Unlocking Financial Success: 6 Compelling Reasons to Embrace Outsourced Accounting
- September 22, 2023
- 12 min read
In the fast-paced world of business, success lies not only in innovative ideas but also in the ability to manage cash flow and financial operations.
Yet, for many passionate entrepreneurs and business owners, handling accounting tasks can be a daunting challenge that hinders growth and steals valuable time. Business owners across Australia, regardless of industry face the challenge of how to maintain a firm grip on their financial affairs, without failing under the weight of time-consuming administrative tasks.
As a business owner, you are undoubtedly familiar with the difficulties associated with handling accounting responsibilities. For some, it can seem like there is an undesirable trade-off at play: ‘grow my business’ or ‘run my business’ effectively. From complex financial reports to meticulous record-keeping, it can be overwhelming to keep up with all the numbers and regulations while also trying to focus on sales and growth. It’s not uncommon to find yourself struggling to strike a balance between these critical financial responsibilities and the day-to-day demands of running a company.
But thankfully in today’s business marketplace, some solutions enable business owners to prioritise growth, without sacrificing their financial management. We believe that the appropriate and correct outsourcing of your financial function, can amplify your business to new heights and give you as a business owner clarity and energy to pursue what truly matters!
Managing your finances whilst growing your business can be overwhelming
Isn’t “outsourcing” a dirty word?
Outsourcing of processes is not a new development. “Outsourcing” is when a business ‘contracts out’ a business process, such as accounting, to a third party. The concept is derived from the principle of comparative advantage first discussed by the 19th century economist David Ricardo.
Benefits of Outsourcing Your Accounting
Outsourcing your accounting or bookkeeping services can be a strategic decision that can improve your business performance in several ways. Here are five reasons with explanations of why you should consider outsourcing your accounting:
1. Cost-effectiveness
This is one of the major reasons for companies to outsource accounting. Outsourcing your accounting or bookkeeping services can significantly reduce costs compared to recruiting and paying employees for managing routing tasks such as accounts, payroll and general bookkeeping. When you outsource accounting services, you can avoid expenses such as salaries, benefits, training, and office space. Accounting firms such as Sleek are equipped with specialised software and expertise, allowing us to handle your financial tasks efficiently and accurately at a fraction of the cost of maintaining an internal team.
2. Focus on core business activities
Accounting is a critical function, but it may not be the core competency of your business. By outsourcing accounting tasks, you free up valuable time and resources that can be redirected towards focusing on core business activities like product development, marketing, and customer service. This enables you to enhance your business’s competitiveness and growth potential.
3. Access to specialised expertise
Professional accounting services employ experts in various financial disciplines, from complete accounting services to tax compliance and financial analysis. By outsourcing accounting services, you gain access to a pool of knowledgeable professionals with diverse skill sets and experience. This ensures that your financial matters are handled with precision and compliance with the latest regulations and accounting standards.
4. Scalability and flexibility
As your business grows, its accounting function and business operations may become more complex. Outsourcing services allow you to scale your accounting services up or down according to your business’s needs. Whether you experience seasonal fluctuations or rapid growth, an outsourced accounting provider can adapt quickly to accommodate the changes, providing a more flexible solution than maintaining an in-house team.
5. Reduced risk of errors and fraud
Professional accounting and bookkeeping services place a high degree of importance on accuracy and security in handling financial data. By outsourcing your accounting processes, you reduce the risk of costly errors and potential fraud that can occur when relying solely on internal resources. Reputable accounting firms employ strict security measures and protocols to safeguard your sensitive financial information, providing you with peace of mind.
6. Meeting key tax dates
As a business owner, you might not remember to meet the key dates in the Australian tax calendar due to work pressures or other priorities. You could thus invite penalties or fines for missing out on these dates. Professional accounting firms like Sleek will ensure that you do not default on your tax obligations and liabilities.
Example – How an outsourced accounting service can reduce your business’s tax liability
Outsourced accounting services in Australia can provide your business with many advantages, one of which is the opportunity to capitalise on the instant asset write-off scheme. This scheme is particularly useful for small businesses because it is designed to stimulate investment and growth, and allows businesses to immediately deduct the cost of eligible assets and reduce their taxable income.
When partnering with outsourced accountants in Australia, your businesses can navigate this complex tax benefit more effectively. An outsourced accountant brings expertise in Australian tax laws and regulations. The instant asset write-off thresholds and eligibility criteria can change from year to year. An experienced accountant will stay abreast of these updates. They will help your business identify which assets qualify for the deduction and ensure compliance with all requirements.
Furthermore, outsourced accountants have a deep understanding of depreciation rules. They can accurately calculate depreciation schedules and help your business maximise its deductions over time. This strategic approach ensures that your business not only benefits from an immediate reduction in taxable income but also optimises your long-term tax planning.
Outsourcing accounting services also streamlines the process of tracking and documenting asset purchases. Efficient record-keeping is crucial for submitting claims and reducing the risk of audit-related issues. An experienced accountant can implement robust systems to make sure your business maintains accurate and compliant records.
Outsourcing solutions also provide cost savings. Instead of hiring and training an in-house accounting team, your business can tap into the expertise of professionals who specialise in tax planning and compliance. This not only reduces labour costs but also frees up valuable time and resources that can be invested in core business activities.
Thus, outsourcing accounting services in Australia can be a strategic move for your business to leverage the instant asset write-off scheme. By partnering with experienced professionals, you can navigate the complexities of tax laws, optimise deductions, and ensure compliance, all while saving time and resources. This translates into a significant financial advantage for your business that can drive growth and profitability.
Why Choose Sleek
We are an Australian cloud-based accounting platform designed for businesses seeking efficient financial management. We can take on and manage your accounting with the expertise, reputation, and commitment to providing great service that suits your needs. Let’s highlight each of these aspects:
1. Transparent, all-inclusive pricing. No surprises
We offer an all-inclusive pricing that ensures you pay based on company expenses.
2. 100% online bookkeeping
We offer a proprietary cloud bookkeeping platform built for small businesses such as yours, so you don’t need to pay separately for expensive platforms
3. Expert support for all your accounting & bookkeeping needs
Sleek’s expert accountants ensure your books are always up-to-date, and taxes, management reports and financial statements are ready and filed on time, while you continue to focus on your business growth.
4. Reputation
We are well-known in the Australian accounting industry for our professionalism, reliability, and ethical practices. Many businesses and individuals have entrusted their financial matters to Sleek, and their positive reviews and long-standing client relationships speak volumes about our commitment to delivering high-quality services.
How to Easily Transfer Accounting to Sleek
Transferring accounting to Sleek can be a seamless process with these straightforward steps.
- Meet us: Schedule a meeting with our expert team or simply apply online for the services you need.
- Data review: One of our team members will check your books and data.
- Create a Sleek account: Sign up for a Sleek account and set up your company profile.
- Data migration: We’ll seamlessly migrate your data and take care of the rest!
It is as straightforward as that!
Conclusion
In conclusion, outsourcing your accounting can offer significant benefits, including cost-effectiveness, allowing you to focus on core business activities, accessing specialised expertise, providing scalability and flexibility, and reducing the risk of errors and fraud. Carefully choosing a reputable accounting partner such as Sleek can lead to improved financial management and contribute to the overall success and growth of your business.
