A key hallmark of success in business is to perform better than last year, last quarter or last period. Metrics like increased revenue, profitability and decreased costs are essential metrics to every business regardless of industry. These benchmarks of success require management and owners to stay focused on essential tasks like employee management, business development and account management. This can leave little time to address day-to-day issues such as internal accounting and bookkeeping. Most executives focus their time on the strategic business issues rather than operational tasks. However, this often leads to less than optimal internal processes including financial accounting and reporting. To help clients, prospects and others understand the value of outsourced accounting; JLK Rosenberger has provided a summary of the key benefits below.
- Reliable Financial Reporting – Late, inaccurate and unreliable financial reports are often a frustrating part of what leads business managers and owners to consider outsourcing. By outsourcing the accounting function, management will have access to timely and accurate financial reports containing critical information needed when making strategic business decisions. Let’s face it, if the data used to make decisions about business operations and profitability are lacking, resulting decisions will not be as effective as desired.
- Valuable Insight – Outsourced accounting professionals are able to offer valuable insight and advice that internal employees generally cannot. Because these professionals work with companies of all sizes and across various industries, they have a depth of knowledge simply not available to others who work with only one company. Best practices on software selection, accounting processes and procedures along with practical solutions to everyday issues are some of the benefits outsourcing provides.
- Reduced Administrative Issues – An important benefit of outsourced accounting services is that it eliminates the time and resources necessary to manage accounting staff. This benefit is especially potent for companies that do not have an internal accounting department. In this case, the challenge is not only creating and defining a position for a new employee, but in effect for a whole new department. New policies, procedures and job descriptions (at a minimum) must be created and implemented to govern the accounting professional and department. For those that have an internal accounting professional, the time investment needed to find, hire and train a new employee when there is turnover can be significant.
- Scalability – As a company grows or experiences transition, an outsourced accounting provider is able to adjust the level of service offered based on these changes. This is a very useful benefit because it provides management with the level of service needed no matter their stage of growth. It eliminates the possibility that the company will incur costs for services that are simply not needed. This can be a concern for a company experiencing significant change after hiring an internal accounting resource.
Effective and timely financial reporting is essential to the decision making process. Late or inaccurate financial reports only lead to frustration and concern about the financial vitality of the enterprise. If your company is considering outsourced accounting and bookkeeping services, JLK Rosenberger can help. For additional information please call us at 818-334-8623, or click here to contact us. We look forward to speaking with you soon.