Closely Held Business Advisor: Co-sourcing: Positioning You for Growth

No matter the size of your company, in some cases, getting help with your accounting and consulting needs may actually save your company money and stress. You can do this through co-sourcing.

Many companies, including start-ups, should consider co-sourced accounting services so they can focus on growing their company and meeting their goals. Co-sourcing creates a team that is at your fingertips to position you for growth and free you up to do the work you were trained to do. They can work side-by-side with you to meet your goals. Frequently, companies with limited resources are overwhelmed at the idea of maintaining their accounting records. The same may be true when it comes to the accounting records at a doctor’s office. A doctor should not need to be good at keeping his accounting records organized. We want him good at being a doctor. By co-sourcing your accounting, especially to the same firm as your tax advisor, you can better position yourself for tax planning purposes and have the support you need to meet long-term business goals.

Opportunities for co-sourcing include:

  • A team member needs to be on extended leave (Maternity leave, illness, etc.). Rather than spend the time and money to train 2-3 team members to split the load, you could co-source the work on an interim basis. Tasks may include sales tax returns, bank reconciliations, report preparation and analysis, etc.
  • A team member gives their notice. After evaluating their salary, benefits, overhead costs and duties, it may make more sense to co-source their role.
  • Special projects that would overburden your existing team or cause other work to be neglected when responding to those requests.
  • To support the accounting and finance team in a consulting role for audit purposes when the audit is performed by another firm and to assist with calculating year-end entries, proofreading financial statements, assisting with researching accounting topics.
  • Maybe you have the staff capacity, but the cost of maintaining accounting technology is not beneficial in light of overall costs, such as frequent software updates and add-ins.
  • Maybe you would like certain accounting or payroll information kept in a more confidential manner. Co-sourcing may allow you to have the sensitive data processed outside of the office.

As you are evaluating where your company is in relation to your goals, take a moment to evaluate your accounting needs. How could co-sourcing help you reach the next level? Is it time for you to let us assist with the accounting duties that are currently on your plate? Co-sourcing your accounting needs may be the push you need to get your business where you want it to be by the end of 2017. Contact your Elliott Davis Decosimo advisor today to help you meet your goals!