Insights

Why and When to Outsource Accounting

PKS CPA

As companies take a hard look at their expenses, one area to examine is the accounting function. Many companies benefit from outsourcing their accounting, which can be a cost-effective way to get required expertise and flexibility without hiring a full- or part-time employee.

Business owners outsource their accounting for a number of reasons: 

Refocus on your core. One of the biggest benefits of outsourcing accounting is that it allows owners and executives to focus on the core of their business. You can breathe easier knowing that an expert is managing your accounting function.

Increased flexibility. When you outsource, there’s no need to scale your accounting department to accommodate an increase or decrease in business. There’s no wait while a job search is underway and no ramp-up time for hiring new accounting employees. Your outsourced staff is ready when you are.

Expertise. Sophisticated reporting and forecasting may be more than current staffing can provide. However, this type of reliable data is essential for growing businesses. If you outsource, you know you’re getting top-trained talent that’s up to date on the latest tax and other financial regulations. 

As for timing, outsourcing can be beneficial throughout a business lifecycle. For example:

Post-start-up. All new businesses eventually need professional financial statements and other documents for funding. Outsourcing makes this level of professionalism an integral part of your finance team. 

Employee turnover. If a finance executive is moving on or a trusted bookkeeper is retiring, the timing might be right for an outsourced replacement. 

Merger or acquisition. When you’re buying or selling, the increased stress on your internal team may call for outsourced backup services. Contracting with an outside resource—even for a limited time—can provide the assistance you need. 

Accounting is not an area to cut corners. Having the outsourced expertise you need can save you time and effort. 


PKS & Company, P. A. is a full service accounting firm with offices in Salisbury, Ocean City and Lewes that provides traditional accounting services as well as specialized services in the areas of retirement plan audits and administration, medical practice consulting, estate and trust services, fraud and forensic services and payroll services and offers financial planning and investments through PKS Investment Advisors, LLC.

© Copyright 2020. All rights reserved.
Brought to you by: PKS & Company, P.A.

Get Updates From PKS & Company, P.A.

Enter your email address to get our monthly newsletter and important updates regarding financial advice, tax code changes and more. 

MORE INSIGHTS

feature-image

Dominic M. Lagonigro, CPA

Avatar

It’s Not Too Late to Claim This Valuable Tax Credit

The CARES Act that was signed into law in early 2020 included a special tax credit designed to encourage businesses to retain employees during the c
Read Full Article
feature-image

John M. Stern, CPA/PFS

Avatar

Lowdown on Federal Tax Proposals for Businesses and Individuals

The U.S. Department of Treasury released its "Green Book" in May entitled, "General Explanation of the Biden administration's Fiscal Year 2022 Reven
Read Full Article
feature-image

Daniel M. O'Connell - CPA/PFS, CVA

Avatar

Would a Roth IRA Conversion Make Sense for You?

Roth IRA and 401(k) accounts were created in 1998. Contributions to Roth accounts are taxed on the front end at ordinary tax rates when made. But wi
Read Full Article