Hiring Outsourced Accounting Services: How Does it Work?
Business accounting involves recording your company’s financial transactions and translating them into financial statements that guide your company in making decisions. Tennessee CPAs record transactions such as invoices, sales, receipts, purchases, and payments. They will handle your company’s accounts and the general ledger and translate the data into financial statements.
Although you can manage your own records and hire an accountant who can work in-house, this can be costly as you need to shoulder accounting fees and employee benefits. Also, you must give the in-house accountant bonuses and leave credits. Plus, doing your own accounting can pose an extra burden for you.
If you don’t want to deal with the stress associated with keeping records and paying an in-house accountant, you should partner with a good accounting firm. By outsourcing, you hire outside help to perform the work on your behalf. Read on to know how working with an accounting firm works:
Recognizing the Needs of Your Company
To outsource accounting to a CPA, you must recognize the needs of your company first. Can you handle record-keeping, managing your business, or fulfilling personal responsibilities at the same time? If so, you may be good without outside help. But if you have a busy schedule already and your business is growing quickly, you probably need an accountant to help you and save you headaches.
Identifying the Accounting Services You Need
After you recognize what your company needs, you can look for an accounting firm that can assist you properly. Different firms provide different services. You want to work with a firm with services that meet your requirements.
Once you choose a firm, ask to meet one of their experts. During this meeting, you should discuss the services you wish to avail and make arrangements for payment. Also, discuss how often you want the accountant to give you reports and updates. You may need an accountant to do bookkeeping and tax management.
Forwarding Your Transactions
After you and the accountant have agreed on payment and terms, you should forward them your transactions, past records, and previous books. The accountant will record all transactions and their respective accounts under credit and debit. Then, they will document these on a general ledger. The detailed accounts will be used for preparing your financial statements.
When you take advantage of outsourced accounting services, you don’t have to record receipts, purchases, sales, and expenses because the accountant will take care of them for you. After all, you are supposed to focus on running and growing your business, not directly dealing with numbers.