An article by co-written by a small business consultant discussed the various benefits from outsourcing accounting and bookkeeping. While perhaps not the most exciting or glamorous topic, the author is speaking from many years of practical experience when he writes:
“One of the major problems I run into while helping entrepreneurs is hiring the correct folks to do their accounting. I cannot overstate how important this is for every business.”
It turns out that it’s very difficult for most small businesses (and even medium-sized businesses) to find good (or even adequate) accounting and bookkeeping employees. It is hard to find the relevant technical experience and skills at a cost-effective salary. In the ultra-competitive, tight labor market in the San Francisco Bay Area, good, experienced accounting and bookkeeping employees are increasingly expensive.
One of the primary benefits of outsourcing accounting and bookkeeping is that it is usually substantially less costly than having company employees. Most companies can save 30% - 80% or more by outsourcing as compared to hiring employees.
In addition, outsourced accounting also provides improved quality due to the ability to access much more highly trained resources who are overseen by a part-time outsourced CFO. This kind of quality is usually way out of reach for a small business owner who is not outsourcing accounting.