6 Reasons Why You Should Outsource Your Business’s Accounting

 There are a couple of sound arguments in favor of hiring in-house accountants. Most of these opinions prioritize the business’s need to keep all aspects of its operations under the same roof.

However, outsourcing the task to third-party providers of accounting services in Santa Monica is a more modern approach. These accountants will not work on-site. Rather, they will focus entirely on tasks assigned from a remote location.

Here, you will read a few compelling reasons why so many businesses consider outsourcing their accounting needs.

1. It Frees Up Time

Managing an in-house employee or a team of workers requires you to invest more time than outsourcing. In-person interactions alone can take up an hour or two every day. That is minus the added time needed for hiring, training, evaluating, and actual managing. You can assign some tasks to others, but it will consume their time. Understandably, outsourcing is the better option.

2. Full-Time Employees are Expensive

Just add all the expenses mentioned above – hiring, training, evaluating, and managing. When you do, you will realize that having an in-house employee is much more expensive than an outsourced accounting service in Santa Monica. You do not have to provide a third-party accountant with healthcare, retirement savings accounts, or sick days.

3. Professional Expertise on Demand

In-house accountants can take of accounts payable and accounts receivable. They may even prepare your taxes. However, there is something they cannot do. They will be unable to provide on-demand professional expertise that only a full-service accounting team can give you. Such a team has more resources at its disposal than an individual. Third-party accountants also keep tabs on current accounting rules and trends.

4. Better Efficiency in Other Areas

By taking accounting responsibilities out of your hands, third-party accountants make you more efficient in other areas. If you own a business, you get more time to focus on other aspects of your company. Outsourced accountants can take care of your payroll and budgeting apart from offering expense management and performing other accounting tasks that you or the management team do not have time for.

5. Liability Assumed by the Firm

The matter of liability is one of the most convincing arguments for outsourcing accounting services. Delegating the task of preparing financial statements and taxes to an in-house employee puts the liability of mistakes entirely on your shoulders. Nothing will buffer you from the Internal Revenue Service (IRS) or Securities Exchange Commission (SEC).

6. Better Software Solutions

In-house accountants never get enough time to shop for better accounting software. Accounting firms require the latest and best technology to stay one step ahead of their competitors. This means updating existing software and evaluating new fintech solutions created especially for accountants regularly.

One Last Tip

Finally, an in-house accountant is a paid employee who needs to work a certain number of hours. This employee could be on a full-time or part-time schedule. The constant with either is that you have to pay them even when there is nothing for them to do. An outsourced accounting service in Santa Monica does not work like that. You will pay them only when you need their services.