Should Small Businesses Still Outsource Accounting?

Running your own business is a world away from a predictable 9-5 job. 

It’s a unique blend of challenges, rewards, and personal growth. Often, you have to multitask, wearing different hats which can lead to frustration or even burnout. 

However many entrepreneurs, including small business owners, are delegating many tasks to free up valuable time. Let’s take a look. 

A Typical Day in the Life of a Small Business Owner

A business owner wears many hats, depending on the size and complexity of the business. This may work for a while, but this is unsustainable as your business grows.

For instance, if you don’t have an accountant or a bookkeeper, you will have to: 

• Record transactions; 
• Prepare payroll; 
• Generate financial reports; 
• Update accounts receivable; 
• File tax returns; 
• Review and adjust the accounting system; and 
• Plan and budget for the next year. 

These are just on top of other important tasks such as marketing, sales, customer service, human resources, and operations.  

Why Do Small Business Owners Outsource Accounting?

Small business owners prefer to outsource accounting tasks for many reasons. These include: 

Better Work Quality

Doing your own accounting can be fraught with errors, especially if you’re a business owner who doesn’t have an accounting background. 

Fortunately, you can outsource accounting tasks to qualified professionals. They can prepare payroll, have proper reporting, and organise financial records accurately and efficiently. 

More Time for Business Development

A growing business requires a lot of time and attention. 

By delegating basic bookkeeping and other complex accounting tasks, you will have more time to develop your products and services. 

You can also allocate more time for other equally important functions such as lead generation, raising brand awareness, and conducting market research. 

Related article: Bookkeeping Services for Small Business

Lesser Operational Costs in the Long Run

Hiring an outsourced accountant may be an additional expense. However, it’s nowhere near as expensive compared to hiring in-house staff. 

Moreover, you don’t have to spend a lot on training and supervision. 

The same goes for equipment and payroll taxes, among other overhead expenses associated with office-based staff. 

Timely and Reliable Service 

Outsourcing accounting tasks to providers such as Remote Staff ensures high-quality work. 

Remote Staff provides qualified Filipino accountants and bookkeepers, most of whom are licensed accountants with relevant work experience. 

Thus, you can depend on them to help not just in recording daily transactions but also in

• Reconciling bank statements; 
• Financial reporting; 
• Tax preparing and filing; 
• Budgeting and forecasting; 
• Financial analysis; 
• Risk management; and 
• Business planning and modeling. 

More Efficient Use of Personnel 

It can be tempting to assign accounting tasks to internal staff. However, this can be counterproductive. 

Your internal staff may not be knowledgeable about bookkeeping or tax filing, resulting in costly mistakes and possible legal sanctions. 

Hence, it’s better to delegate accounting tasks to professionals. This way, your in-house team can also focus on revenue-generating processes, core services, and production.

Delegating accounting tasks doesn’t mean giving up control. 

In fact, outsourcing accounting and other non-core functions gives you better chances of growing your business. However, if you don’t know where to start, Remote Staff has you covered!  

With over 16 years of experience partnering businesses with Filipino remote workers, we can match you with the right accountant. 

Call us today or request a call back now.