Accounting is a necessary part of any business, but some industries will find that it’s even more complex than they’d initially thought. SaaS businesses will need to consider whether it’s worth the time and money to hire in-house accounting staff or whether they want to outsource this service.
Outsourcing your accounting can be highly beneficial for many reasons, from saving time to saving money. For more details on why your SaaS business might want to think about outsourcing your accounting, keep reading:
Hire Faster
One of the major benefits to outsourcing your accounting is that it often will allow businesses to hire the help they need much sooner. It can be quite expensive to bring on a full-time accountant, especially if you don’t have the workload to keep them busy five days a week. Instead, you might want to consider outsourcing your accounting needs to a firm that’s a bit more flexible and affordable.
This will allow you to hire someone part-time and still get all of the experience you need from a more seasoned employee. Because you’ll only be hiring someone for the exact amount of work that you need, you can often employ them sooner in your business journey.
Not to mention, you could save quite a bit by outsourcing these services compared to the costs of a salary and benefits for a full-time employee.
More Experience
Think about how many people and businesses an outsourced accountant has experience working with over their years. When you select an experienced accountant who does this type of work full-time, you’re also tapping into their wellspring of knowledge. They’ll be able to guide you to resolutions for almost any problem you may face, such as issues with cash flow, forecasting, or budgeting.
If you hire an in-house accountant, they may not have the same breadth of knowledge and the same types of experiences as a full-time accountant who works with many SaaS businesses on a daily basis.
Better Accounting Software
If you’re only managing a single business, it may not make sense for you to invest in top-of-the-line accounting software. These programs can often be quite expensive, and the learning curve for learning how to use them is steep. By outsourcing your accounting, your SaaS business will be able to gain access to some of these more sophisticated programs via your accounting firm.
Why does the software they use matter? Simply put, the right accounting software can quickly minimize the risk of human errors, show more detailed reports, and improve efficiency, which will help you make more informed financial decisions for your company.
Get Records on Time
If you want your accounting to be by the book, then you should ensure that you get accurate records in a timely manner. An in-house accountant might get sidetracked by other concerns that need to be addressed, meaning that your business reports may not get pulled or tracked the way they should. By outsourcing your accounting, you will be guaranteed to receive any and all reports in a timely manner.
This can allow you to make the best decisions at the right time. An accountant can even help you stay on budget with timely reviews of your finances. If you need guidance making an important decision, be sure to inquire with your accountant about the state of your finances upfront.
Scaling Your Business
The hope of every business owner is to scale their SaaS company as the years pass. If you have an in-house employee handling your finances, you might need to hire an entire department to assist with having the accounting done in a timely manner. This will present issues of needing to pay for the overhead of additional employees, investment in advanced accounting software, and more. There’s an easier way to save on some of these costs.
Instead, you could outsource your accounting and financial management to a company that specializes in these services. They’ll already have a team in place to handle an increased workload. As a result, it will be much easier to scale up and down with a well-established team already in place and waiting for more work.
More Visibility into Finances
Do you think that you might want to raise more capital for your business or invest in new tech that could make your employees’ jobs a bit easier? When you outsource your accounting work, you can rest assured that your financial picture will always be represented in a format that you will be able to easily read and understand. If you don’t understand something, you can always ask for more details and insight into what those reports are indicating.
An outsourced accountant can help you make wise decisions regarding the cash flow of your SaaS business. Part of this will show you where you can cut spending or maximize investments. They can work with you to create a more functional budget, so you’ll always know what’s affordable and where you might need to cut back.
Audit Preparation
No matter what type of business you run, the prospect of getting audited at the end of the tax year looms largely. If your SaaS business does indeed get audited, you can rest assured that you’ll be in good hands with an outsourced accountant; you’ll have someone specific you can turn to in order to help you navigate the process.
One of the biggest reasons to outsource your accounting is for your own peace of mind. If you get a notice that you’re going to be audited, you’ll be able to rest easy knowing that your finances are in good shape. You’ll have an experienced team of professionals behind you to help your business navigate whatever comes next.
Things will move much smoother with an accountant at your disposal. On the other hand, your in-house accountant may not have the experience to deal with an audit, and it could produce more of a headache than anything else. Always be sure to have a qualified professional on your side when facing any type of audit.
Hiring Professional Accountants
As you’ve read, there are some valid reasons to consider outsourcing your accounting; it can save you time and money as well as give you peace of mind. You need the help of a team of qualified professionals to manage your accounting for SaaS companies. Compass Accounting can help you get the services you need at a price you can afford. Call us today to get the peace of mind that comes from knowing your accounting is in good hands!