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When Should You Outsource Your Business Accounting?

As your business grows, you will need an accountant at various stages. You should consider outsourcing your business accounting to a qualified CPA. The professional can handle more than just your tax returns and payroll. When does it make sense to hire an accountant for your small business?

You may need a professional accountant or CPA to help you with the following:

  • Reviewing your business plan
  • Compliance with regulations
  • Loan application
  • Company formation

However, this does not mean you should hire a full-time accountant or get one on a retainer basis. Sometimes, you can hire a CPA for just a couple of hours to help you with the business accounting tasks you require.

Why Outsource Your Accounting

Most small business owners think they cannot afford an accountant. In a bid to save money, they opt to do accounting tasks on their own. But are they really saving money?

If you don’t want to hire an accountant, think about how long it would take you to do certain tasks (for example, account reconciliation). After this, ask yourself whether doing the task on your own will be making good use of your time.

For example, if your time is worth $100 an hour and it takes you 10 hours to do account reconciliation, that’s a cost of $1000. Plus, if you are multi-tasking, there is always the risk of making serious errors.

If you outsource time-consuming business accounting tasks to a CPA, you are more likely to pay less per hour than you would have paid yourself. You can use the hours you save to generate more revenue for your business. You will also have peace of mind when an expert is taking care of your accounting details.

Delegate Your Business Accounting to a CPA

Just like many small business owners, you like to have control. You usually set you own working hours, determine your finances, regulate your workload, and craft your business strategy. Mastering all these things can provide a sense of accomplishment.

However, doing everything on your own can hinder growth of your business. It is easy to get overworked and stressed if you are not delegating some tasks. At some point, you will have to learn to trust people to handle some of your business accounting tasks.

If you want a trusted business accounting firm you can rely on, get in touch with Litzler, Segner, Shaw, & McKenney.