New small businesses must make many decisions. One of those is to decide how to handle the accounting and bookkeeping chores. Here are a few accounting related questions all new businesses need to consider.
Which Type of Accounting Help is Best for New Businesses?
New businesses need an expert, not a clerk.
Accurate numbers are crucial to the success of any new business venture. An expert can provide those numbers - a clerk cannot. Yet many new small businesses skimp on the accounting side of their business by either hiring a clerk, or by trying to handle the accounting alone. Is it any wonder that so many new small businesses fail? Starting a business is like taking off in a plane. You want an expert in the cockpit to help get that plane off the ground! Once it's in the air and flying, then you can safely let somebody else pilot the plane for a while.
Similarly, new small businesses need somebody fully trained in the accounting software, acc ounting principles, and financial reporting. This will help ensure a smooth take-off for the business by providing the financial reporting, so management can make informed business decisions.
Are there Immediate and Tangible Advantages to Outsourcing?
Yes, outsourcing has several tangible and immediate advantages over hiring in-house:
1. Get immediate and expert help for the accounting tasks - no training necessary.
2. Higher level of experience = less time the manager spends overseeing the accounting tasks.
3. No potential entanglements of an employee/employer relationship.
4. Save in payroll related expenses and hassle. Why deal with any of these if you don't have to? FICA payments and reporting; Federal Withholding payments and reporting; FUTA payments and reporting; state tax payments and reporting; work comp payments and reporting. None of these apply to outsourced help; all apply to in-house help.
Which is Less Expens ive - Outsourcing or Hiring In-House?
The actual cash going out the door will probably be about the same.
For about the price of a full time clerk, the new business can buy a part time expert. Remember that there are payroll related expenses associated with hiring in-house; be sure to factor these into your decision when comparing salaries/wages.
Also, remember that the part time expert does not need to be trained or managed closely. This means that the new business saves money there too, because the part time expert is not a not a drain on management's time. This is a very tangible consideration that should be remembered.
Final Thoughts
New small businesses need immediate and expert help in the initial stages, and should spend their money wisely by hiring the best help they can afford. Get that plane off the ground quickly by hiring an expert to help!
Jennifer A. Thieme is a Certified QuickBooks ProAdvisor. Helping new businesses get off the ground is just one of the accounting-related services she offers. Visit http://www.jenniferthieme.com to find out more about her business, and what it can do for yours.
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