A small business needs to keep costs down in order to invest money back into the business. Supplies need to be in stock, advertising is important to remain competitive, and employees have to be trained well to help customers. Overhead costs continue to climb as utility rates and shop rental rates rise. There are not a lot of areas where a small business can consistently save money. One way to keep costs down is to utilize an outside small business accounting service. That will eliminate the need to have an accountant on staff, or maintain an accounting department.
Seeking accounting services for small business can save money, even compared to having only one accountant on the payroll. A company accountant has to be hired, paid, added to worker's compensation insurance, and given leave time. Equipment, space, software, and office furniture has to be allocated as well. That all adds up quickly, and many small businesses cannot afford it. Make sure the firm has experience across industries, because that makes them efficient. Services include compilations, payroll, accounts receivable and accounts payable, management reporting, year-end closing of the books, tax preparation, tax reporting, and tax planning, Pension plans and profit sharing, and collections.
Other services can include software and training support, new business start-up, and temporary services to cover vacations and vacant positions for accountants. An accountant from the firm can shadow the business employee to learn the system for a particular business. That makes the transition seamless. Sometimes the business chooses not to fill a vacant position when it realizes how much money can be saved by outsourcing accounting services. Training and software support helps a business get the most out of the accounting software programs it does have.
Services can be a la carte, delivered in a full business package, and short or long-term. Services can be provided remotely or at the business location, depending on the needs of the client. Accounting firms will also work with existing staff to provide specific services at certain times, such as tax preparation, financial planning, or starting a new business. Small businesses can save time and money by leaving the finances to an accounting firm.