Outsourcing Your Small Business Accounting
Procedures
Outsourcing small business accounting is becoming more
frequent as it allows the small business owner to concentrate on hiring and supervising marketing and operational
staff while knowing that the bookkeeping and accounting is being looked after by qualified accountants.
 Full reporting can be achieved by the accounting firm and reviewed by
management with the accountant. The accurate and timely information should promote better decisions which
result in higher profits for the company.
Staying in constant contact with the accounting firm should contribute to the small business owner
learning more on how to interpret his or her financial reports.
A detailed accounting service contract should be prepared
between the small business owner and the accounting firm. Topics covered should include time of document delivery
to the accountant; responsibility of the preparation of government filings, such as sales tax forms and payroll
remittances, etc. Late filing will result in penalties. The date the management reports will be available such as
accounts receivable and accounts payables listings which may be required by lenders on a timely basis.
A reasonable flat fee per month should be negotiated with the accounting firm. Be careful to
prepare a packing slip of the documents being received each week/month by the accounting firm, so you can keep control over them. In some cases scanned copies of
the documents will suffice. A lot of the banks are now allowing you to access a scanned copy of the cancelled
cheques on line; plus suppliers have more on line document retrieving services.
Also, the ability of computers to connect over the internet allows the data posting to take place
directly to your on site computers. This allows you more current information.
In summary, the outsourcing of your bookkeeping and accounting duties should result in cost
savings, time savings and better quality information.
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