Small businesses are driven by entrepreneurs, for whom the thought of technical accounting and compliance processes can often be a burdensome one.
This may be due to the loss of your valuable time that could have been better invested in growing your business, a lack of specialised accounting knowledge, or the cost consideration of employing a suitably qualified and resourceful person, especially when the workload does not yet justify employing a full-time finance professional.
Luckily, with the rapid advancement in artificial intelligence and machine learning algorithms, it is increasingly becoming a more viable option to outsource your entire accounting function through cloud accounting platforms.
Not only can outsourcing make your life easier but outsourcing your accounting function can also provide a number of benefits, apart from cost savings, and more available time to spend on your business.
When outsourcing to the right service provider, it can provide access to a more diverse skill-set, since there will likely be more than one level and department collaborating on your financial records, ranging from clerks, to managers, to directors with years of experience.
Inter-departmental teams can provide quality insights into your business at a fraction of cost associated with employing a single person with the same cumulative skill-set.
Closer collaboration with your accountant
Since information can be shared directly onto cloud accounting platforms, and documents can be attached to specific transactions, communication with your accountant is made easier, and collaboration is promoted since your accountant always has access to real-time data.
Since many traditional accounting functions (such as data capturing) can be automated through cloud platforms, it further allows your accountant to be more strategically involved with your business, rather than being confined to a back-office function.
Business can sometimes be unpredictable with external factors such as seasonal trends, economic circumstances or unforeseen events (like losing a big client) often having a major impact on small companies.
Outsourcing allows business owners to quickly adapt to these circumstances. In times of aggressive growth, you might opt for more direct strategic involvement and cash flow management or financing advice and assistance, while in difficult times, focus might be placed solely on compliance services and even further downscaled by reducing reconciliations from a weekly-basis to a monthly-basis, for instance.
Ultimately, outsourcing your financial function, either partially or in full, can provide more direct access to your accounting professional, unlocking access to skills and experience, while promoting a more collaborative relationship with your accountant.