inc. can help! Our team of experts provides everything from general ledger & financial statement preparation, certain state and federal tax returns, and bookkeeping.