13 Aug Outsourced Accounting and How it can Save You Money
If you are similar to most other business owners, you make it a point to stay on top of developing trends in your industry. So you can hardly be unaware of the increasing popularity of outsourced accounting services; the time it saves you and your staff from having to work on activities that don’t actually generate any revenue can be astounding. Another benefit, less often considered, is all the money it can save you in terms of expenses, should you decide to outsource. If you currently have bookkeeping or accounting employees, think of all the associated expenses:
• Salary – When you outsource, you are paying only for the time someone is actually working on your projects; not for all the extra time, week in and week out, for them to just spend time doing other tasks.
• Lost productivity – No such thing as vacation or sick leave for contracted, outsourced bookkeeping personnel! Stop losing thousands of dollars to employees who take time off, both planned and unplanned.
• Taxation expense – As an owner, you realize that salary is really only one small part of the total expense of an employee. Don’t forget to account for all the taxes you’ll have to pay on their labor.
• Workman’s compensation – It isn’t just taxes that they expect you to pay, there is a whole host of deductions, all of which you will be footing the bill for.
• Worker benefits – We’re not done yet; you still have to pay the lion’s share of the bill for your employees’ benefits, such as health insurance.
• Office space – Every new head in your office needs at least a place to sit, which usually means things like extra furniture, maybe a new computer or software license or two, and other expenses.
• Supplies – While not a major expense, don’t discount the fact that each additional person is going to consume toner, paper, electricity, and all the other minor consumables. Depending on where you live, these costs can be fairly considerable sometimes.
If you decide to take your financial work outside your own office, you really should consider taking a look at outsourced bookkeeping. Not only will your business end up generating more profits, but you will cut costs as well, making this a great option for most businesses. Speak with a qualified accountant today to learn more.