Over the last 10 years hundreds of thousands of small businesses have sub contracted their bookkeeping function to a local accounting office.
The solution is called accounting outsourcing!
The time you save in managing the bookkeeping function will allow you to spend more time….Building relationships with customers, staff and vendors Allows you to take the time to create systems in your business so it runs like a franchise.
Outsourced bookkeeping can include bill payment, sending invoices, payroll and advanced functions like Chief Financial Officer tasks.
If you looked back to the beginning of your business – could you justify ever putting the time energy and money into setting up a bookkeeping department again. Most owners say they wish outsourcing was common 5 or 10 years ago – they would have saved years of employee drama and bad numbers.
Working on tasks your customers don’t know about like payroll, accounts payable or buying advertising is plum nuts – focus all your effort on building a loyal client base if you want to be successful.
The Power of Partnering with an outsourced accounting firm
Accounting is far more difficult then most business owners believe. Plus, as a group we are reluctant to hire expensive top notch staff. By using our services you only pay for what you need, but more important we have 5 levels of staff on each account. 80% of all outsourced accounting work can be done by low paid people. That way you can afford to put a few hours in at the sr. bookkeeper and maybe one hour a week at the CPA level each to make sure your numbers are ‘actionable.’
Focus on your business when you have a dependable local firm managing your back office
We have an indepth staff to provide accounting outsourcing for your firm. You will finally be able to stop worrying about the bookkeeping function as we take care of all staffing, quality and cost factors on your behalf. You’ll no longer have to hire, train or worry about retention as we provide a total team for each client.
Other benefits of accounting outsourcing and outsourced bookkeepingAccounting outsourcing cuts your capital expense as you no longer need the overhead Accounting outsourcing stops your wasted hours of management time dealing with staff Accounting outsourcing delivers real time accounting that is accurate
The Question is Not Whether to Outsource But What to Outsource
The reason we went into outsourced accounting as a business ten years ago was the answer to the three main questions from the Outsourcing Research Council:If you were starting the company today, would you elect to perform this function internally? Are you so good at performing this activity that others would hire you to do it for them? Will tomorrow’s CEO come from that skill set?
Very few small businesses answer these questions any other way then, “NO.” In our business we strive to outsource everything off the owners desk that cost under $ 100 per hour to get done. We move everyting off our staffs’ desk if it cost less then 30 an hour. Outsourced bookkeeping starts under $ 20 so it is a prime target for cutting cost.
Cut back office infrastructure with outsourced accounting
So in the accounting function you have low level tasks such as entering a bill and paying a bill, followed by receivables and bank account reconciliation, then payroll all the way up to CFO level cash and asset management.
You may be wise to start your outsourced accounting relationship with the very basic work and review your local accountants service before asking them to help you in more advanced services.
Most small business owners want to do the transactions themselves or have the spouse do them because it seems easy. This is a giant mistake. One little thing goes wrong and the entire set of books are at question. Bad numbers = guessing on what’s working in your business.
Accounting Outsourcing has dividends for a small business of 1 to 100 staff
Accounting outsourcing provides a series of benefits according to the The Outsourcing Institute.
Focus on customers not back office. Accounting outsourcing frees you up to put time and energy into customer acquisition and resales.
A local accounting firm has the capabilities already in place –Accounting outsourcing firms use multiple staff for each client with an expert on payables handling your bills while someone else who knows payroll takes that problem. You get the best staff for the lowest cost when you outsource bookkeeping and accounting.
Go Paperless. Most outsourced accounting firms use Delegation Magic to manage your documents and work flow. This will reduce your back office cost and improve your business systems. As far as we can tell it is the best document management system for a small business outsourcing accounting and other low level tasks.
Shared Capital Expenses. When you are outsourcing your accounting you will tap into the software, training, skill set, experience and communication skills of a team that has been around for some time. Setting all this up in your business, by yourself can take years of effort – that you don’t need to waste time on.
Cutting cost: Although you will pay an outsourced accounting firm more per hour then in house staff, it generally takes them about half the time to do your work as an in house employee takes. On average your in house bookkeeper takes 15 minutes to complete a transation when you consider all time and effort. Outsourced bookkeeping firms using document management systems and on line connectivity can do the same work in 3 to 7 minutes. You capture economy of scale cost reduction because your tapping into someone elses infrastructure.
The bottom line: Outsourcing accounting will provide you with lower cost, better and actionable numbers you can use daily to run a better business and best of all no more employee drama
KC Truby calls himself The Lonesome Cowboy. Since 1987, he has taught 16,000 accountants on how to find and sell more new business clients. 2,000,000 small business owners have his tapes on sales and cash flow. KC has brought 250,000 businesses into a local accountant’s office with hisQuickBooks Made Easy seminars and tax marketing techniques. visit his sites: http://www.cashcowaccounting.com, http://www.paperlessovernight.com, http://www.delegationmagic.com and to learn more.