What are Outsourced Accounting Services ?
Outsourced accounting is a service for small businesses without an accounting department. These companies do it all from accounts receivable and payable, transaction coding, management financial reporting, payroll services, and many other services. This can be for those small businesses that just cannot afford to hire an inhouse accountant at this time.
You can do some research and find a great outsourced accounting services for your small business. You can also look for outsourced accounting services when you look online or talk to business leaders. They can all help you to find the accounting service that you need.
This article will help you to learn some of the things that outsourced accounting services do and how that can help you. It will give you some of the jobs that are done and what each job consists of. This is just a few of the jobs, you can do research to find more.
Outsourced Accounting Services
- Managing Accounts Receivable and Accounts Payable
One job that these companies do is to manage the money that you receive and the money that you pay out. You can learn more about accounts receivable and accounts payable here: https://cfohub.com/understanding-accounts-payable-and-accounts-receivable/. This will help to improve your cash flow and makes sure that you have payments that are on time. They can provide a number of services such as invoicing approval and storage, order management, customer billing and payments, online payments, check processing, expense reporting, managing vendor inquiries, collections and debt management, and cash forecasting.
- Bookkeeping Services
This is one of the most time-consuming parts of the service. This task can overwhelm your other employees if you do not have a full-time bookkeeper or hire a service like this. If you do not have a good bookkeeper or service, it can have long lasting negative effects on your business.
Outsourcing will also keep your bookkeeping service costs lower because you will not have to hire more people or provide benefits for them. These bookkeepers can help you balance ledgers, manage time and expenses, handle invoice processing, handling employee expenses.
- Processing Payroll
The outsourced company can also process your payroll which means that you can automate this service. This can lead to greater efficiency and reliability for your company. Many outsourced accounting firms will use a type of software that can provide cost effective payroll solutions.
Using technology can reduce the risk of payment returns or tax return errors. This can save your company from paying big fines and penalties.
- Financial Planning
Small businesses need to have operational analysis and oversight to give an overview of their business’s health and to help guide their decisions. Larger firms give this information to the business through their chief financial officers, or CFO. The CFO can give business sense to those that need it to encourage growth.
Since not all small business have the money to hire an onsite CFO, so this can be outsourced as well. The outsourced CFO can handle financial data collection, analysis, projection reports, forecasting expenses and revenue, providing guidance for staffing and financing opportunities, communication with investors, planning and budgeting, and developing increased profitability opportunities.
- Tax Preparation and Filing
Your small business needs to remain compliant with all local, state, and federal tax laws. The outsourced accounting service can help to make sure that you are compliant while they minimize errors that would negatively impact your company. Many of these small businesses will hire Certified Public Accountants, or CPAs who can prepare and file business taxes on time.
They can also manage your payroll tax collection and filing so that you are in accordance with all tax regulations and tax planning services.
- Controller Services
Controller services provide you with thorough financial oversite and analysis of cash flow. These services might include adherence to company policies and procedures, compliance management, audit reports, oversite for processing transactions, analysis of cash flow, expenses oversite, implementing cost reduction methods, reviewing performance indicators, and key performance indicators.
- Creating Financial Statements or Reports
If you outsource your accounting needs, you get access to a large team of CPAs that can prepare the financial documents that your business needs for all reports, both external and internal. You can have help to track your cash flow by consolidating your expenses and earnings into your financial statements.
You can use these statements to attract the investors you want, boost your public awareness, and make sure that you have positive growth.
Conclusion
Hiring an outsourced accounting company can save you money and time and help you to do your business better. You can have all the financial reports that you need done by someone that is experienced in the job and help you to avoid tax penalties and other fees. You will need the right accountant to help you to draw the attention of the best investors to your company.