Should Small Business Outsource Bookkeeping and Accounting?

  • By: rajasri
  • Date: Jan 01, 2016

Is it a good idea for a Small Business to outsource bookkeeping and accounting services to a Chartered Professional Accountant who provides monthly Bookkeeping services?

 

With user-friendly software such as QuickBooks, many business owners feel that they should be able to do all their accounting on their own, even though they struggle to find the time and unsure they’re doing it correctly.  While basic accounting is easy to do, it takes your time away from working on your business.

 

In my view, even if you have a very small business or a single-person business, it is a good idea to have a qualified CPA to provide accounting and tax services.

 

Do I Need a Bookkeeper or an Accountant?  You may need both together.  A CPA can also act as an outsourced chief financial officer, advising an entrepreneur on financial and management strategies.  They can be the independent guidance counselors for a growing business.

 

A CPA is qualified, experienced, registered professional, and must keep current with tax laws in order to maintain the practitioner license.  Most others who call themselves as Accountants aren’t.  The CPA education is a rigorous process that takes several years to complete.  After they are licensed, CPAs also must comply with continuing education requirements in order to maintain their good standings.

 

Bookkeepers perform routine tasks and records business income and expenses into financial software and prepare financial reports that are generated by the software.  CPAs do a more detailed and thorough analysis and provide advice on tax planning and financial matters.  Chartered Professional Accountants are more prepared and put their license on the line when giving tax and financial advice.

 

CPAs who specialize in small business taxes, are more familiar with how small businesses operate and the tax laws that affect them.  They can represent you before the CRA, while many other bookkeepers and tax preparers do not even put their name on a tax return.

 

When you do the regular bookkeeping, it keeps things up-to date.  As a result, you will have a better idea about how your expenditures pile up against the budget and you do not miss important payments.

 

Also, when you visit an accountant on a monthly basis opposed to end of the year, you can see trends and can start to strategically plan about where your money is going and how you can save or improve your business.

 

Small entrepreneurs can probably outsource accounting and bookkeeping services for quite some time. If you ask me, most business can give out these tasks until their revenues rises well above the $5 to 7 million mark or until they employ about 20 employees.  Until then, most businesses usually don’t have enough work to keep a full-time bookkeeper busy every day therefore outsourcing would be more cost effective.

 

At Rajasri CPA we can perform tasks more efficiently, meet compliance requirements, and convert accounting data into useful information.  This allows you to use your time to focus on growing and managing your business.  Most new or small business owners find that full cycle accounting solution provided by Rajasri CPA is the best value for their money.  To contact Rajasri CPA who will work with you confidentially, and to make an appointment with him, please call (416) 425 – 0088 or visit www. smallbusinessaccountanttoronto.com