External accounting: How to find the right accountant

Many companies outsource their bookkeeping to third parties. There are numerous reasons for this and also a lot of advantages. But an accounting firm is not just an accounting firm! So how do you know if accounting outsourcing is right for your business? What services does external accounting include? How much does the bookkeeping cost? Can you get by with just one accounting software?

In the following blog post we bring light into the darkness.

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What is external accounting?

External accounting is when a company hires an outside person or company to do bookkeeping, i.e. to record a company’s financial transactions and to prepare financial statements such as balance sheets and profit and loss accounts.

An outsourced accountant not only saves time and money by not having to fill a full-time position, but can also add value by offering specialized expertise and feeding reports directly into tax software.

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Does outsourcing accounting make sense for my company?

If you don't have the time to do the bookkeeping yourself, or if you don't have any bookkeeping experience, outsourcing can save you time and money while ensuring that financial information is accurate. Companies or external people who specialize in accounting are also more objective and usually have a lot of experience in communicating with the responsible authorities.

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Who outsources their own bookkeeping?

Accounting outsourcing is becoming more and more popular as a business strategy, especially among small and medium-sized businesses. There are several reasons why accounting outsourcing makes sense:

Accountant with special knowledge:

Your company may need services that only professionals can provide. This includes, for example, the reconciliation of complex annual financial statements or the creation of financial reports for internal or external use. In these cases, it helps to hire someone with experience in a similar role.

Companies in the growth phase:

Suppose a company is growing rapidly and has increased its sales dramatically in the last year or two. Then maybe it's time to consider outsourcing important accounting tasks that are taking up too much of your team's time and resources. This may include tax returns, payroll, and other routine tasks necessary for the smooth running of a viable business without compromising quality control standards.

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What are the advantages of outsourcing your bookkeeping?

When outsourcing your bookkeeping, the first thing that comes to mind is cost savings. Some companies, especially smaller ones, cannot afford their own accounting department or a full-time accountant. An outsourced accountant has experience with different types of companies and their systems, so they are able to help the company organize the accounting without incurring any additional costs.

Lower costs: By outsourcing the bookkeeping, up to 50% of the costs can be saved. There's no longer a need to hire a full-time accountant or spend money on software you don't need. This leaves more time to focus on growing the business and improving operations rather than dealing with paperwork or documenting finances.

Higher productivity: If you don't have to deal with the daily accounting tasks, you have more time for your core business. Because regular and accurate bookkeeping takes up a lot of time. And let's not even start with the preparation of annual financial statements and tax returns...

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How much does external accounting cost?

Outsourced accounting is affordable for many businesses, but the exact cost depends on several factors. First of all, one should consider what kind of accounting services one needs.

At Numarics, you can conveniently do your accounting digitally, via an app and powered by AI. For you, this means that you can manage your accounting on your mobile phone in the future.

You can find out everything about our services here:

Digital Accounting

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Findings

Outsourcing your bookkeeping gives you time to focus on other aspects of the business.

Money can be saved by using an experienced company that is knowledgeable about various accounting services.

The key is finding the right company for your needs.

In order to find the right accounting company, you should first think about what exactly you need.

Numarics offers innovative accounting solutions for all needs

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Seek advice

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