Accounting is an integral element of any business whether it is small or large. You need to know what your company’s financial health is at all times to make informed decisions at every level of the organization. This is essential for a multitude of reasons. Here are the main questions to ask yourself to get you started on making the best choices for your bottom line both today and in the future. Consider the best options and outcomes for your company.
1. Is It Cost-effective To Employ a Full-time Accountant?
If you are an entrepreneur starting up a small business, you may be the only employee. While this may be the case at the company’s inception, you are likely to add to the employee base as you grow the company. As with most heads of business, you will start adding to your team by hiring for positions that are immediately necessary and financially feasible to maintain. This roster probably does not include an accountant.
When considering whether to hire for an accountancy position, ask whether you need to fill that role in-house or whether it will be more cost-effective to outsource the role. Look up the payscale for an accountant in your area and then compare that salary range with an outsourcing option. Use this information to determine what you can afford for both the short and long term. After all, any good accountant will tell you to minimize your expenditures and maximize your gain by utilizing efficient and effective resources. Outsourcing is an effective resource, especially for small businesses.
2. Does Specialization in Accountancy Matter?
The answer to this question is a definitive and resounding yes. Having an accountant that you can rely on for expertise in the field is necessary so you don’t run afoul of tax laws. Ask yourself if you understand how to calculate payroll taxes and withholdings. If you do not, it is important to lean on someone who does. Your employees will expect someone they can contact if questions arise regarding Social Security or other payroll information.
It is essential to have access to a licensed accountant because tax accountancy is so specialized that it is administered by the US Government and the Internal Revenue Code. Your account should understand the variations between small and large businesses and what their respective accountant needs will be.
3. Does Your Account Provide All of the Necessary Services for Your Business Needs?
When you are assessing and interviewing accountancy firms for outsourcing purposes, ensure they will be able to provide you with the following services.
- Accounts Payable – Double checks the payable invoices to determine the accuracy of information. Pays invoices on time. Tracks cash flow to ensure smooth operations.
- Accounts Receivable – Verifies to ensure vendors and customers are paying in a timely fashion. Performs collections and invoice duties.
- Payroll Accounts (including expenses and accruals) – Ensures employees are being paid accurately and on time. Makes changes to employees’ account information, as needed.
- Bank Account Reconciliation – Ensure all income and expenditures are tracked accurately on monthly statements. Reconcile any errors or omissions as appropriate.
- Capital Asset Inventory – Ensures balance sheets are prepared for audits by adding and depreciating capital expenditures.
Contact KDK Accountancy Corporation Today.
Now that you know many of the reasons why outsourcing your financial accountancy needs can level up your company, contact us at (407) 759-5363 without delay. KDK Accountancy Corporation is here to guide your company on the best practices and adherence to the letter of the law regarding your financial needs. Our experts will discuss the options available to you and advise you on how to best serve your business. Let us help you make a difference.