Could A Reliance on Internal Accounting Put Your Business at Risk?

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Could A Reliance on Internal Accounting Put Your
Business at Risk?
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• Whatever the size of your business, theres no
  doubt that as a business owner, you would benefit
  from any number of outsourced services, with
  accounting being one of the most beneficial.
• Helping you to reduce the cost of your overheads,
  reduce risk and enhance reliability, having the
  expertise of an entire team of tax and accounting
  professionals, can be hugely beneficial, and a
  lot more cost effective than setting up an in
  house accounting department. There is also a
  great deal of risk involved with a reliance on
  internal accounting, some of which are listed
  below

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• Internal fraud
• Relying on one or two individuals to manage the
  entire finances of your business, raises the risk
  of internal fraud significantly when compared to
  using the services of an outsourced provider.
• Not understanding costs in enough detail
• Without an accurate understanding of your
  companys costs, both indirect and direct,
  theres little chance of you ever having long
  term success, and with an internal accounting
  department, theres a strong possibility that you
  will never get a full and clear picture of actual
  costs.

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• When you outsource your accounting needs,
  however, youll find that theyve got all the
  technology and techniques at their fingertips to
  make it easier to develop a comprehensive
  understanding of costs. Armed with accurate
  costing information, you can go on to decrease
  expenses and regularly adjust prices to levels
  that will lead to profitability.

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• Employee errors
• Its a simple fact that in-house bookkeepers and
  accountants are far more likely to make errors
  and overlook them, due to the small size of the
  team when compared to the array of professionals
  typically working for outsourced companies.
  Identifying and correcting accounting errors is
  so much easier for a large team, working
  together, and at the end of the day, this gives
  you enhanced accuracy of your books and financial
  statements, and provides you with a clear view of
  your companys finances.

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• Non-compliance repercussions
• Staying abreast of all changes to tax laws is
  part and parcel of the role of an outsourced
  accounting and tax prep team, and they will have
  a clear and up-to-date understanding of the tax
  code and all tax regulations. Many non-compliance
  issues can have devastating consequences for
  businesses, including ruining their reputation,
  and putting your license and insurance at risk.

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• Cash flow problems
• As mentioned previously, not having an accurate
  picture of your businesses finances will likely
  see you suffer a variety of cash flow challenges.
  While every company will experience a fluctuation
  in cash flow throughout its lifespan, for those
  that rely entirely on in-house accounting,
  theyre much more likely to have frequent issues
  as its much harder for them to actively and
  accurately forecast cashflow.
• A reliance on internal accounting could be
  putting your company at unnecessary risk, and
  with outsourcing being such a cost-effective and
  convenient solution these days, maybe its time
  to try it out and give your business the
  financial security it deserves?

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• At Heyer Associates, we proactively assist our
  individual and small business clients in meeting
  their goals. Our key area of focus is ensuring
  that our clients remain compliant with federal
  and state tax laws by providing them with high
  quality accounting and tax services in Fort
  Lauderdale. If you are looking for individual
  accountant in Fort Lauderdale, Heyer Associates
  would be a right option.