6 Reasons to Outsource Your Accounting

Outsourced accounting advantages

Consider outsourced accounting – the best financial talent when you need it.

As an entrepreneur and business owner, you have more important things to do than keeping your own books.

There is a clear advantage to outsourcing your bookkeeping, accounting, and finance functions.  Your time is valuable and critical to the growth of your company and bringing products to market Your time is not best used in managing or performing finance and accounting or HR functions.

Put simply, an hour spent on an internal process is an hour lost to generating revenue. Additionally, outsourcing brings lower resourcing costs, better controls, and improved processes.

You may be under the impression that outsourcing reduces “control” over the accounting function. In fact, management has enhanced control when it can spend time analyzing business information instead of processing transactions and managing daily tasks. Real control is understanding revenue, costs, and profits generated by individual products/services, offices, salespeople, departments, and customers.

There are 6 key reasons to outsource your bookkeeping, accounting and finance functions:

  1. Convert fixed costs into variable costs. Hire the expertise you need, only when you need it and pay for the hours of service used.
  2. A cost effective alternative to hiring and developing accounting departments of experienced people.
  3. An easier way to undertake ad hoc projects within finance. For example, systems conversion, year-end audit preparation, tax preparation, and sales and use tax anaylsis.
  4. Offers deep technical strength to deliver comprehensive resources and best practices to deliver objective, high-value financial and management consulting. For example, software revenue recognition implementation, M&A due diligence, valuation services.
  5. Accurate financial statements on a timely basis to provide business intelligence to run the business, report to external investors and banks.
  6. Reduce the risk of exposure to tax and audit risks.

The functions of the accountant, manager/controller, and chief financial officer are needed in companies of all sizes and stages of business cycles.

Permanent Hire Outsourcing
CFO $175,000/yr
+ benefits, $35,000 at 20%
+ hiring costs*
$175/hr; $42,000/yr,
assuming 40 hrs/mo. for 6 months. No benefits or hiring costs.
Controller $125,000/yr
+ benefits, $31,250 at 25%
+ hiring costs*
$125/hr; $48,000/yr,
assuming 1 day/week for 48 weeks. No benefits or hiring costs.
Accountant $50,000/yr
+ benefits, $17,500 at 35%
+ hiring costs*
$50/hr; $19,200/yr,
assuming 1 day/week for 48 weeks. No benefits or hiring costs.

*Hiring costs can run 30% or more of salary.

Hire the expertise you need, only when you need it. Hire by the day, week, month or project.

By outsourcing, you can have the right talent, the best talent, when you need it.  Charles River CFO offers a full suite of outsourced accounting and finance solutions, completely scalable to your needs.

We Can Help

If you would like to discuss how Charles River CFO can help your company to reduce costs and benefit from part-time CFO and accounting services, please call us at (781) 431-0420 or send us an email.