A question I get often is whether or not to outsource parts or all of my companies accounting. I’ve put together a video presentation to discuss the subject. Please take a look if you have a few minutes.
All functions of a business’s accounting system is outsourceable. We can certainly outsource all or part of the accounting system. We work with the management of a business to determine what services they are comfortable with and desire to do.
We find that in many cases when a business starts out they want to save professional fees and perform some of the routing accounting tasks and as the business progresses they want to focus their own time on running their own business and rely more on outsourcing.
Businesses can outsource Transactional functions
-Billing Accounts/Receivable – We prepare the customer invoices and send them out – Payments can be made ACH or credit card and we can maintain the receivable account and record the payments.
-Accounts Payable – The client can faxes or emails their vendor invoices – we set them up for payment – the business owner or appropriate person receives a notification allowing them to logon and approve the payments and then ACH payments are sent out.
We maintain a company’s general ledger and make the appropriate accounting entries. We track the fixed assets and reconcile the bank accounts.
We prepare financial statements – an income statement and balance sheet for the company’s management and work with them to help them understand the numbers
Tax compliance we prepare all necessary sales and use tax returns the property tax returns and income tax returns
In addition to the transactional accounting functions business outsource strategic accounting functions as well.
Strategic functions include Forcasting, budgeting, Management reporting and Tax Planning.
When we are performing the day-to-day accounting tasks and continuously monitoring the performance of the business – this facilitates the strategic functions – we can make adjustments to the budget. We can set performance goals and we can monitor them.
We can also ensure that the proper amount of estimated income taxes are paid in so that the client doesn’t have a big surprise at the end of the year.