Outsourcing accounting side of business...good idea?

**spartanic** · 06-03-2007 06:24 PM

I've heard that outsourcing the accounting side of the business is a great idea. Saves headaches on taxes and other accounting issues so that you can spend more of your time building your business. Any idea what these companies are? Perhaps H&R or a local bank maybe? Any idea how much they charge for this kind of service?

**Young Spark** · 06-03-2007 06:29 PM

It depends if your a small or big business... big business = you'd be best hiring your own accountant that way you can always have somebody on call when you need to pull records or if you need somebody to present some numbers to the board of directors (if you have one), (just my personal opinion) --- small business = why not try a CPA before H&R or a local bank... I'm all for a CPA as I am pretty sure they are a good person to speak to about some things you may not understand (but I don't know if they are on call if you need records or whatever.) But with a CPA I don't know if they'd be all for presenting the numbers to a board of directors or to investors... maybe they will but they'd charge you more possibly.

**ltressel** · 06-03-2007 09:05 PM

Spartanic,

Find a small firm that specializes in bookeeping and accounting. Lot's of times, it might help to get a referral from people who might own a small business. It may also help to visit the local chamber of commerce website for accounting business that are members.

The strive to be reputable due to their memberships and can't risk bad reputations. As far as what they cost, every one differs. Tax preparations can range from $100 and up to file your business tax-bookeeping services will also vary in price.

Good luck finding one.

LT

**sspoldir** · 06-04-2007 03:23 PM

Sure small businesses do this all the time... peruse your yellow pages for a bookeeper or ask some business owners in town who they use.

Don't confuse a bookeeper with a CPA, they aren't always the same caliber or as knowledgable about tax laws/deductions.

**nordicnomad** · 06-04-2007 04:47 PM

Even larger businesses are starting to out source a large number of administrative functions. Payroll, book keeping, HR, etc. The companies that specialize in these things can do them a lot better in most cases than in house specialists and the costs are much cheaper.

Plus if something goes wrong you have someone to sue....

**Young Spark** · 06-04-2007 05:48 PM

^^ True, but like I said, what if you need the outsourced person (assuming they are a public serving entity) to provide some numbers or present a presentation, that is the only value of a in house person who can be hired on a "per use" basis. Just my own preference, I'm sure everyone thinks differently.

**nordicnomad** · 06-04-2007 07:14 PM

Originally Posted by Young Spark

^^ True, but like I said, what if you need the outsourced person (assuming they are a public serving entity) to provide some numbers or present a presentation, that is the only value of a in house person who can be hired on a "per use" basis. Just my own preference, I'm sure everyone thinks differently.

You should have your information on hand regardless if the people doing the accounting are inhouse or outside. And typically the accountants don't present information, they just compile the information, create reports, and it's up to the MBA/manager types to interprete said information and provide recommendations and presentations to any board of directors.

Plus, since most projects involving that information can take weeks and months to develop it's not a gigantic pain in the ass to wait until someone is at the accounting firm in the morning.

**Young Spark** · 06-04-2007 11:14 PM

^^ Well yeah but sometimes you have to think outside of the box, we all have our own opinions, I'll just say mines is to have a in-house accountant and that's the recommendation I'll stick by, having an in house accountant does a lot more wonders. Plus, if you have an accountant that is public, they have other work before yours and sometimes a business manager may want their stuff done first or need it done immediately.

Just my .02 cents and I'll leave it there

**nordicnomad** · 06-05-2007 11:04 PM

No doubt, there are advantages.

Personally, I'd love to have a big inhouse accounting department with an internal auditing section that I supplemented with annual external audits. With that much attention to your business you wouldn't have to look at a whole lot except the financials because you know everything would be very accurate, very timely, and no one would be trying to steal your shirt right off your back.

The only thing is that it's very expensive, but I very much agree with you that it has advantages. I suppose that I do tend to play devils advocate at times on message boards a little too strongly for the sake of conversation. No hard feelings.

**Young Spark** · 06-06-2007 03:16 AM

^^ No hard feeling here either, just good clean discussion which I appreciate, I respect your opinions and I agree with you as well that public accountants are a good way to go as well... I was just stating that I'd prefer a in-house accountant myself but surely no start up company will have enough funds to hire a dedicated accountant from the get-go.

**paul2145r** · 06-06-2007 08:17 AM

In the beginning stages of business, I always recommend to find a good piece of accounting software (MS Accounting, Quickbooks, PeachTree, etc), learn to use it, and stick to it. If you practice good accounting in the beginning, you'll know what to look for when it is time to have someone else do it. Those that have never done nor have worried about their accounting side and just pass it off may look over mistakes and/or innaccuracies that will cost them money in the long run.