You might think your company saves money by handling bookkeeping and accounting services in-house, but many companies find that’s not the case.
Services commonly contracted include basic bookkeeping, accounts receivable, accounts payable, payroll, strategic plans and budgets, internal auditing and more.
Here’s a quick list of reasons to contract accounting:
1. Access to Expertise
When you contract accounting, your company gains access to high-level accounts with years of experience. And you do this without having to hire or train qualified personnel.
Finding the right candidate to keep your books is a job in itself, especially if that person is going to operate solo. You need someone with experience and knowledge that is up-to-date. Keeping track of changing legislation can be a difficult task – one more easily performed by a group of bookkeepers as opposed to a single bookkeeper.
2. Better Accuracy
When you contract accounting, you turn your books over to a group of people whose sole function is to make sure your books are accurate and timely. You reduce or eliminate potential errors, omissions, fraud, and other problems that can crop up by doing accounting and bookkeeping in-house. Four or twelve eyes are better than two.
3. Redirect Energy to Strategy
The time and resources spent keeping the books can be spent on more important, profitable activities in your business. The less time management spends on making sure that bookkeeping is accurate and timely, the more time management can spend on the business of running the business – strategy.
4. Save Money
You might actually save money if you contract bookkeeping and accounting services. Consider all the costs of doing it in-house, such as recruiting, salaries, taxes, training, paid time off and benefits.
For many companies, it is cheaper to contract accounting with professionals who specialize in it rather than keep someone on staff full time to do it.