Small business entrepreneurs are always short on time because they are responsible for almost everything – marketing, sales, promotion, hiring, and more. Besides managing their business, the owners also need to take care of any obstacles that may come their way.
Accounting is essential for running a business smoothly. Considering how important finance can be for small businesses, it is essential that the accounting books are in responsible hands. With a squeezed budget, most start-ups and small business owners find it challenging to hire a skilled accountant to manage daily cash transactions, bank account operations, create sale/purchase invoices, analyse financial data, and prepare financial statements.
Accounts and bookkeeping are something that cannot be taken for granted. There are several laws that need to be adhered to. For instance, wrong calculations of taxes can lead to lawsuits and heavy fines. Outsourcing accounting services for small businesses can help in solving all these problems. It allows you to focus on the growth of your business and gives you more financial control.
Here is how outsourcing the accounting service of your business can help your business grow:
1. Increases Cash Flow
A basic but significant strategy of a good business is to take charge of the cash flow. Keeping track of all the money that comes in and goes out allows business owners to look for ways to save their money in different ways, including cutting down operational costs, clearing bills on time, calculating proper taxes, , chasing down delinquent invoices, MIS reports to take a strategic decisionand more. Outsourcing accounting services in India to a third-party service provider keeps you updated with the cash flow of your business. You have a clear understanding of where your company stands and allow you to make intelligent decisions that will help bring in more cash for your business.
2. Saves from Unnecessary Penalties
One of the most stressful times for small business owners is the tax season. With so much on their plate, most entrepreneurs hardly have time to take care of the computation of taxes and filing of returns. Most owners will offload this responsibility to regular employees without any experience in accounting. This makes the business vulnerable to both non-compliance and penalties. The tax department can charge you between 50% to 200% of the tax evaded if you underreport or misreport your income. Owners also tend to miss out on tax benefits, rebates and deductibles. The returns can be further used in the business for other important work.
Associating with a reliable third-party service provider for accounts will simplify the tax preparation, filing of returns and ensure compliances is taken care off. A good accounting service provider will work with you to fulfil the tax obligations and ensure your tax returns are accurate . All this saves a lot of money and time.
3. Outsourced Accounting Services Saves Precious Time
Accounting is complex and takes up a lot of time. The precious time that goes into taking care of accounting books can be utilized in performing other business tasks, such as exploring growth opportunities for business, marketing, etc. Small businesses and start-ups need growth and while accounting is important, it is best that the owners use their talent to focus on other things to keep their business running successfully. Hiring professional accounting service providers will allow business owners to work with a clear mind. With the accounting part being taken care of by professionals, it would be easier to concentrate on how to grow the business.
4. Outsourced Accounting Services are Scalable
As the business grows, the owners will no longer be able to take care of the accounts. Bigger business also means more sales and purchases, cash transactions, bank transactions, compliances, etc. They will have to employ a skilled accountant to take care of the business's accounts. However, if you outsource your accounts to a third-party service provider, you don't have to worry about hiring extra individuals. The outsourced accounting services provider already has a scalable team ready to take care of a growing or a bigger business. You don't have to worry about recruiting and managing full-time accountants (you will also have to bear their expenses, such as employee benefits).
5. Better Business Analysis
Accurate books give you precise insights into the strengths and weaknesses of your business. As your business expands and grows, you need better analytics of what is happening in your business. Even your investors need to see clear and accurate books. With an outsourced accounting team at your disposal, you can have accurate insights into the strengths and weaknesses of your business – these are crucial for strategic growth. Even your investors or banks from whom you would like to secure investments would have access to detailed financial reports of your business. With all the records up to date, you will be easily able to show where your business stands and its future growth prospects.
7. Eradicate Time and Costs of Hiring Processes
Recruitment is a tedious task and it takes a fair amount of resources to manage– recruitment plans, selection process, interviews, etc. It costs your business both funds and time. You will also have to manage the employees that you have hired. The time that you dedicate to hiring could have been used in ways that would have been fruitful for the business. Moreover, a wrong hiring can damage the business – both in terms of monetary and reputation. The job of an accountant(s) should be done by skilled people only because even a small mistake could prove to be disastrous for the organization, especially when it is a start-up or small business. Outsourcing the accounting services can eliminate all this and you would be able to save both time and money.
8. Automated Technologies Have Many Benefits
A small business that is looking for stability and growth may not want to invest in expensive automated technologies for accounts. Excel sheets or manual accounting are not trustworthy and are often erroneous. However, outsourcing their accounting would allow them access to the latest software and technologies that would keep their accounts error-free. Having error-free books, the software can also generate various types of reports in no time. They also allow to detect any potential errors related to accounts so they can be resolved at an early stage. It eliminates all problems of any internal fraud that may have happened if an internal employee managed the accounts. Accounting service providers are always well-equipped with all types of automated technologies because they specialize in providing accounting services.
Outsourced Accounting Services from Paysquare Will Help Your Small Business
Accounting is crucial for all types of business, and it is also significant that it be handled by the experts for business owners to have better financial control. Therefore, you must ensure that you have the right people to take care of your business accounts. Considering the intricacies of bookkeeping and the importance of having it taken care of by skilled people, small businesses should outsource their accounting services to a reliable service provider like Paysquare. We have been providing services for accounting and bookkeeping to our clients in India . Paysquare prides itself on having a team of knowledgeable and experienced accountants who will take care of your business's books. Call us to learn how we can help manage your accounts so you can concentrate on the growth and expansion of your business.