Today, businesses compete in more competitive, fast-moving markets than ever before. Trends shift overnight, disruption is constantly threatening established markets, and new competitors are constantly emerging. Safe to say, the business leaders of today don’t have their challenges to seek.
Effectively navigating these increasingly competitive industries demands that entrepreneurs and executives have access to precise, timely, financial information. Without reliable financial insights, business leaders are effectively guessing every time they make a major decision, from hiring a new employee to opening a new location.
But developing those insights is no easy task. Many businesses under-invest in accounting and finance, instead electing just to do the bare minimum to ensure that taxes are filed on time and investors are kept happy. That’s a behavior that holds businesses back, blinding leaders to potential growth opportunities and resulting in significant uncertainty in dealing with major financial issues.
There’s a reason many businesses lack the accounting and finance expertise they require to grow: building out these capabilities is complex, expensive, and time-consuming. Many Small to Midsize Businesses (SMBs) lack the resources to recruit, resource, and staff an in-house accounting and finance team. But at the same time, skating by with a part-time bookkeeper doesn’t cut it. So, what’s the solution?
Enter outsourced accounting firms. By partnering with an outsourced accounting firm, businesses can delegate all of their accounting and finance tasks to an experienced third-party service provider. This produces all kinds of benefits, from more accurate bookkeeping to access to a network of sophisticated finance professionals.
In choosing an outsourced accounting firm, it’s important to keep in mind that one thing can amplify all these benefits: choosing an outsourced accounting partner with direct knowledge of your local business environment.
But what exactly is an outsourced accounting firm, and how does working with an outsourced accounting firm based in Indiana benefit Indiana businesses? Read on as we explore the answers to those questions and more.
Outsourced Accounting Explained
Every business leader is familiar with the process of accounting: the process of recording and analyzing your business’s financial transactions. Often, the default belief is that this has to be handled in-house, either by using a basic Quickbooks setup, hiring a bookkeeper, or even hiring a full-time accountant.
This solution is often suboptimal for many businesses, leaving their accounts disorganized, out of date, and inaccurate. Accounting is complex and if a business lacks the expertise to build the correct accounting systems and processes, it will likely run into difficulties managing its finances.
Working with an outsourced accounting firm enables businesses to delegate either some, or all, of their accounting and bookkeeping tasks to an external vendor. These services, which are typically provided by CPA firms, take a tried and tested approach to building accounting frameworks that enable businesses to gain a clearer picture of their financial performance.
Outsourced accounting services, which are also known as Client Accounting Services (CAS), typically come in three tiers:
- Outsourced Bookkeeping: hiring an outsourced bookkeeper enables businesses to delegate tasks such as reconciling bank accounts, sending invoices, and more.
- Outsourced Accounting or Controller Services: an outsourced accountant, sometimes known as an outsourced controller, works on tasks including monitoring budgets, running payroll, and producing financial reports.
- Outsourced CFO Services: these engagements focus primarily on major strategic issues such as raising investment and advising on M&A transactions.
No two outsourced accounting engagements are the same. Every relationship between an outsourced accounting firm and a business should be different since every business has a unique set of financial needs. Focus on finding a local partner that takes the time to understand your business and help build a winning plan for the future.
Three Reasons to Work with an Outsourced Accounting Firm in Indiana
There are outsourced accounting firms all over the county, but if your business is based in Indiana or close by, you would be well-served to consider finding a local partner that’s equipped to handle the full spectrum of your accounting needs.
Here are a few reasons why business owners should look to strike a partnership with a local outsourced accounting firm:
- Understanding of Local Tax Regulations: a firm with a large client base in Indiana is much more likely to understand the intricacies of Indiana state tax regulations than a national outsourced accounting firm based on the other side of the country. This not only ensures compliance but also saves your business money by ensuring that you take advantage of all available tax opportunities.
- Local Business Connections: business is a team sport. Success is driven in part by the strength of your network. An outsourced accounting firm with local roots will be able to introduce you to a variety of local professionals who can help you grow your business, including lawyers, bankers, and more.
- Ability to Partner More Closely: while technology has made virtual collaboration easier than ever before, sometimes it’s better to be able to meet face to face. And when you outsource your accounting needs to a firm based near Indiana, you’ll be able to do exactly that. At LBMC, we regularly welcome clients into our Louisville office.
It’s important to remember that all these benefits come in addition to the wide range of benefits that businesses can realize by outsourcing their accounting firm in the first place. Those include factors such as cost savings, efficiency improvements, access to best-in-class accounting technology, and more.
Meet LBMC: An Outsourced Accounting Firm for Indiana Businesses
Hiring an outsourced accounting firm can unlock major benefits for your business’s finances, but hiring a firm located close to you can be even more powerful. Working with a local outsourced accounting firm allows you to build a closer relationship, access new networks, and better navigate state tax laws.
If you’re interested in working with an outsourced accounting firm with expertise in Indiana, the team at LBMC is here to help. With a convenient location right across the state border in Louisville, KY, we’re proud to serve dozens of businesses located all across the great state of Indiana.
To learn more, contact an advisor today.