Should You Hire an Outside Accounting Firm?

Do you handle all of the accounting for your small business? If you love keeping your own books, that’s great. But if small business accounting isn’t your strength and you’re only doing it to save money, you might want to reconsider.

The Sage Small Business Accountants Usage 2013 Study found that 55% of small business owners believe outside accounting services are “critical” to the success of their business. This survey of small business owners revealed that 71% use outside accounting services, handling their corporate taxes, personal taxes, and accounting. More than half of  those who hired an outside accounting firm did so early in the life of their business. In fact, 13% did so within six months of launching their business. It certainly makes sense to hire someone who can grow with your business.

Where do you look if you want to hire a trusted professional to handle your small business accounting needs? This study revealed that 61% found their accountant through a personal referral, and 17% stated that their accountant is also a friend or family member. The key is finding someone with the right expertise and experience for your small business.

So why would a small business owner not hire an outside accounting firm? The most common reason given was that the owner preferred handling the accounting themselves. But 25% also admitted that cost was a factor.

It’s great if you like doing your own accounting. But before you continue along that path, ask yourself, “Is accounting the most effective use of my time?” It’s certainly important for you to keep an eye on your business’s finances. But as the business owner, would it be more profitable for you to focus on business development, while accounting services could easily be outsourced?
Good accounting services can save you money by recommending smart tax planning strategies for your business, as well as your personal taxes; advising you on retirement planning; helping  build value in your company so when you’re ready to sell or retire, you can get the best possible price; and helping you obtain financing, whether by taking out a small business loan or seeking investors. Accounting is one task in a small business where it pays to call in a professional.