by Karen Stern
There are several reasons that outsourced accounting is a preferred solution for most small businesses. Outsourcing your accounting needs allows you and your staff to make better use of your time and resources, capitalize on business opportunities and focus on your business’s mission and bottom line. But do you know the right questions to ask if you’re considering outsourcing your accounting?
Below are a few questions to ask a firm if you have decided to outsource your back-office functions:
- Are the accounting duties properly segregated? Proper segregation of duties should ensure that different people are responsible for authorizing transactions, recording transactions, maintaining custody of related assets and reconciling account balances.
- Do you have internal controls in place? Outsourced accounting can help prevent fraud. When choosing a firm for outsourced accounting, it’s important to consider your own internal controls and the outsourced accountant, in addition to price.
- Where will the data be stored? Consider the security of information and whether data is stored on the client’s server, the firm’s server or QuickBooks Online.
- How do you restrict access to financial systems? Consider restricting who has access to software for your back-office operations. Most programs, like QuickBooks online, will allow you to control who accesses your account and financials.
- Will my work be completed on schedule if someone is on vacation or out of the office?
- Who is responsible for the accuracy of my information? What sort of oversight or review process is in place?
- How many members are on your team? Does one person perform all the accounting functions or are there specialists to handle sales tax, payroll, journal entries, etc.?
Karen Stern, CPA, (kstern@bswllc.com), partner in charge, Brown Smith Wallace Entrepreneurial Services Group, provides tax and accounting services for companies ranging from start-ups to $20 million in revenue.
Submitted 5 years 186 days ago