Differences in Small and Big Business
Accounting and bookkeeping procedures differ depending on the size of your business. Small businesses looking to outsource, will typically do so by allowing the firm to take over all accounting and bookkeeping functions; where large corporations will typically outsource the “grunt work” processes like payroll services while employing people to handle basic internal processes. According to a survey published buy the Institute of Management Accounts (IMA), small and mid size companies tend to spend 51% more on finance and accounting services then large companies. They also have 79% more headcount than their larger counterparts.
In small businesses, usually it’s only necessary for one or two bookkeepers to manage the whole general ledger. They will work to record costs and credits, and produce financial reports for managers within your business. Outsourced bookkeeping services will handle this in addition to compiling receipt data, bank deposits and sending bank payments. Since, large companies likely have resources available for more positions; they are able to employ various specialized tasks. If you own a large company of more than $5 million in sales or 50 employees with already established positions in finance, the switch to outsourcing bookkeeping and accounting service may seem difficult. However, companies with already established internal finance staff can benefit the most. Internal resources can be refocused to key strategic business functions.
Recent advancements and trends to outsource accounting functions have made it a viable solution for small to mid size business. More companies offer full service solutions for small companies looking to alleviate the burdens of bookkeeping and accounting. You and your management team will have more internal focus and control over your vendor at an abbreviated cost. Ultimately it makes your business, small or large, compliant and prepped for growth.