10 Best Outsourced Accounting Services for Your Small Business
Marilyn was a small bakery owner. Her business was doing pretty well. Sales were up; customers enjoyed her cakes and donuts.
Everything was going well until the tax season came. All these numbers started to make Marilyn’s head spin. Her office desk seemed like a financial warzone. She couldn’t handle it anymore and decided, “I should outsource this. This is way beyond me.”
So, she decided to outsource accounting services to Tangent Consulting, which reduced her stress, and most importantly made sure her finances were in top shape.
As a small business owner if you are thinking that “Gosh, this is exactly what I go through,” then stick around as we talk about the 10 best outsourced accounting services for your small business.
Let’s break it down.
1. Bookkeeping
This is something you must have heard about. If you haven’t, then bookkeeping is the backbone of your business. According to a survey by the Small Business Administration, 60% of small business owners lack basic accounting and finance knowledge. So, outsourcing bookkeeping makes sense.
Outsourcing bookkeeping services involves managing day-to-day financial tasks such as tracking transactions, reconciling bank statements, and handling accounts payable and receivable.
You can check out our detailed guide here if you want to learn more about the bookkeeping services.
2. CFO services
If you want a stress-free approach, we suggest outsourcing CFO services. The CFO or Chief financial officer looks at the overall performance of the business. The services include cash flow management, risk management, advisory services, and tax compliance.
They can also help with budgeting and forecasting, as they understand your business requirements and goals and help you achieve them.
According to PwC, 75% of small businesses report a positive impact on their long-term growth when they hire CFOs.
3. Payroll Processing
Payroll processing is one of those tasks that make you confident about your accounting. “Oh, it’s pretty simple; I’ll just write checks and boom!”
However, payroll processing involves more than that. It involves processing employees’ payrolls, tracking withholding taxes, calculating benefits, and monitoring tax regulations.
When you outsource these services, you ensure that your employees are paid on time and that you are following the tax laws.
4. Tax Preparation
Good ol’ taxes can drive any small business owner crazy like Marilyn. Of course, we understand that they are time-consuming. A lot of things can go wrong, and the IRS or CRA can raise their eyebrows. In fact, the IRS reports that 40% of small businesses face penalties for filing their taxes late or incorrectly.
Outsourced tax services make sure your taxes are filed timely and according to the regulations. Outsourcing can also help in tax planning, maximizing tax deductions and minimizing liabilities.
5. Financial Reporting
Regular financial reporting gives you an overview of how your business is performing. But if you aren’t doing it properly, you may not know if your business is profitable or is losing money.
So, outsourcing financial reporting gives you a detailed analysis of profit/loss statements, balance sheets, and cash flow analysis. With this analysis, you can improve your business’s bottom line.
6. Accounts Payable and Receivable
In simple words, accounts payable refer to money going out, and accounts receivable refer to money coming in, which are important for maintaining a steady cash flow.
If you have a small business and you conduct a lot of transactions, maintaining a steady cash flow can become difficult. According to Fundbox, 64% of small businesses have unpaid invoices, which affects cash flow and business operations.
When you outsource accounts payable and receivable, the service provider will ensure that your bills are paid and that you collect payment in a timely manner.
7. Auditing
Auditing seems like a horror show, but it’s good if you are a small business owner. By auditing, you make sure your financial statements are accurate, and they are complying with regulations.
When you outsource auditing, the company conducts internal audits, reviews your financial statements, and ensures everything is running smoothly.
Outsourcing auditing has another benefit. When your auditing is spotless, getting investments or loans becomes easier.
8. Controller Services
If your office desk is becoming a financial warzone like Marilyn’s desk, it might be time to bring in the controller.
A controller manages all financial operations, oversees bookkeeping, and prepares financial reports. In simple terms, a controller acts as a bridge between bookkeeping and the CFO and as a whole finance department.
9. Inventory Management
Suppose your business deals with physical products like Marilyn’s; managing inventory can be a headache. According to a study by Wasp Barcode Technologies small business report, 43% of small businesses don’t track inventory or use a manual process (it’s not 1990, you know).
When you outsource inventory, the service provider will help you track stock levels and manage orders. This calculation ensures that you always have the right amount of inventory without overspending or underspending.
Inventory management is also related to cash flow, so this can be doubly best for your business.
10. Business Consulting
When talking about the best outsourced accounting services, it’s not all about numbers; sometimes, you need business consulting.
These experts give advice on multiple topics, including financial and business operations. If you are a small business owner looking to scale your business, an expert consultant like Tangent Consulting can help you identify growth opportunities and streamline your current operations.
How to find the best outsourced accounting services?
Ok, we have covered the 10 best outsourced accounting services, but you may ask, where can I find these services for my small business?
The right services depend on your specific needs, budget, and business goals. However, regardless of your business’s size, you need to outsource sooner or later.
If you are looking to outsource, why not outsource to Tangent Consulting? We become your finance department or département des finances. By outsourcing, you’ll free up plenty of time and have peace of mind.
So, which of these services will you be outsourcing to Tangent?
FAQs
Is outsourcing accounting a good idea?
Outsourcing accounting is a good idea when you lack resources, time, or understanding of financial complexities.
What are the steps of outsourcing accounting?
The steps for outsourcing accounting include identifying the services you need, contacting an outsourcing firm, and choosing the services.
Is it cheaper to outsource?
Generally, when you outsource accounting, you get better value for your dollar, as you don’t need to hire employees or an in-house team.
