I recently learned that even companies as large as $50M in revenue outsource their accounting department. Here are 4 compelling benefits of outsourcing your accounting for any size business.
- Turnover/Downtime – Accounting is an extremely important function of your business. When you lose an accounting person it puts your company in a volatile situation, especially if your accounting team is a one man show. Who’s going to do it if that person walks? A two-week notice is not enough to get someone else in that chair. The cost of turnover is another problem, studies have shown it costs 1.5 – 2.0 times that persons salary to replace them in down time, employee morale, recruiting costs and so on. Even worse, an employee leaving without notice, I’ve heard this story too many times how a part-time bookkeeper decides one day to get a full-time job and leaves your company in the lurch. Yikes, what then? Imagine never having to worry about this potential disaster, what a relief that would be, right!
- Confidentiality – this is a big one. There is at least one employee in your company that, if you don’t keep them happy, they could take you down, seriously. They know everything, what everyone makes, including you. How the company spends their money. They can see if the company is taking a downturn. With their knowledge they even have the power to make all your employees go running for the hills if they wanted to. Is it wise to give one person inside your company this much knowledge and power? Outsourcing your accounting can solve this problem and you’ll never have to be up at night worrying, well at least about this problem anyway.
- Access to several levels of expertise – Outsourcing your accounting you don’t need to hire a full-time CFO/Controller and a full-time Staff Accountant/Bookkeeper. You can have access to both levels on a part-time basis for a flat fixed monthly fee less than what you would pay for a Full-time Controller/CFO. Again, not worrying about finding the right person with the right personality to fit in with your staff who would be OK with doing whatever needs to be done. Paying an outsourced accounting firm, you get all you need at the levels you need at the price you need.
- Less office space and equipment – All office employees need a desk, a computer and space. Your accounting person is no different. This costs your company money that they could save hiring an outsourced accounting firm. With today’s technology, accounting is quite an easy department to outsource. Have your accounting done remotely and save that precious office space.
Looking for accounting solutions and recognize the value of outsourcing your accounting, contact us or schedule an appointment to discuss your needs. I’d love to chat about how Controller onDemand can help you and your company.