Benefits Of Outsourcing Accounting Services For SMBs in BC

• Are tasks like financial records maintenance, payroll processing, and tax preparation hindering your business growth?
• Have you faced challenges in filing business tax returns on time and accurately? 
• Do you need more accounting and bookkeeping knowledge and/or lack of time?

If your answer to any of the above is “yes!”, you are not alone. Many small business owners in Canada face similar challenges. By partnering with an accounting firm in British Columbia you can focus on growing your business by doing what you love and following your passion.  In this article, we will help you understand and simplify your decision-making by diving deep into what outsourced accounting is and how your SMB can benefit from it. Let’s start from the basics first.  

What is outsourced accounting?

Outsourced accounting is known when a business contracts with an accounting firm to let it handle its accounting needs. In outsourced accounting, a professional team of accountants manages all of a company's accounting needs, which may include:

• Maintaining account books on a routine basis
• Accounts Receivables and Payables
• Bank Reconciliation
• Financial statement preparation
• Payroll handling
• Tax Preparation
• CRA compliance and audit support
• Insightful reports for effective business decisions

Why should SMBs outsource accounting?

Many small businesses in Canada face different accounting challenges from poor record-keeping to inconsistent cash flow when trying to grow their business or keep it stable. Accounting mistakes can lead to poor financial decisions or can hinder business growth. Outsourcing accounting to a team of experienced accountants can help you overcome these challenges easily while being cost-effective, a few examples of the challenges faced by small business owners are listed below:

• Payroll processing
• Bank reconciliation
• Pilled-up bookkeeping
• Limited cash flow visibility
• Incorrect/delayed tax filing
• Missed tax savings
• CRA audits and non-compliance

Benefits

As a small business owner, there are numerous benefits of outsourcing accounting to a professional team, such as access to a team of expert accountants and their valuable insights, time savings, money savings, and much more. Many small business owners in Canada assume they don’t need the help of professional accountants and can handle accounting on their own, this is not entirely false however, with the help of a team of CPAs you can save more money and allocate funds, resources and time to grow your business.  

Access to a team of experts

DIY accounting with limited accounting knowledge can have serious business repercussions, while hiring an in-house accountant may be unaffordable and perhaps not required for most SMBs, they may have limited skills and knowledge. Partnering with an accounting firm gives you access to a team of experienced accountants who are well-versed in your industry, at a fraction of the cost. An experienced team of CPAs can provide relevant and effective inputs through personalized accounting services, tailored for your business. A team of professional accountants with diverse expertise can handle various financial tasks efficiently like bookkeeping, financial audits, tax planning, and much more which is not possible otherwise. To ensure compliance with the CRA and accuracy, accounting firms are always updated with the latest rules and regulations, and they follow the industry's best practices.  

Time savings and efficiency

As a small business owner, you have too many things to manage anyway and unless you have the time, expertise, and knowledge to handle the bookkeeping, payroll processing, tax filing, responding to CRA audits, etc, you would be better off hiring a professional team of accountants. An experienced CPA firm in BC can handle complex tasks like compliance with intricate Canadian laws, expense management, employee wage management, and other financial aspects very swiftly even when your business gains momentum.   Additionally, working with an accounting firm eliminates the costs of hiring and training in-house accountants, this can include office space, salaries, and other benefits.  

Strategic decision-making

To understand the true picture of your business’s financial landscape you will need reports that are detailed, accurate, and up-to-date. These reports can empower you to make strategic decisions that can help you optimize business plans for prosperity. As a business owner from time to time, you will require advice on various financial aspects of your business and by working with an accounting firm you will have access to insights from multiple experts specializing in their niche.   Important business decisions require precise data, and by working with professionals you will have financial reports ready at your fingertips whenever you need them. As a small business owner, you should focus on making the right decisions rather than chasing the data yourself.  

Better scalability

As a business gains momentum it also requires more effort in accounting, outsourcing allows it to easily adjust services without the hassle of recruitment when necessary or downsizing when the services are not needed. It is much easier to work with an accounting firm in British Columbia rather than look for the right person with the right experience while staying within your budget. Hiring or changing in-house resources can be quite cumbersome however, by working with an accounting firm you will be able to collaborate with the same team of professionals for a much longer time.  

Conclusion

Outsourced accounting provides a plethora of benefits that go beyond mere cost savings. Access to expert insights enhances decision-making and allows for scalability as your business shifts its gears. You can be stress-free and focus on running your business when you know your finances are in the hands of a team of experienced CPAs in the Lower Mainland. You did not start your business to do accounting you started it out of your passion for something. So don’t let accounting hinder your business growth. You can keep doing what you love while we can fulfill your accounting needs. Contact us today to see how our small business accounting services in BC can help your business grow.