If you are reading this article, you are more than likely a small business owner who has recently said something to the effect of, “Aaagh! This accounting stuff is driving me crazy! I have got to find someone to help me with this!”
Every small business hopefully reaches the point where things are growing beyond their ability to be a one-person show.
Significant money is coming in and expenses are spreading out in a variety of directions. There may even be a few employees or contractors in your business. And your taxes certainly get more and more complicated as you grow…ah, how success is rewarded!
At this point you have a choice, try handling the bookkeeping and accounting on your own, hire someone, or outsource it. Chances are you’ve been handling it on your own so far – how’s that working out for you? If you’re like most of the business owners we work with, managing your own accounting and bookkeeping is about as much fun as giving yourself a root canal. Maybe you have enough business that it makes sense to hire someone at least part time. (The downside here is that you most likely won’t be able to afford a CPA so you’ll still need someone to help with your taxes.) And lastly, you can think about outsourcing your accounting, bookkeeping, and taxes.
Did you know that one of the most cost-effective and time-saving steps you can take is to outsource your accounting and bookkeeping?
There are three significant advantages to hiring an outsourced accounting expert vs. trying to do it yourself:
- You save time. Your time is best spent growing your company, not crunching numbers! That’s not what you got into business to do. (Unless you’re weird like us here at Patrick Accounting and you love the fact that your business is about crunching numbers!) Bottom line: outsourcing your accounting frees up your valuable time for work and play.
- You save money. A full-time, on-staff accountant will cost a lot more than an outsourced one. Once you factor in annual salary, payroll taxes, and employee benefits–not to mention the costs associated with that employee getting sick or needing to be replaced at some point!–you could potentially pay up to 70% more than if you outsourced the same work.
Here’s a side-by-side comparison using a typical Staff Accountant position in Memphis, TN* (Patrick Accounting’s hometown. Your mileage will vary, but you’ll get the idea.)
Accountant In-House Outsourced Savings ($$) >Savings (%) Annual Salary $52,000 $24,000 (estimated) $28,000 54% Payroll Expenses (15%) $7,800 none> $7,800 100% Employee Benefits (40%) $20,800 none $20,800 100% Totals $80,600 $24,000 $56,600 70%
3. You get peace of mind. Imagine knowing that all of your financial information is being taken care of for you by experienced professionals you know and trust. Timely, accurate information available to you whenever you need it allows you to make better and more-informed decisions. Freedom from the stress of costly errors and tax violations will allow you to deliver zen-like focus to your business. Omm!
So how do you know when it’s time to outsource your accounting? Here are a few good rule-of-thumb indicators that will let you know it’s time to find an outsourced accounting partner:
- You (the owner) are stretched too thin and need to delegate certain business responsibilities
- Your annual revenues are approaching $1 million
- Your staff is between 5-10 employees and growing
- You need better reporting and insights for decision making than what can be found in off-the-shelf software and from what you can get by doing it yourself
- Your business is growing and outpacing your existing accounting processes
- You are uncomfortable with your internal team knowing how well you are (or are not) doing financially
- You are not able to hire, train, and develop an accounting team to handle all of the pieces that your accounting back office requires
In our world, we like to talk about leveraging “Other People’s Resources.” That’s when you—the business owner—take the burden of personally financing an in-house accountant (or doing it all yourself) off of your shoulders and shift it to an outside firm like Patrick Accounting.
By letting us partner with you, you get to take advantage of our entire team of accounting professionals (conveniently housed and fed under our roof, not yours) for significantly less than what you’d pay someone to be a full-time employee.
We are experts in our field who stay up-to-date on the best accounting technologies and practices. And we are a hands-on firm that still believes in the value of face-to-face meetings. We help you improve your processes, think strategically, and increase your productivity. The result? A bigger bottom line for your business and significantly less stress for you.
Besides, if you have someone like us of your team, we promise that we won’t reheat fish in your microwave or forget to make a new pot of coffee when we drink the last cup.
Have questions about outsourcing your accounting and bookkeeping? Want to find out more about spending more time on your business and not your accounting? Then schedule a call with us. We would love to hear your story and see how we can help.