When is it a good time in your company's growth to hire outsourced accountants?

When your business is first starting out, you might not need an accounting team or more than one designated accountant working for you. However, as your business grows and you get more customers and more transactions, you will need to consider when to outsource financial accounting services. 

Outsourcing has become more and more popular during the last few years because it allows people to have a fully dedicated accountant team working for them without the need to pay overhead costs and manage an entire team. 

When you hire your own accounting team, you also have to spend time training them which is not very cost-effective. 

This guide will cover how to know when you need to hire outsourced accountants based on how your company is growing and the growth projection you have in the future. 

How Do I Know If I Need Outsourced Accountants? 

Not sure if you need to outsource accountants or not? It can be hard to know for sure if this is the first company or business you have owned. 

Here are some questions to ask yourself to see if you need to outsource accountants or if you can keep the simple team you currently have:

• Do you need help when it comes to current business operations or do you think you need help with accounting services as your company grows? 

• Do you waste a lot of time during the nights and weekends trying to read your company’s records or do you spend time doing accounting tasks when you can instead be doing other business operations? 

• Do you think you have margins that could be improved but you do not know how to improve them according to your current finances? 

• Do you not understand the cash requirements of your business or you are not sure how profitable your business will be over the next few years? 

Besides the list above, there are certain tasks your business will have to do when it comes to finances and accounting that you need to make sure you have full control over. 

Investors Want to See Financial Projections 

If you have investors in your business, they will want to know how much money is coming in and how much money is going out of the business. If you only have a small accounting team and no accounting team, you might not be able to clearly show investors the returns they could expect from being part of your company. 

An accounting team can prepare all your financial projects as well as show your cash flow management to investors. When you outsource your accounting needs, you have the benefit of a CFO working with you which you normally might not be able to hire and train on your own if you have limited business funds. 

Preparation for a Financial Statement Review

Whenever you have to review your finances, you will have to do a full financial statement review and an audit. Most people think these are simple processes, but they can get very complicated. 

Doing audits on your own can have a big impact on your resources. This is because you need to provide a number of different supporting documents and you need to be able to use your technology and computers to be able to create the audits and reviews. 

When you outsource your audits to an experienced accounting team, you will be able to have a team of experts on your side who have years and years of experience when it comes to making audits. 

Helps You With Tax Savings 

A tax provider or an accountant is also meant to help you with your tax deductions and financial information. A normal accountant might not have the expertise needed to look into all financial accounts and find all the tax deductions that are available to you. 

For example, an outsourced accounting team can look at all the deductions you might be able to take including very simple ones like deducting entertainment expenses or meals for the team. 

Outsourced accounting teams work with tax professionals to help ensure they can find you all the tax savings possible which is very important to your business. 

You Need Capital Investment 

If you are looking for capital investors either now or sometime in the near future, you will need to be able to provide investors with all the up-to-date financial information you have without any errors. 

You will need to make sure they are presented with all financial records and projections that are consistent and organized. 

These records and information they provide for investors can also ensure that conversations going so that everyone is on the same page and no one is lacking information about the finances of the company. 

Questions to Ask Before Outsourcing Accountants 

Sometimes, it might make more sense to hire your own accounting team, but this is rare. Outsourcing accountants works out better for everyone and it ensures that you get the help you need when it comes to your finances. 

1. Do I have enough work for a full-time accountant? If you don’t have enough work for a full-time accountant, then you definitely need to hire an outsourced accountant. 

2. Are my current resources able to do the tasks? If you currently have employees who are doing things outside of their job scope, you need to outsource an accounting team instead so that your current employees are not getting overworked and tired. 

3. What kind of experience do you need? If you need accountants with all different kinds of skill sets, it’s better to outsource a team than try to hire dozens of different people. 

Final Thoughts 

Outsourcing financial duties to an accounting team can take a lot of burden off your shoulders and it can free up your time to do other tasks that can grow your business and bring in more profits. 

You’ll also find it much easier to work with investors because you’ll have financial audits and reviews.