Green calculator lies on wooden desk with inscription Accounting outsourcing

The Ultimate Guide to Accounting Companies and Services

Do you need help with business accounting? Wondering what you should know about accounting companies and services?

Business accounting is one of the most common processes for small business owners to outsource, and for good reason. Doing so can help give small businesses access to accounting experts. It can also allow them to save money and increase productivity.

If you’re interested in using outsourced accountants, you’re in the right place. In this guide, we’ll tell you everything you need to know about accounting services and companies.

Types of Small Business Accounting Services

There are many types of accounting services that you can use in your small business. You may want to use just one of these services or you may want to outsource all of them.

Here are some of the main types of services that you may want to consider outsourcing.

Bookkeeping Services

Bookkeeping services are one of the most popular types of accounting services to outsource.

Bookkeepers input important financial data to ensure that all bank statements and payments are accurate and that all monthly expenses are deducted properly. They’ll process data related to customer and vendor invoices, credit card transactions, and more.

Tax Accounting Services

When it comes to filing taxes, tax and accounting services can be invaluable.

Tax professionals can help your business prepare and file tax returns. They can also do other things such as helping you make quarterly tax payments and filing extensions. They can even give you assistance in the case of an IRS audit.

With tax laws changing regularly, tax management services can help you to stay on top of the latest requirements. They’ll help ensure that you’re planning for taxes correctly.

Financial Reporting

Financial reporting services are also useful for many businesses.

With this type of service, accountants will create financial statements such as balance sheets, profit and loss statements, cash flow statements, and income statements. These documents and statements can give you a better insight into business finances. They’ll help you create a better plan for how to run your business and operate successfully.

These services can also help you understand financial information. They can give you guidance on what to do with the information that they give you.

Payroll Processing

Payroll processing is another type of accounting service that your business should consider using.

With this type of service, accountants will help your business track employee hours and payments. They can help with everything related to employee payments including issuing checks, submitting withholdings, and tracking payments for state and federal taxes.

CFO Services

While all of the basic accounting services listed above can be helpful for a business, outsourced chief financial officer (CFO) services are also worth considering.

A virtual CFO service can serve the same functions that a CFO would provide in a large business without having to pay the salary of a full-time CFO.

CFO services will help with the big financial picture and can aid in strategic planning and forecasting. They can also help you build your financial strategy in periods of rapid business growth and can help you navigate any financial challenges that you face.

If you want to grow strategically and get a firm grasp of your financial strategy, hiring outsourced CFO services can be a great help. You may want to learn more about FinVisor CFO if you’re thinking about hiring CFO services.

Why Hire Outsourced Accounting Services?

For many small businesses, having an in-house accountant isn’t an option, and hiring outsourced services can be a much better solution. Here are some of the main reasons why you may want to hire outsourced accounting services.

1. Reduce Business Costs

One of the top benefits of hiring an accounting service is that it can help your business save money.

Hiring an accountant or bookkeeper full-time can be costly. You’ll need to pay a salary, offer benefits, and give adequate training. This can be incredibly hard for a small business with a low budget.

By hiring outsourced services, you’ll be able to pay for only what you need. It won’t be necessary to pay a full-time salary in order to get help with your accounting needs and to get access to professionals.

2. Boost Productivity

Using outsourced accounting services can also help you to improve productivity and make better use of your time. If you try to handle accounting on your own, you can get bogged down easily and can get taken away from more important duties as a business owner.

With outsourced accounting services, you can skip the guesswork and won’t have to worry about learning how to do your own accounting. You’ll be able to stay productive while letting professional accountants worry about accounting tasks instead.

3. Get Access to Professional Guidance

When you use outsourced accounting services, you’ll get access to true professionals. You can use better accounting professionals than you may be able to use if you were hiring full-time employees instead.

These experts can serve as an extra set of eyes and can help you see your finances from another perspective. They can take an objective look at your business. They’ll help ensure that you’re approaching accounting and business finances in a smart way.

4. Meet Regulatory Requirements

Outsourced accountants know their stuff and will also help you to meet all of the latest regulatory requirements. They’ll stay on top of what’s happening in the industry.

By hiring an experienced accounting service, you can be sure that you’ll stay compliant with all of the latest tax and accounting laws and regulations. You’ll be safe in the knowledge that you won’t miss anything important.

