Outsourcing Your Business Accounting

Before starting the contents of this article, we did a short survey (word of mouth and interview) wit over 15 business owner/executives to ask just 1 simple question:

External Accountant VS Internal Accountant?

Here’s the summary response:

• 60%- External Accountant
• 10% -indifferent
• 30%- said Internal Accountant

It was not a debate session, hence no need to ask further questions as all we were looking out for was to peak to healthy businesses and be sure of how their accounting activities look like.

Do you think the 60% are making a huge business decision mistake by outsourcing their accounting? If you think they are, here is why you should rethink;

1. External Accountants sees things from the third-party perspective

Accounting is not only about basic bookkeeping. It a process that begins with getting the financials, recording the figures and ensuring the cash, assets and liabilities are properly handled. It’s not a CIA role but it’s fine if you have a CIA agent coming to checkmate your financials.

A good accountant will help you spot any hidden liabilities, such as tack liabilities and payroll liabilities so you won’t end up with nasty surprises.

It’s important to have an honest view of your business finances. You need to know which activities are generating you money and which ones are running at a loss. Only with good financial insights, you’ll be able to move your company in the right direction and improve profitability.

2. Figure Manipulations are Reduced to the minimum

In outsourcing your firm accounting, there are good chances that they are not bothered about your operational overhauling neither are they seeing you 5 days a week, but they are still working for you.

Other than human errors, they have nothing to lose showing you that some receipts were not retired or some loan(s) have not been repaid. They simply use the data they have to show you your financial standing. Suspecting your employee of manipulating figures only does one thing; SACKS YOU AS THE BOSS because the business would soon die off.

3. You Have More Time for Other things

Heard the popular Bruno Mars’ song “today I don’t feel like doing anything”? That’s exactly the feeling you get when you outsource your accounting processes.

You can technically sleep and request for your report anytime you need it. Especially when you need reports for fundraising, general meetings, investors relations and personal reflection.

Outsourcing your accounting allows you to focus on your business.

4. It is Usually Relatively Cheap

Cheap labour births poor results. So it’s usually a good administrative decision to hire good hands. But they don’t come cheap, every month something huge needs to go for the intellectual skill.

Especially hiring a skilled full-time in-house accountant can be a challenge for many SMEs. When outsourcing the management of your financial accounts you get a premium service but only pay for the time you need.

Also remember that you are competing with other brands from taking your MVP accounting staff from you, because If they do, just imagine the puzzle of getting another MVP staff. It’s sometimes harder than scouting for the next world best player while they are still in the teens.

Still, in our quest to help SMEs in Africa, we recently launched out another service in Accounteer called; Accounting as a service. It’s an outsourcing service where you enjoy the leisure of a dedicated accountant that sits on your books and gives you monthly updates on your financial standings. And with the accounting app, business operations just got easier.

Need a dedicated accountant today? Send us a mail at team@accounteer.com