When it comes to managing finances, smaller businesses require a different approach than that of larger companies. In fact, it’s not a one-size-fits-all situation. For example, loans/financing options can become complicated, the generation of revenue varies, and short and long-term goals will need to be assessed differently. Additionally, small businesses, whether entrepreneurs, start-ups, or family businesses, are typically run by the same person who owns it and is also wearing many other hats. Outsourcing bookkeeping to CPAs who have the right skill in helping small businesses will benefit your company in many ways.
During the early phases of starting a business, it’s always a best practice to establish protocols for financial reporting, budgeting, and other bookkeeping items. Having someone to consult with on how to properly record items will ensure well-executed reports and organization, so you can track everything to the dollar. CPAs can also recommend accounting software and provide advice on how to budget. Starting off on the right foot is a great way to remain proactive.
Having employees on your payroll is a high overhead cost. In addition to salary, employees may also receive benefits, insurance, paid time off, bonuses, and training and equipment costs. Outsourcing bookkeeping to a CPA who is already qualified and who specializes in the type of business you own will cost a fraction of what an employee will. Their experience level will also allow them to perform tasks like reconciliation, invoicing, and debt management in half of the time as someone who has fewer years under their belt.
CPAs analyze data and can suggest ways to improve your business’s performance and cut costs. CPAs also have access to an array of information, whether knowing competitors’ prices and how yours compare to the market or introducing you to new, more efficient software. They may also implement a cash-flow schedule, budget, and a system for recording financial transactions that are compliant with state and federal laws. Choosing to opt out of any sort of financial planning can have serious implications for your business.
Outsourcing bookkeeping to CPAs allows businesses to take advantage of a firm’s scalability and flexibility. Even small businesses evolve and go through dramatic changes. For example, down the road, you may decide to launch a new product, open a new store, or merge companies. Your in-house accountant who once did the bookkeeping may not be as advanced as what your company requires now. Your payables and receivables are now much higher and your overall financials require more detail.
CPAs will have the proper resources to keep up with the demand. Adversely, if business slows, you can choose to receive less assistance.
There are many roles a CPA plays for small businesses, including acting as advisors on how to help you succeed. The economy is ever-changing, and having access to highly trained CPAs will allow you to stay ahead of the game. Their input on financial matters can prevent costly mistakes.
Along with professional advice, they have a team of individuals to help with other time-consuming administrative duties like customer invoicing, paying bills, payroll processing, producing W2s, and securing financial statements. This allows you to shift your focus on things like sales, marketing, and the overall operations of running a company.
To be successful, small businesses need to have innovative accounting services in place. Foster Financial uses the latest technology and accounting software to ensure accurate reporting, recording, and analysis of your business’s financials. If you’re looking to outsource accounting services in the Phoenix, Arizona area, contact us today.
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