Are number-crunchers crunching your bottom-line? The median, annual salary for a US accountant is a whopping $70,000. Depending on the size of your company, the numbers of accountants scales up and so do your costs.
Having local accountants is purely economic goodwill — you’re hiring American citizens. But you’re a business owner. The fate of your company and its profits are gravely important.
As you probably know, the lower the cost of your inputs, the greater your profit. Outsourced accounting services offer 3 great solutions for nourishing a business.
1. Less Costly Employees
Employees have their own set of input costs that may go overlooked. Partly because it’s not recorded by payroll but in other COGS.
The cost of onboarding a new recruit is an expensive investment. The regulations and different checks that businesses have to ensure tally up. Background checks, employment history research, and drug tests average $4,000 per new worker.
The time to bring on a new worker is considerable, too. In the US, the process can take up to 50 days on average.
There’s an axiom that’s taught in business school: time is money. It’s true.
Investing that much time into a single person is risky. If they don’t work out, it could devastate productivity.
Training is another resource hog. The monetary cost of training resources, like work manuals, is huge. So is the time-cost.
Each worker needs their own equipment, too. A computer, cubicle, and other tools have a heavyweight on the books.
Then there are benefit packages employees can opt into.
All of these input costs could be reinvested if you invest in outsourcing.
2. Scale Not an Issue with Outsourced Accounting Services
Every business owner has an aspiration of growth. It’s a fundamental goal that separates success and failure.
Growth comes at a cost, though. It’s an economies of scale issue. The bigger you become, the harder it is to operate on the same inputs (labor-force).
More employees are soon a necessity when faced with unstoppable growing potential. It sounds like a good problem to have. But, remember, onboarding a new worker costs money and time.
Time being the huge factor in scaling.
What hasn’t been discussed yet is a probationary period. On top of what can be 50 days, it could take an employee an extensive amount of time to be useful. Some companies account for six months to a year for employees to meet their potential.
A worst-case scenario, your industry’s boom dissolves. You’re now left with an unnecessary accounting team.
3. Sharpening Your Competitive Advantage
Using an outsourced team of accountants is stress relief. It takes the burden of accounting out of the equation of owning a business.
Bakery owners shouldn’t need to take accounting classes to make the town’s best pie. Custom car painters don’t need to know about credits and debits to paint a car.
Outsourcing is a way to hone your abilities. Become an industry-leader with all the extra time on your hands.
Count on Accounting Services
Owning a business is a stressful balance between profits and costs.
Outsourced accounting services may have a tough stigma, but it’s a powerful cost-cutting measure. It also allows for quickly scaling a business and time to practice your trade.
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