This can be considered a debatable topic, but it is hands down the most repeated question I hear – from other professionals, from friends, potential clients- you name it. “Why are you different?” Here are four very important reasons why:
1. Continuous Accounting
General accounting is transaction driven. The outsourced model is continually recording those transactions using technology and automation so that you and your team have access to real-time information such as bank balances, balances due vendors, amounts owed on customer accounts, and even net income daily. The traditional bookkeeper model is not continuous. These are often on-site visits to record checks written and revenues received at the end of each month or on some other pre-determined basis. This is historical transaction recording, so you are not ever receiving up to date information. Once the month has been recorded, you are likely well into another, or even second month past when the transactions occurred.
2. Skill Level
Your accounting data is only as good as the people touching it. The outsourced model consists of a team of providers with deep accounting and industry experience, technical proficiency, and the requirement to continually maintain those skills through training. The outsourced model typically has a transaction specialist with experience similar to a bookkeeper. However, the team members also encompass accounting managers, controllers, and CFO’s, which provide a much different result than simply a transaction specialty. Many bookkeepers are “software” specialists (QuickBooks, Peachtree) and their expertise lies largely the transactional piece, and providing the standard reports from the system. In comparison, the outsourced team provides a full range of services, from transactional to acting as your internal controller, and even provide the ability perform CFO functions such as board presentations, budgeting, forecasting, and detailed analysis.
3. Procedures and Internal Controls
Part of the onboard process with an outsourced accounting team is to walk through your processes and document them and work to make them more efficient. As those changes occur, they are also documented. If turnover occurs, someone new on the team is easily able to pick up and continue the record keeping. The spread of tasks among a team and technology ensures that the duties to separate tasks for compliance with internal control best practices is met automatically. With a traditional bookkeeper, the responsibility typically lies with one individual, which is often worse than having the accounting done in-house. A significant amount of reliance is put on that person, and generally the only information received back to management is a profit and loss statement and balance sheet.
4. Scalability and Impact
Because we use automation, best in class software, and a team of professionals, we are poised to grow with you, wherever your business plan takes you. The transactional piece is a given, but the insight, technology capabilities, and data that we provide can take you from a $1 million to $50 million-dollar company seamlessly. The traditional bookkeeper is limited to technology (again, typically using QuickBooks or Peachtree), the time constraints of daily tasks, expertise and even checks and balances as described previously. At the end of the day, running a successful business requires information to make decisions. A bookkeeper tries to cram several weeks of activity into a few days, and typically manually enters that data into a software package that is not capable of analysis, and even if it was, the bookkeeper does not have the time or the knowledge to dive into that piece because they are so frenzied trying to get the period end closed in just a few days.
Where advanced technology and client service converge is where you will discover the accounting solutions provided by RubixCloud. We would love to have a conversation with you to better understand your current situation and determine how we might be able to help.