Hate using your time to keep track of your business’s finances? You’re in good company. Many business owners consider bookkeeping, accounting, and tax filing the least enjoyable aspects of running their companies.
Yet countless business owners still manage their finances by themselves—not because they like punishment, but because they believe they’re saving money by doing so. Particularly for early-stage companies, an accountant or accounting department seems like a luxury that’s difficult to justify.
This belief frequently has little basis in reality. For a growing business, outsourced accounting can absolutely be worth the cost. By outsourcing your company’s books, you can save money on taxes, make better use of your and your team’s time, and gain the perspective you need to more effectively communicate about your organization and your vision.
Here are a few reasons outsourced accounting is worth the cost:
Outsourced Accounting Can Save You Money in the Long Term
How much is an hour of your time worth? (If you’re not sure, try out this tool from Clearer Thinking.) Multiply that by the estimated number of hours you’ve dedicated to managing your company’s finances yourself. That’s how much you’re currently spending on bookkeeping and accounting.
In most cases, an outsourced accounting and bookkeeping solution costs far less than what a business leader would pay themselves for the same job.
Keep in mind we’re talking about opportunity cost—the potential gains you miss when you focus on needs that are a) outside of your expertise and b) don’t directly generate revenue for your business. Your opportunity cost could be greater—much greater—than a few lost hours per week or month. Consider what you could accomplish in the time it takes to put together a financial report, file your taxes, track reimbursements, create invoices, or manage any one of a number of essential (but non-remunerative) financial priorities.
Plus, financial professionals tend to do the job faster and with fewer errors, delivering greater value while minimizing missed deadlines and penalties. Additionally, they’ll make sure you claim as many tax deductions and credits as possible, further improving your bottom line. Outsourcing also means that you don’t have to hire an in-house accountant or bookkeeper, which eliminates the extra overhead of benefit packages or payroll taxes.
Outsourced Accounting Improves Financial Visibility
Business owners who engage in DIY bookkeeping and accounting fear they’ll lose visibility into their books if they outsource. The idea is that if you do something yourself, you understand it better. In organizational financial management, however, the opposite tends to be true.
There are insights you don’t get from simply paying your bills and updating your balance sheet when you have time. When your books are kept accurately and up-to-date by professionals, you have better visibility into your business’s financial health. You can quickly identify challenges or opportunities and adapt accordingly—by cutting spending in a certain area, for instance, or investing in office equipment to lower your taxable income for the year. (Not every outsourced accounting solution specializes in this type of transparency; inDinero does.)
Switching to Outsourced Accounting Doesn’t Have to Be Difficult
When your business is growing rapidly, every minute of your time counts. And hiring a new vendor or consultant can take longer than expected when you have to track down information and learn a new system. But if you don’t put in that time while your business is expanding, the demands on your time will only grow.
At inDinero, we’ve made getting started with outsourced accounting as easy as possible. Our solution is designed to scale with the companies we serve. As you grow, your accounting will grow with you.
Ready to try outsourced accounting for your business? Discover how easy it is to make the switch.
Quick Note: This article is provided for informational purposes only, and is not legal, financial, accounting, or tax advice. You should consult appropriate professionals for advice on your specific situation. inDinero assumes no liability for actions taken in reliance upon the information contained herein.