As a small business owner, you may find yourself wearing many hats: owner, product creator, employee manager, and more. Many business owners originally start their companies because they’re skilled in one area, such as creating a product. Financial processes, on the other hand, can present new challenges.
Instead of struggling through bookkeeping and tax preparation on your own, consider outsourcing your financial processes. It’s a great way to make sure the job is done properly, freeing you up to focus on your primary skill set and other obligations.
What kind of services can you outsource?
Typically, business owners outsource bookkeeping and tax preparation services, although it’s possible to hire outside companies to handle human resources, customer support and supply chain management, among other processes. Financial process outsourcing is popular because it can require a specialized skill set and tends to be time-consuming.
Benefits of outsourcing financial processes
Here’s why you should consider outsourcing your financial processes:
- Cost-effective: Hiring a full-time or part-time financial professional within the company can be expensive, especially if you’re just getting started. Adding another person to the payroll may not be the best investment, but doing it yourself or asking existing employees to take over can also hurt your bottom line. Outsourcing is a cost-effective way to benefit from professional services, without needing to add another employee.
- Efficient: If you struggle with tax preparation and keeping your bookkeeping records organized, it will probably take longer. Over time, that can take your attention away from projects and tasks that only you can perform. Hiring an outside professional is often more efficient than trying to take on the tasks yourself.
- Specialized skills: Bookkeeping and tax preparation require a special skill set. Handing the reins to a dedicated financial professional gives you the benefit of their education and experience. Because they spend all day, every day handling financial processes, they have special expertise and industry knowledge the average person does not. For example, you might learn about specific tax deductions and strategies that can lessen your tax burden each year.
- Reduce year-end work: The end of the year is a busy time for most companies, especially as you create year-end reports and work on tax preparation. When you work with a financial professional on an ongoing basis, you’ll already have up-to-date records and processes.
- Enhanced accuracy: Finally, outsourcing financial processes can enhance the accuracy of your financial records. With a skilled bookkeeper and tax professional handling your processes, you’re less likely to make errors that could harm your company’s bottom line. If your company is audited, you can be confident that you’ve got the appropriate documentation to avoid fines and penalties.
Ultimately, outsourcing your financial processes is a net positive for most business owners. Why not enjoy better accuracy, free up your time and save on hiring costs?
For more information about outsourcing your bookkeeping and tax preparation, call MCG Solutions today. We use our specialized financial and tax knowledge to support small businesses across all industries.