Most business owners find it difficult or uncomfortable with the idea of releasing the responsibility of handling their business finances to someone else. B&M Financial Management Services (BMFMS) says that most small business owners wait until tax season to decide on focusing on getting their business finances in order, due to the fact that they have little time during the rest of the year to perform their accounting task more accurately or they can’t afford to hire someone. And in doing so, that process does not benefit the growth of business.
Not having accurate financial data can cause a number of problems for your business. Such as outdated financial data, inability to retrieve accurate financial reports to make better business decisions, price your products or services to increase your income, and a higher risk to be audited by the IRS.
BMFMS explains that there are many benefits to outsourcing your bookkeeping tasks; it allows small business owners the time to focus on managing and building their businesses. Outsourcing your business bookkeeping needs is a cost effective way for small businesses to save on payroll taxes, employee benefits, and reduce overhead expenses. Plus they will have accurate financial data at hand to make better business decisions which would increase productivity.
Many small business owners also worry about fraud, but according to a report released by the Association of Certified Fraud Examiners (ACFE), U.S. organizations lose an estimated seven percent of their annual revenues to fraud - but the damage is the worst among small businesses.
The study also found that check tampering and fraudulent billing were the most common of all small business fraud schemes. In fact, more than one-fourth of all small business frauds in the survey involved check tampering, making it a much more common method of fraud than in larger organizations. Check tampering commonly occurs in situations where duties over the cash disbursement function are not separated.
By outsourcing your bookkeeping and accounting operations to a professional accounting firm, you’re effectively hiring a team of experts. Professional accountants have a team of qualified staff who are experienced and knowledgeable to manage and maintain your financial records. Accounting firms like B&M Financial Management Services offer accounting packages that suite their clients needs.
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