Is it a good idea for small businesses to outsource their accounting?

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Accounting&FinanceA number of small business owners are hesitant about outsourcing their accounting. They might want to try and keep things as small as possible and involve as few people as they can, they might be dissuaded by the cost of hiring outside help, they might like micromanaging every aspect of their business, or they just have simple accounting needs, that they think they can easily take care of themselves.

Naturally, sometimes they are completely right, and there really is no need for hiring an outside accountant. But, people sometimes don’t even consider this option and simply stay stuck in the way of operation that they have gotten used to, without assessing its benefits or faults. This can end up costing you much more than hiring help, and it is why you should at least go over the pros and cons of outsourcing this part of your business.

There are a number of reasons why you might want to consider taking this step, but we’ll start with what’s probably the most important one – the time that it will save you. If you have been doing your own accounts, you probably became proficient enough in it that you won’t make any costly mistakes, but you might be forgetting about the fact that you could be much more useful to the company if you devoted your time to what your business is actually about, instead on wasting it on something that you could easily hire someone else to do. After all, if you are running a business, you are probably much more competent at that business than you are at accounting, so the time that you devote to the latter is a waste of a valuable resource.

Additionally, regardless of how simple your accounting needs might be, and how good you feel that you have become in doing it, professional accountants will almost always have an edge. If they have been in the business for a while, they have had to deal with a number of different companies, and a number of accounting systems, which is why they might be able to offer you a fresh perspective, point out some of the mistakes that you are making and prevent you from making other that you couldn’t anticipate without their help. It is true that you know more about your business than they do, but you probably don’t know more about theirs.

People might be hesitant to share sensitive business information with an outsider, but accountant’s credibility and trustworthiness is easily checked by giving some of their previous or current employers a call and getting their opinion. There are a number of official bodies that are assessing the expertise of accountants and a certification from those bodies should be a sign that the accountant you’re thinking of hiring is competent.

Finally, don’t be deterred by the cost of hiring outside help with accounting, the value that a professional and experienced accountant will bring can be far greater than the price of their services, not only because they’ll be saving you time and possibly upgrading your accounting system, but also because they’ll make sure that you don’t make any costly mistakes.

By Miodrag Kostic Kole, Account manager from Belgrade. Follow me on Facebook, Twitter, G+, LinkedIn

 

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