Every company wishes to taste success, and when it does, it wants to expand more and more. However, to focus on enhancing business growth and scalability, it is imperative to deal with the challenges successfully concerning in-house operations and outside competition. If we focus on streamlining the in-house operations, the accounting process holds immense importance. It demands a lot of time and effort, and the business owners can spend only a limited amount of it on accounting. So, can outsourcing accounting services help them solve their scalability concerns? Let us hear the views of industry experts on the topic!
Katie L. Thomas
Outsourcing Saves In-House Staff Cost
I built my own business three years ago to fill in gaps for businesses in their accounting services. Largely, outsourcing accounting services has been instrumental for smaller businesses that need some higher-level Controller or CFO services but don't need to spend the money on having someone in staff for full-time. We've been able to help them implement controls, best practices, and start looking strategically at their business instead of just processing the day-to-day operations.
Outsource Small CPA Form Tasks During Initial Scalability
If a CPA firm is trying to scale, when starting out, outsourcing small tasks may solve small scalability issues. However, once the firm has so much business that they are outsourcing over 40 hours of work a week, it makes more sense to start hiring in-house to get the best performance and most productivity for what they are paying.
Co-Founder of SellMax
Outsourcing is Better than Hiring in-House
Yes, in our case, outsourcing our account tasks allowed us to scale much more rapidly. When the business started growing fast, I thought it would make more sense to hire someone in-house. The only problem was that I had no accounting experience myself, so hiring was very troublesome. When we did bring someone on board, I had trouble leading. Quite frankly, I wasn’t exactly sure what to tell him as it was too far out of my comfort zone. Additionally, I was wasting hours trying to pick up on some basic tactics myself. I found out that some things are best left to the professionals.
What we ended up doing was keeping one individual in-house, but outsourcing the bulk of the work. Now, the accounting team we outsource the work to works hand-in-hand with our in-house accountant. Essentially, he serves as the last line of defense to make sure no mistakes were made, and to explain what’s being done, and for what reasons to me.
CEO of Crediful
Do not Rely on Outsourcing only for Growth
Outsourcing can be a stepping stone towards solving the scalability problem because it offers flexibility. With outsourcing services, a business can focus on its growth plan without trying to satisfy the workload to a resource problem. But it's important to understand that outsourcing should really only be a temporary solution to a long-term concept.
If you're really trying to grow your business, then that business needs to be able to handle more clients and a larger workload. Outsourcing could leave you with the need to hire more outsourced labor instead of simply investing in well-trained in-house employees. Additionally, there's the risk of a drop in quality and of course, security concerns.
Reaching beyond the company is useful when first planning for a business level up, but it shouldn't be your only move.
Marketing Director at Go-Forth Pest Control
Outsourcing Offers a Complete Package
Outsourcing not only our accounting (bookkeeping and tax work), but also our administrative and HR tasks, was the ultimate solution for our medium-sized business. Realizing that our small business had grown big enough that the owners did not have enough time or expertise to manage the accounting, HR, and regulatory needs of a quickly growing medium-sized business, we hired a fractional CFO, fractional admin, and a fractional HR company to help us with these needs.
This gave us access to experts whom we could not afford to have on our payroll (tax lawyers and accountants, bankers and real estate brokers, CPAs, HR professionals, etc.). We would not have been able to sustain our growth in revenue and team size if we had continued to have our owners, whose backgrounds are in marketing and entrepreneurship, handle all these needs.
Co-Founder of Credit Reps
Outsourcing Solves Time and other Accounting Issues
It depends on the size of your company. In general, outsourcing definitely solves time and payroll issues. I’ve dealt with both in-house and remote accountants.
Outsourcing accounting solves the problem of not having an in-house specialist or wanting a cheaper cost of accounting services.
So, in a sense, outsourcing can help with:
- The introduction of new processes.
- Saving 75% of Cost for Bookkeeping and Accounting Outsourcing.
- Monitoring of live-work by Remote Desktop through Remote Employee, so we can save time for the next day.
- Improving the old processes.
- The digital transformation (hardware and software).
- The new ways of generating business, connecting with customers.
Also, a successful small business could hire a competent part-time accountant, and the cost may be cheaper or the same as a full time outsourced accountant.
Owner, Personal Touch Concierge
Outsourcing lets you Focus on Growth and Scalability
As a business professional, one of our 5 divisions is online bookkeeping services. Our clients are small to medium business owners, many of them virtual, who find that outsourcing bookkeeping is one less thing they need to worry about, which allows them to focus ON their business, instead of IN it (you know the drill) and, therefore, grow their business. And it’s good to note that our clients who don’t use us for bookkeeping also outsource their bookkeeping to other accounting/bookkeeping companies as well. It’s pretty unusual to see a smaller company have its own accounting “department.” It really doesn’t make sense to pay for the space, equipment, maintenance of the equipment, etc., when there are secure bookkeeping options available.
President, Well Kept Wallet
Outsourcing Lets you Focus on the Future
Outsourcing my accounting needs has been a huge help so that I can focus on what I am good at and grow the business. I used to spend hours inputting data into Quickbooks, and now I pay a firm a flat monthly fee to do it. This has given me more time to focus on the big picture as well as activities that will move the needle in my business.
In a nutshell, we can say that outsourcing indeed solves the scalability issue for most of the CPA firms. Business owners can save a lot of time and effort through outsourcing, which they can utilize for devising strategies for business growth and scalability.
About the Author: Stacey Howard has 6 years of experience in accounting & bookkeeping. She has been working as an accountant with reputable firm Cogneesol– accounting and bookkeeping service provider. Due to her passion, she has contributed significantly through her write-ups about multiple accounting industries.