Small Business Accounting Twin Falls
There are good reasons to outsource small business accounting in Twin Falls
The concept of corporate outsourcing – hiring a third party to perform work that had previously been done by company staff – is relatively recent, becoming popular only in the last twenty years or so. However, the concept is nothing new for small business owners. There are almost 650,000 CPAs in the US, and most of them provide their services to small businesses, typically on a contract basis. Most small businesses that have been in business more than a few years, hire an accountant to perform quarterly and year-end tax filings.
Even with the introduction of powerful web-based accounting solutions designed to make the small business owner self-sufficient, companies continue to hire independent CPAs – for good reasons.
The Value of Small Business Accounting Programs
No one denies the inherent value of the new accounting software programs on the market. Your company should manage its financial transactions using one of the leading solutions. However, despite the claims of their marketing campaigns, those programs are not so simple than anyone can use them with minimal training. In fact, to use one of those programs to manage an average small business, one with between, say, 5 and 50 employees would require that a staff member have extensive training on the program. And you should probably train two employees in case one quits.
Even if those two workers also performed other tasks, together their time devoted to accounting would amount to the cost of a full-time bookkeeper. Instead, smart companies will purchase the accounting software and train workers to enter data into the program in the course of regular business functions, but will contract with a CPA to audit the data, produce income statements and balance sheets, and file all tax reports.
Outsourcing Small Business Accounting Let’s You Focus on Your Business
The basic value proposition of outsourcing applies to the use of a CPA firm specializing in small business accounting. Twin Falls has many such firms and using their services will allow your staff to focus on more critical company operations, especially those that produce revenue or customer satisfaction.
It isn’t that accounting is not an important part of your business; it is. However, for the typical small business accounting is a distraction that doesn’t improve operations. You can’t perform the accounting functions better, faster, or probably, less expensively that an outside firm, so why bother?
Outsource Small Business Accounting to Be More Competitive
By hiring a small business accounting firm, Twin Falls companies will run more efficiently and become more competitive. A competent CPA will produce reports that let you see which products, services, or customers generate most of your revenue. The CPA enables you to see where you are spending money and identifies any red flags indicating waste or inefficiency. You will have the information you need to accurately price your products to cover costs and generate the desired profit margins, and if the market won’t let you charge enough for a product, you’ll learn that too.
Ruth Pierce, Founder of Stevens Pierce & Associates, CPAs, a Twin Falls professional practice that specializes in small business accounting, describes the reason clients choose the firm: “In order to perform small business accounting services, a company must make an upfront and ongoing investment in education and training. And typically, that investment is in a person who can be gone tomorrow. Our clients, in essence, share those costs on a pro rata basis by using our services. They only pay for the services they receive, and we’re available whenever they need us. Rather than worry about accounting or managing another employee, our clients are free to devote their energies to running their business.”
Unfortunately, it appears the value proposition of small business accounting is only going to become more profitable. The financial and debt crisis has governments around the world scrambling to come up with more tax revenue. That means more regulations and reports to more government agencies prying into your company’s financial records. Trying to stay abreast of those regulations is a full time job in itself and the risks of non-compliance are high. The easy, cost-effective and risk-averse solution is to engage a CPA firm.