Does running your small or mid-sized business (SMB) sometimes feel like you’re a one-person circus act, juggling flaming torches while trying to balance on a unicycle? Many SMB owners feel exactly the same way about their finances. You’re bogged down by accounting complexities, constantly worried about making a mistake, and losing precious time that you could be investing elsewhere.
That’s why so many savvy businesses are outsourcing their accounting. They see it as more than just offloading tasks. It’s a strategic decision to strengthen and future-proof their business. So, let’s pull back the curtain and see how bringing in a financial partner can be a total game-changer for SMBs.
10 Big Wins for SMBs When Outsourcing Accounting Services
Handing over your financials to a dedicated team unlocks a whole trove of benefits that can help your business thrive.
1. Reclaim Your Most Valuable Asset: Time
Think about it: what could you achieve with an extra 5, 10, or 20 hours added to your month? When you delegate your accounting, you and your team are free to concentrate fully on your core business functions. You can use it on activities that actually drive revenue, spark innovation, and make your customers happy.
2. It’s Kinder to Your Bottom Line
Hiring an in-house accountant might seem like a cost-effective solution, but the truth is, costs can quickly add up. Not only do you have to pay their salary and benefits, but there are also additional expenses such as training, software, and equipment. By outsourcing your accounting needs, you pay only for the services you need when you need them.
3. Access a Whole Team of Financial Pros
Outsourcing gives you access to the combined knowledge of an entire team, not just that of a single individual. At Prithi Daswani, CPA, you benefit from the experience and skills of certified public accountants and other seasoned professionals. This gives you a deeper pool of support for financial questions and strategic planning, all while avoiding costs related to hiring your own people.
Want to know how we helped a physician cut his 70-hour workweek to just 30 hours, triple his income, and reclaim valuable family time, while creating the possibility of retirement by the age of 40?
4. Boost Your Accuracy and Stay Compliant
Accounting mistakes can be incredibly stressful and costly. Outsourced accounting services use refined and often automated processes designed to minimize errors, prevent missed deadlines, and help you navigate complex government regulations. Professional firms ensure your books are precise and fully compliant, taking the burden of financial management off your shoulders.
5. Sleep Better at Night
What’s the value of knowing your financials are in capable hands? For most SMB owners, it’s priceless. Handing off the responsibility to a dedicated team alleviates the constant worry about accuracy, deadlines, and compliance. With this peace of mind, you can focus your mental energy on growth and innovation.
6. Get Support That Grows with You
Your business is meant for growth, which means your accounting support should be able to keep up. Outsourcing offers flexible solutions that can effortlessly adapt as your business evolves. Whether you’re just starting out or expanding rapidly and need more sophisticated support, such as a virtual chief financial officer (virtual CFO), an outsourced partner can scale their services right alongside you.
7. Leverage Top-Tier Tech Without the Price Tag
Reputable outsourced firms come equipped with industry-leading accounting software such as QuickBooks and Xero. You get to benefit from these powerful tools and the efficient workflows the firm has already developed, all without the direct investment in software licenses, training, and maintenance.
8. Gain a Strategic Financial Partner
For many growing businesses, virtual CFO or vCFO services can be transformative. These services elevate your accounting from simple recordkeeping to a forward-thinking financial strategy.
A vCFO brings invaluable benefits, including strategic budgeting, precise financial forecasting, and efficient cash flow management. These tools empower you with the clarity and confidence to make smarter, more informed decisions.
9. Strengthen Your Data Security
In a world where data is currency, protecting your financial information is crucial. Professional accounting firms understand this and typically implement robust internal controls and security protocols. These measures provide an essential layer of protection for sensitive financial data that can be difficult for an SMB to replicate on its own.
10. Focus on What You’re Passionate About
Why did you start your business? It probably wasn’t to spend late nights staring at spreadsheets. By delegating your accounting, you free yourself to focus on the mission that inspired you in the first place. You can get back to solving problems for your customers and growing the business you love.
Bonus #1: Leverage the Knowledge of Other Business Owners
CPAs often work with a wide variety of business owners across different industries. This exposure gives them a broader view of what’s working—and what’s not. Consider this as a “backstage pass” as to what other business owners are doing. A seasoned CPA can go beyond textbook advice and say, “Here’s how other businesses like yours have structured their payroll, managed cash flow, or implemented tax-saving strategies—and here’s what the outcome was.” This means your business decisions can be informed by patterns, trends, and lessons learned from a much larger dataset than your own.
Bonus #2: Take Advantage of Time-Sensitive Opportunities
In business, timing is everything. Whether it’s acting on a real estate investment, qualifying for a tax credit, or applying for a low-interest loan, opportunities often come with tight deadlines. Businesses with accurate financials that can generate requested information, tend to capitalize on such opportunities. For example, when an ideal property is available or a tax credit is introduced, lenders or governments will want to see current financial statements, payroll data, and forecasts. This was especially true during the COVID-19 pandemic. Programs such as the Paycheck Protection Program (“PPP”), SBA EIDL loans, and the Employee Retention Credit (“ERC”) were rolled out at record speed. Business owners with accurate, timely financials and payroll reports were able to submit complete applications within days — often securing forgivable loans or cash-flow-saving credits within weeks.
Is Outsourcing the Right Move for Your Business?
Outsourcing may or may not be the right move for your SMB. It ultimately depends on your specific needs, resources, and goals. However, if you find yourself in any of the following situations, outsourcing is definitely worth considering:
- Your accounting tasks have become too time-consuming or are a major source of stress.
- You need immediate access to certain skills but lack the necessary in-house resources to get them.
- You require strategic advice and scalability but are looking for a more affordable option than a full-time CFO.
- Your industry has unique complexities and you need insights from professionals who understand them.
For a little more clarity, ask yourself:
- How much time do I dedicate to managing my finances?
- Am I confident in the accuracy of my accounting records?
- Do I have the information necessary to make informed, strategic decisions?
- How can better financial management help me achieve my goals?
By answering these questions, you can identify the areas of financial management that cause you stress. Doing so can help you determine what specific areas you may need assistance with and what type of support would best suit your needs.
If you find that you really struggle with accounting tasks and don’t feel confident in your financial accuracy, Prithi Daswani, CPA, is here to help. Schedule a consultation with us today, and explore how our tailored accounting solutions can add value to your SMB while providing peace of mind.