BUSINESS ARTICLES
Benefits of Outsourced Accounting for Manufacturing
In a highly competitive and complex market, outsourced accounting for manufacturing companies is a way to simplify operations, increase profitability, navigate change, and build a more resilient business.
In other words, it gives you the upgrade you need to survive and thrive in today’s climate.
What is outsourced accounting?
While some manufacturers continue to use an in-house accounting team, many now partner with an outside accounting firm to perform some or all of their accounting and financial management services.
This is what we call “Outsourced Accounting.” It can constitute anything from basic bookkeeping services to more sophisticated solutions like cashflow projections, financial strategy, outsourced controller, or outsourced Chief Financial Officer.
A company may outsource their entire accounting department, or they may have their in-house team partner with an outsourced firm to expand their capabilities.
6 key benefits of outsourcing
Outsourced accounting offers business owners a flexible, low-cost solution that grants them access to a broad range of financial services and expertise. With an outsourced team on-hand, manufacturers have the tools to navigate a complicated financial landscape and gain an edge over their competition.
Some of the key benefits of outsourcing include:
1: You no longer have to recruit, hire, train and manage an accounting team.
Building and managing an in-house accounting team is a time-consuming, resource-intensive process. Simply finding good financial professionals can be difficult, and if accounting isn’t your area of expertise, it can be hard to know if you’ve found the right person for the job. By outsourcing your accounting services, you can refocus the time, energy and resources you would otherwise spend on an in-house team and use it to grow your business.
2: You don’t have to cover the salaries and benefits of full-time, in-house employees.
Quality financial professionals expect high salaries and excellent benefits, which can quickly drain the resources of a mid-sized manufacturing business.
By outsourcing your accounting work to a firm, you no longer have to cover the high costs of in-house employees. Instead, you pay for the time and expertise of an off-site team in the form of a flat fee, one that is often significantly lower than the total cost of an in-house team.
3: You are not dependent on a single professional.
With an in-house team, there is always a risk that your business may become too dependent on a single person, the one employee your organization just can’t run without. What if your trusted professional suddenly leaves your business? How will you find the time to recruit, hire and train someone to take their place? What will you do in the meantime?
With outsourced accounting, you have far greater stability. While you may have a single individual as your primary point of contact, they will be backed by an entire firm. Even if they leave the firm, another professional who understands your business will immediately take their place, with no interruption to your services.
4: You can quickly and easily adjust your scope of services.
Let’s say, when your business first started, you just needed some basic bookkeeping services. Now, as your business grows, you’re looking for a more advanced, CFO- or controller-level solution.
If you choose to grow your in-house team, you will have to recruit, hire and train an expensive new employee. If, however, you choose to outsource some or all of your accounting needs, then you can simply upgrade your service package and immediately receive the services you need. Expanding your outsourced services is quicker, easier, and far less expensive than expanding your in-house team.
5: You have access to an entire firm with diverse knowledge, expertise and skillsets.
The proper management of a manufacturer’s finances calls for a wide array of skills and knowledge, from understanding the tax code and the laws of interstate commerce to knowing how to most effectively finance new equipment.
Most in-house teams do not have all the necessary capabilities. However, when you outsource your services to the right accounting firm, they will have the full range of skills and expertise to help you navigate any challenge that comes your way.
6: You can feel confident knowing your sensitive financial data is secure.
Rather than storing your data on a server or hard-drive, where it’s vulnerable to theft or damage, outsourced accounting firms like Dugan + Lopatka use cloud-based software. These programs allow us to manage your finances remotely, using secure cloud servers. Meanwhile, they allow you to access your company’s most up-to-date financial information anytime, anywhere.
Another related advantage of outsourcing is that firms like Dugan + Lopatka use only the latest and best accounting software and systems. You never have to worry about using out-of-date tech.
Outsourced accounting services made for Chicago-area manufacturers
For nearly 50 years, Dugan + Lopatka has provided financial management, accounting and bookkeeping services to mid-sized, Chicagoland-area manufacturers. Manufacturing is our specialty, and we have a team of experts who understand the many nuances of the industry, from the challenges of investing in new equipment to the intricacies of compliance laws.
Today, we are offering our full range of services as a flexible, cost-saving outsourced solution. Our solutions are tailored to your needs, covered by a flat monthly fee, and highly flexible—you can adjust your service package at any time.
Some of our outsourced services for manufacturing companies include:
- Inventory management & controls
- Cashflow forecasts & projections
- Capital budgeting & analysis
- Outsourced bookkeeping for Chicago, IL businesses
- Cost segregation studies
- R&D tax credit studies
- Auditing and managing internal controls
- Inventory capitalization rules
- Income tax depreciation
- Tax credits & job incentive initiatives
- Tax planning
- Cost accounting
- CRM, ERP & accounting software
- Outsourced controller services
- Outsourced CFO services and fractional CFO
To learn more about Dugan + Lopatka’s outsourced accounting for Chicago-area businesses, start here.