Every company needs Accounting services or accountants whichever the stage of growth the company is. Accounting is a professional skill that not everyone can handle and understand how to differentiate Debit and Credit. However, a well-trained accountant can figure them out and organize the company’s financial statement rapidly. There are many benefits for businesses to hire an accountant from an accounting firm. Today, let’s talk about why you should outsource your accounting to a New York accounting firm.
1. When You Are Going to Save More Money
What is the main purpose of running a company? Certainly, make money and profits. There are two ways to approach this purpose: 1) Broadening sources of income and 2) Reducing the cost and expenditure. Thus, the most important reason of outsourcing the accounting is to help you cut the cost and save more money. You do not necessary to hire one or several full-time accountant(s) for your company and pay their insurance, Medicare and other charges that the government requires. These types of charges will be even as much as 26% of the salary for the employee. On the contrary, you just need to pay for the hourly accounting services if you outsource the accounting to an accounting firm. Moreover, if you sign a long-term contract with an accounting firm, you will even obtain a discount.
2. When You Are Going to Save More Office Space
After outsourcing your company’s accounting, the only thing you need to do is offering necessary financial statements and paperwork to the accounting firm. This way, you are not necessary to set a desk or an office room for your full-time accountant. Let’s take the office rental price in New York as an example, the average monthly rent for a square foot of office space is about $6. Especially, in New York City, the rent for office space was about $60-$70 per square foot at the end of 2016. Hence, you can rent a smaller office suite to save a huge amount of money and reduce the cost of the desk, chair, telephone and other office supplies.
3. When You Are Going to Work More Efficiently
Efficient working means more productivity. If you outsource the company’s accounting, the financial statements will be managed by a skillful accountant or a team. As a result, they will always submit their work on time. Just imagine you need a particular financial statement in a hurry. The accounting firm can organize a team of accountants to help you figure it out in a short time.
4. When You Are Going to Save More Time
Time is one of the most important factors that make your business successful. Accountants from the accounting firm are well-trained and experienced so they can quick start the business. Therefore, hiring an accountant from an accounting firm can help you save more time from recruiting and training. Also, professional accountants can efficiently finish tasks without errors.
5. When You Need More Professional Insights
Outsourcing accounting to an accounting firm can help you perform your business smoothly. On one hand, the accounting firm will provide you accounting services, like auditing and tax preparation. On the other hand, it also offers more value-added services, such as financial forecasting report which can provide additional insights to help you identify issues your business is facing and the financial trends of the company.
In addition, the accountants from an accounting firm can review your business externally. What will you do if you are planning to step in a new industry that you are not familiar with? The accounting firm, which hires many experienced accountants who are proficient in different industries, will use analytical methods and offer you objective suggestions based on data. Perhaps you did not notice and consider these issues before.
With the help of this, you can gain more professional insights according to your company’s financial situation and make decisions for your business development.
6. When You Need a Tax Review during the Tax Season
It is tax season now. You may need an accountant to review your own tax forms. The accounting firm can also offer the hourly tax review service to individuals. And some of them even offer loan services that will give back your tax return without interests before the IRS does.
7. When You Need to Detect a Fraud Theft
What will you do if you realize someone is stealing the money from the company? Hiring an accountant should be the first thing that jumps into your mind. The accounting firm can offer you accounting services as a third party to detect the theft and track the transaction. They can check the financial statements and the bank account reconciliation to detect the differences. Even, if the accounting firm offers forensic accounting service, the Certified Forensic Examiners (CFE) hired by the accounting firm will detect the theft through more ways.
8. When You Need to Update the Latest Accounting Software
Hiring an accountant in-house also means you need to purchase the accounting software or tool by yourself. Moreover, you need to set a budget to update the software annually or bi-annually. However, if you outsource the accounting, this expense will no longer be your responsibility because the accounting firm will pay these charges.
All in All
There are many reasons for you to outsource the accounting for your company or hire an accountant for your personal accounting affairs. You can gain benefits more than I listed above. An accounting firm always focuses on their professional field. This way, they just need to responsible for their job duties and professional ethics. Let professionals perform the professional things.