How to Choose an Accounting Service

While understanding that an outsourced accounting service can be beneficial for your business is one thing, choosing the right one to hire is a bit more difficult. There are some important things that you should look for when choosing an accounting service to make sure that you’ll get your needs met.

Here are the top things you should look for when choosing an accounting service to hire.

Know What Your Accounting Needs Are

The first thing to do when hiring an accounting service is to make sure that you know exactly what kind of accounting assistance you need.

As mentioned above, there are multiple types of accountants and accounting services that you can choose to use. Consider the types of services that are available and decide on which ones you need the most.

If you want help with filing taxes, for example, hiring tax management services can be a good choice. However, bookkeeping services, financial reporting services, payroll processing, and other services can all be worth outsourcing as well.

Consider Specializations and Service Options

You’ll also want to find out whether an accounting firm specializes in a particular service or offers a range of services. Some accounting companies will offer access to a variety of accounting professionals. They may be able to help you with more than one type of accounting.

Getting bookkeeping services, payroll processing, and other accounting services from the same company can be more convenient and cost-effective.

Check For Relevant Experience

When choosing an accounting company to hire, you should also make sure that the accountants have relevant experience working for businesses that are similar to yours.

Look for an accounting company that has worked in your industry and with businesses of your size and revenue. This will help you ensure you’re making a good choice and will get the best accounting support that you can.

Determine Service Flexibility

It’s also important to find out how flexible the accounting service that you’re hiring will be.

Each accounting firm is different. Some of them will require short-term or long-term contracts while others will offer more flexible solutions in which there will be no commitments.

It can be a good idea to start with a more flexible service. This will give you time to determine whether using outsourced accounting services is a good choice for your business or not.

Find Out About Their Technology

You’ll also want to check what kind of technology the company uses when hiring an accounting service. Be sure that they use the latest technology and understand how to work with any software that you use for accounting.

Additionally, hiring an accounting company that offers cloud-based services can be a good idea. Some accounting services, for example, are cloud-based and offer convenient ways to store information and monitor accounting data.

Working in the cloud can also allow you to easily communicate with your accountants and share information with them. It will also minimize the need for physical space and hardware can make managing the finances of your business much easier to handle

Be sure that you look for an accounting service that offers powerful technology and cloud solutions since this can make things much more convenient for you

Check For Strong Security

In addition to offering cloud solutions for your business, be sure to look for an accounting service that prioritizes security and takes measures to protect your business’s sensitive information.

Accounting companies often have increased cybersecurity standards in place. They’ll help to protect your data and minimize the chances of a cyberattack or data breach.

Ensure that any accounting company you hire is using the latest cyber security technology and offering great protection. Cyberthreats are a real possibility these days, so it’s important that you find an accounting company that will take security seriously.

Find Out About Certification

Some accounting services may not require certification, such as basic bookkeeping tasks. However, for certain types of accounting services, it’s essential that you find certified accountants.

The more extensive your needs are, the more helpful it can be to hire an accounting firm that has certified public accountants (CPAs). Be sure to look for CPAs if you need help with more difficult tasks, such as securing loans or dealing with audits.

CPAs have to verify their skills and expertise by meeting certain educational and work requirements. They’ll have to pass the Uniform CPA Exam. They’ll also hold a Bachelor’s degree in a subject such as accounting, finance, or business administration.

Know About Their Availability

You should also think about how much availability you need when hiring an accounting service. If you’ll simply be using accounting services for filing your taxes, you may not need to talk with them often. However, it might be more important if you’ll have questions to ask them on a regular basis.

You should be sure to find out what the company’s contact options are. Ask whether they’ll be available to talk to you when you need answers to your accounting questions.

Depending on the type of services you get and the company you hire, they may or may not offer great customer service and support. You’ll want to be sure that you know what to expect before hiring them, particularly if you’ll be making a commitment to them.

Understanding How Accounting Companies and Services Can Benefit Your Business

If you run a small business, it can be a great decision to hire an outsourced accountant company to help with accounting tasks. Accounting companies can help you to save time and money and hiring one can be well worthwhile.

Be sure that you do your due diligence when choosing an accounting service to hire, however. Look for great flexibility, experience, and the right service type when hiring an accounting company.

Searching for more tips and advice for small business owners? Start reading over our blog now to find more helpful small business articles and guides.