As a leading provider of outsourced accounting services, Accounting Resources, Inc (ARI) has seen firsthand the many benefits that outsourcing accounting can offer to start-ups.
Here are six ways outsourced accounting can help start-ups:
1. Cost savings
When compared to hiring a full-time accountant, outsourced accounting services tend to be less costly, allowing start-ups to save on overhead costs, including significantly reducing payroll and benefits costs. In addition, outsourcing eliminates the time needed to hire and train individuals and eliminates the need to purchase expensive accounting software and computer hardware since these are generally provided by the outsourcing firm.
2. Save time and resources
Owners of start-ups can free up their time to focus on their organization’s core competencies, such as product development or sales. Outsourcing allows start-ups to be more productive and efficient, which can ultimately lead to higher profitability. At ARI, we take care of routine accounting tasks such as bookkeeping, accounts payable and receivable, and financial statements, leaving business owners more time to focus on strategic decisions and growth.
3. Access to expertise
Outsourced accounting firms like ARI have a team of accounting experts with a wide range of experience and expertise. This means you have access to a breadth and depth of knowledge that may not be available with an in-house accountant. Outsourced accounting teams can also provide specialized services like tax planning, forecasting, financial analysis and reporting.
As your start-up grows, your accounting needs will likely change. Outsourced accounting can provide a scalable solution that can adapt to your changing needs. This means you don’t have to worry about hiring and training new staff as your business expands. Outsourced accounting allows start-ups to scale their accounting services up and down as needed so start-ups can easily adjust their accounting services to suit their needs and growth trajectory. This helps start-ups adapt to market changes, expand their operations, and compete more effectively with larger businesses.
5. Reduced risk
With an outsourced accounting team, you can reduce the possibility of errors, fraud, and other financial risks. ARI for example, has stringent internal controls and procedures in place to ensure the accuracy and integrity of your financial data. These procedures help to prevent financial irregularities, which can help start-ups avoid costly mistakes.
6. Improved financial reporting
Outsourced accounting provides access to professional accounting expertise, which can improve the accuracy and quality of financial reporting. Start-ups can also benefit from timely and accurate financial statements, which can help them make better business decisions in real time.
ARI has a team of experts who have specialized knowledge and experience in accounting, tax regulations and financial reporting. Our professionals are well-equipped to handle complex accounting tasks, leaving start-ups to focus on core business activities that drive revenue and growth.
Outsourced accounting can provide start-ups with cost savings, time savings, improved financial reporting, scalability, and reduced risk. These benefits can help establish good business habits from the start while allowing them to focus on their core competencies. Outsourcing can help you direct your attention on growth and achieve long-term business success.
If you are considering outsourcing your accounting function, contact us to explore if we are the right fit for your needs.
In the meantime, discover how one of our clients doubled revenue by outsourcing their accounting function.