The Ultimate Accountancy Services Guide
From bookkeeping to tax planning: Find out all you need to know about outsourcing your accountancy
The Ultimate Accountancy Services Guide
From bookkeeping to tax planning: Find out all you need to know about outsourcing your accountancy services.
Owning your own business is an exciting opportunity; doing what you want to do, working for yourself, and enjoying all the benefits that come with it. You know what isn’t exciting? Doing your own accounting.
It’s tedious and dull, and one wrong number can land you in a world of trouble. Outsourcing to a professional accounting service can take all of that off your plate and help keep you focused on the other areas of your business that need your attention.
Don’t know where to start? Well, you’re in the right place because you’re about to learn everything you need to know about business accounting.
What is Outsourced Accounting?
Outsourced accounting is, as the name suggests, when you outsource your business accounting needs. This can be done by an external professional or a firm specializing in business accounts. Depending on their services, this can include anything from bookkeeping to payroll and everything in between.
What Can Outsourced Accounting Help With?
Now that you know what it is, let’s find out exactly how outsourcing your accounts can help your business. Below, we’ve put together nine services you can expect from external accountants.
Bookkeeping and Financial Accounting
From financial transparency to navigating the complexities of IRS compliance (get used to reading those words; they’re coming up a lot), bookkeeping covers multiple bases. Professional accountants provide a range of bookkeeping services that include:
- Tax preparation and compliance.
- Record and monitor cash flow.
- Process payroll.
- Handle accounts payable.
- Send invoices and accounts receivable.
- Prepare financial statements.
- Record transactions.
- Prepare books for an accountant.
- Track expenses.
- Reconcile statements.
- Improve cash flow.
- Monthly reporting gives you insight into your financial health.
As you can see, bookkeeping alone is a huge task. But if you outsource it to professional accountants, that’s not your problem. In fact, this can save you up to 10 hours per week, allowing you to focus on other areas of your business.
Speaking of saving, did you know that small businesses nationwide are losing hundreds of dollars each month from poor expense tracking? Don’t be one of them; hire professionals to do your books instead!
Tax Planning and Compliance
Tax planning involves strategically organizing your finances to minimize tax liabilities while complying with the IRS’s strict regulations. This way, you can improve cash flow, increase savings, and keep your business in a healthy financial position.
Compliance is where you ensure that you adhere to all relevant laws and regulations, including on-time and accurate filing of tax returns and paying any liabilities. If you fail to do so, you could face financial penalties and the risk of an audit.
Outsourcing tax planning and compliance to professional accountants can help with numerous tasks, including:
- Corporate tax compliance.
- Tax accounting under U.S. GAAP and IFRS.
- Advice on switching to quarterly estimated payments.
- Capital gains tax planning.
- Retirement plan tax planning.
- Employee compensation planning.
- Profit distribution planning.
- Filing tax returns correctly.
- Tax risk management.
- Sales tax returns.
Most professional accountants know sales tax and IRS filings like the back of their hands. They’ll expertly navigate the rules, making sure everything is filed accurately and on time, all while maximizing refunds and minimizing penalties.
Monthly Management Accounts
Monthly management accounts are documents collected each month to give you an in-depth, up-to-date look at your business’s financial health. These reports are for internal use and allow better day-to-day decision-making.
- These reports often include:
- Profit and loss statement.
- Balance sheet (assets, liabilities, and equity).
- Cash flow statement.
- Financial key performance indicators (KPIs).
- Income statement.
- Budgets and forecasts.
- Cash flow position.
Annual Financial Statements
Also known as statutory, financial, or year-end accounts, annual financial statements are required by law and can be outsourced to professionals to ease the burden.
In the U.S., companies generally submit these filings to the Secretary of State and the IRS. Late filings can result in penalties, the size of which will depend on several factors.
These accounts typically contain a profit and loss statement and a balance sheet.
Payroll Management
If you don’t pay your staff, they’ll stop showing up fast. Payroll ensures employees are paid and handles bonuses, deductions, and taxes like Social Security and Medicare. This gets even more complicated if you have a mix of hourly, salaried, and contract employees.
If you outsource one part of your accounting, let it be payroll. You’ll thank yourself later.
Corporate and Partnership Tax Returns
Businesses must calculate and report tax liabilities annually. In the US, corporations file a Form 1120 within three months after the fiscal year-end. Missing deadlines can start with fines and escalate with additional penalties and interest.
New businesses must register with the IRS promptly, and closures must deregister properly. Electronic filings are now standard.
Self-Assessment Tax Returns
For sole proprietors or independent contractors, self-employment taxes require calculating income and expenses annually. Filing late can trigger fines, which increase over time. Outsourced accountants handle this to keep you compliant.
Audit and Assurance Services
Audit and assurance services provide stakeholders with confidence in your business’s financial reporting. Look for services that include:
- External audit.
- Financial reporting solutions.
- Governance, risk, and compliance.
- IFRS, US GAAP, and International GAAP.
- Internal audit and risk assurance.
Benefits of Outsourcing Accounting Services
Cost-Effective
Outsourcing is often far cheaper than hiring in-house. Pay-as-you-go options provide flexibility for seasonal businesses.
Access to Experts
Professional accountants navigate complex IRS and tax laws daily. Larger firms may have industry-specific experts, such as healthcare or construction accountants.
Save Time
Small business owners spend about 120 hours/year on bookkeeping. Outsourcing frees time for family, hobbies, or strategic business growth.
Enhanced Financial Accuracy
Advanced tools and software minimize human error and allow real-time access to metrics like expenses, revenue, and cash flow.
Scalability and Flexibility
Firms offer flexible services to scale with seasonal businesses, from tourism to retail.
Strategic Insights and Decision-Making
Professional accountants provide scenario planning, cash flow forecasting, and insights for expansion, product launches, or market entry.
Increased Financial Confidence
Accurate financial reports build trust with investors and stakeholders.
Consistent Support and Expertise
Dedicated teams understand your business, helping with regulatory updates and personalized advice.
Key Considerations When Selecting an Accounting Firm
Industry Experience
Seek accountants familiar with your industry.
Technology Integration
Ensure software compatibility, cloud access, AI automation, and forecasting tools.
Reputation and Reviews
Check Trustpilot, Google, and case studies.
Communication and Accessibility
Choose firms with clear response times and preferred communication methods.
Pricing and Transparency
Confirm hourly or service fees, avoiding hidden costs.
FAQs
What is business accounting?
Tracking, analyzing, and managing financial transactions, including income, expenses, taxes, and financial statements, to ensure compliance, profitability, and informed decision-making.
What are the benefits of outsourcing my accounts?
Saves time, ensures accuracy, reduces overhead, provides expert advice, and allows focus on growth.
How can I get an accountant for my business?
Tap the button on this page, answer a few questions, and receive tailored quotes for free with no obligation.
