As a company owner, it is essential that you take good care of your financial hygiene by ensuring that your books are in order each and every year. Besides the hassle that comes with disorganized taxes, you can actually get dinged in the future if you’re ever audited and it is determined that you have accidentally filed improperly or otherwise withheld information. Many people end up having to pay government fines based on small clerical errors, this is why accountants are necessary. But do you really need to have an entire accounting department just for you or do you just need an accountant on an as-needed basis?
To help better understand when outsourcing is best for you, consider the following:
Tax season is too stressful
If you find yourself in the back room year after year pouring over receipts you absolutely need to consider how outsourcing can help you. A lot of time is spent looking over receipts to properly manage all of your financial inflow & outflow. At the same time, the extra stress burden caused by doing your own accounting work is something most people can do without. The benefits to your mental health are priceless, as are the extra time you’ll free up to better focus on how you plan on growing your business in the future.
Your books are too complex now
Growth can come at any time while running a business. It isn’t always easy to predict just how significant that growth will be or if it will change what you need from your accounting department. A big client or a sudden influx of customers can change your accounting needs significantly. When your in-house team can’t deal with the workload, it’s time to consider a service like Taxfyle tax preparation to help alleviate the burden. It’s completely up to you to decide whether or not you want the outsourcing team to deal just with low-level tasks or to get rid of the hardest stuff first. In the end, it’s dependent on what your team’s strengths are and what deficits need to be filled.
More accountants is always better
Any one employee has holes in their total level of knowledge. That’s the truth regardless of how stellar they are on a day-to-day basis. When you have more accountants working for you looking over your books it’s much more likely that they’ll pick our errors before they become a bigger issue overall. By outsourcing your work you don’t have to grow your team with a huge amount of dedicated staff, you simply rent the time of accountants to get the job done in a much more comprehensive manner. You’d be surprised just how much you might be able to learn with a little bit of outside input.
Accounting is an essential part of any business, but the accounting burden on any one business can vary wildly. Those who choose to outsource all or a portion of their accounting work are much more likely to not be pulling their hair out come tax season. What might seem like an unnecessary expense now can quickly become a regret if you end up having to owe money due to improper tax filing. At the end of the day, can you really put a price on peace of mind?