It’s official: New Zealand is the country with the most business-friendly environment according to World Bank’s 2019 Doing Businessreport, with Singapore and Denmark coming in second and third place respectively. If you ever wondered where the most optimal place to launch your startup was, well, now you know!
Nevertheless, even a high ease-of-doing-business ranking won’t save you from the bore that is accounting. A lot of times, small business owners are forced to juggle many a job at a time to keep their small business alive. Yet, accounting is one of those jobs that not only require a lot of time but expertise as well.
The solution: instead of playing hot potato with your employees, outsource it to another company.
Here are some five essential reasons why you should do just that.
1. Focus on Core Business Functions
Not a whole lot of small businesses out there can boast having accounting as a core business function. In general, this includes tasks such as bookkeeping, filing tax returns, financial planning, and so on; vital tasks for any business no doubt.
Now, what all these non-essential tasks have in common is — they’re incredibly time-consuming! In other words, the time spent filling spreadsheets could’ve been put to better use; for instance, growing and developing your small business. That is why the general rule of thumb is to always outsource non-essential business processes to other companies. That way you can focus on doing what you do best.
2. Saves on Costs
Onboarding a new employee is not only a matter of time but of money as well. Even hiring a single in-house accountant — let alone a whole department — brings a sea of new expenses such as their salary, additional insurance coverage, new equipment, software, and so on. According to Investopedia, companies spend around $1,886 per year on training for each individual employee.
By outsourcing your accounting department, you effectively eliminate all the expenses usually connected with the training and recruitment of new employees. Additionally, you get to reinvest all that money you saved up back into your business.
3. A Wealth of Small Business Advice
Outsourcing accounting experts brings a plethora of knowledge and expertise to your small business. In general, this will allow them to advise you on many a topic (not just accounting), including growth, business forecasting, business planning, etc., all crucial for the success of your new enterprise. Hence, look for a reliable local accounting agency that you can work closely with, that can also act as a mentor for your business. For instance, Enable Business Chartered Accountants in New Zealand if you’re from the country that topped our ease of business list at the beginning of this article; or if you simply wish to launch your new startup there.
4. Access to Accounting Software
One of the major perks of outsourcing an accountant for your small business is that they come with their own set of accounting software. As a layman, choosing the right software is not only difficult but expensive as well; not to mention that you first need to learn how to operate it correctly. Packages can range anywhere from $50 to $5,000 per month, depending on your business needs.
However, for an expert accountant, it’s a piece of cake and they already have all the apps they need.
As a result, you won’t end up messing your financial entries due to inexperience with said apps and you’ll focus your attention on more important tasks instead.
Accountants are masters of tax deduction. As such, they know all the delicate intricacies of tax law and the different ways your business can benefit from said ‘discounts,’ earning you more money in the process.
Plus, this also allows you to skip your ‘quality-time’ with spreadsheets during tax season and focus on more important parts of your business, without any added pressure from these strict deadlines.
Look to get a more meaningful relationship out of your accountant instead of them just doing your annual tax returns and financial statements. That way, you not only get a financial expert but a road guide for your business as well.