What are Your Accounting Costs?
Any business that is keen on growth must embrace the accounting costs. Quite often, many business owners tend to focus on the cost of outsourcing for accounting services and overlook the real value of such professional services. This is especially common with small business accounting.
No doubt cost is an important factor in choosing the type of outsourced service provider you want to work with. However, you need to understand and appreciate the value your business service provider brings to the table. It is typically okay to delegate certain aspects of your business that do not directly bring income. It is also okay to finance the same on a minimum budget. However, when it comes to accounting, you need to consider the real costs and benefits of professional expertise.
Small Business Accounting
For small businesses, hiring professional in-house bookkeepers can be expensive; hence, the costs involved can not be overlooked. Besides the salary, there are other direct costs such as medical cover, worker compensation, retirement benefits, employer payroll taxes, and other expenses. Then there are employee leave and sick days, classified ads, screening tests, employee training, and other recruitment expenses.
Considering the above factors, have you ever tried to do your own accounting? Was it worth it? Almost invariably, you spent too much time working on your books at the expense of other aspects of your business. Or you were not familiar with the art of bookkeeping and ended up making avoidable mistakes. Whichever the case, chances are that it was not a profitable experience.
Think of professional accounting services as part of your investment. Something that does not only take from your expenses but that which can be profitable in the long run. Any Carmel accountant can assert that it is possible for a business, however small to enlist professional accounting services without compromising stability.
Let us examine the real cost of accounting:
The Cost of Precision
Do you find yourself often reverting to your bookkeeper to have a report adjusted and Information clarified? Do you constantly have to do follow-ups and deal with avoidable mistakes? Are you usually satisfied when your reports are in or do you often doubt the accuracy of the data?
The first element of cost measurement is precision. At Savage Accounting, we have taken numerous books from different companies from previous accounting firms. Some of these firms had fixed fees and ridiculously low hourly rates. It turned out that their bookkeeping was below par, and the data in those books lacked integrity. The reports were never submitted on time, and the information could never contribute to the growth of the businesses. The cost of precision must never be overlooked when outsourcing for accounting services.
Cost of Strategy
When you examine your financial reports, do they help shape your business direction or highlight your growth potential? Do they inspire you to consider additional investment, or do you often have to deal with frustrations?
One of our clients confessed that her reports are usually about recaps of the previous months and never about growth prospects or insights. She had no idea such an analysis should be included in the reports. Of course, that’s what happens when you settle for “cheaper” accounting services. The most they can do is tell you “what happened” and leave it at that.
However, if you are keen on growth and want to elevate your business to the next level, then you should invest in accounting services that share and support your vision. Many Carmel accountants can tell you that such accounting services are not only affordable, but they are also invaluable resources. Other tips include:
Cost of Responsibility
Are you supervising your bookkeeping affairs, or did you have to stretch your budget to accommodate a supervisor? Can you manage the processes and the training or have you delegated that responsibility to your in-house bookkeeper? Being accountable for your accounting systems and procedures is vital in ensuring the accuracy and efficiency of operations. Not many business owners have mastered this art of accountability, and not many are willing to appreciate the cost. You should if you want your accounting done the right way and not just being done. Here are some additional resources you might find helpful.
Quick Outsourced Accounting Tips
Outsourcing for accounting services is nothing new. All major businesses have been doing it and reaping the benefits. Below are a few accounting tips you may find insightful.
Outsourced Accounting Minimizes Your Workload and Expenses
Having an accounting service partner like Savage Accounting will reduce your yearly expenditures by a substantial margin. Add to that reduced workload as we handle all your books and financial statements as well as prepare tax returns. We will work full time with your tax expert to ensure your accounts and taxes are ready by the end of the year. Learn more about accounting and tax here
Outsourced Accounting is a Business Resource
When we take over your accounting responsibilities, we do not just submit recaps or substandard reports. We understand your business is unique and endeavor to deliver unique results. We do monthly follow-ups and review, dress all challenges and issues related to accounting, and introduce solution-oriented strategies.
To understand what we do best, we present our clients with a complimentary proposal where we share our accounting techniques and the benefits of our services. Overall, we compile, review, audit, and prepare all financial statements at competitive fees.
The success and growth of your business are reliant on the type of accounting system you a have in place. You want to look at the cost of your accounting from a different perspective. Therefore, you must look past the price and focus on the benefits your accounting firm will bring. The best accounting service is an investment that should contribute to your business growth. As technology and businesses continue to evolve, we need to follow suit. It’s time to ditch the traditional accounting method of merely reviewing and confirming data. Instead, we should embrace contemporary accounting that supports that is goal-oriented – and appreciate the costs that come with it.