Refraining From Outsourcing Accounting Solutions Can Cost You

In-House Accountants Aren’t Cheap

Now your business is going to expand—that should be the goal, right? This means it doesn’t matter how good your accountants are, that department is always going to require some growth. There will be internal infrastructural pressures, equipment costs, space costs, taxes, benefits, and all the other accoutrements which surround internally-sourced departments.

But technology allows you to offset many of these costs simply and directly. Nimble.com lists eleven ways technology can help you save money at your business, and one of the most important items on that list is titled “crunch the numbers”.

To that end, consider some of the numbers which surround the regular employment of an in-house accountant, or the facilitation of even a small accounting department. On Quora.com, a business making $12 to $15 million in revenue annually is going to have between two and four individuals in the accounting department, minimum.

Estimates vary on an accountant’s yearly wages, but generally you can expect a spread between $30k and $100k. That means at best you’re out $120k/year for such a department. At worst, $400k or more. And to compound matters, as mentioned earlier, that cost is just going to keep getting bigger; especially if your enterprises have some measure of success.

You need to consolidate where it’s possible, and today there are online options which can entirely replace an internal accounting department every bit as effectively, but while curtailing literally thousands in costs. Generally you won’t need an accountant until you really need an accountant—but you can’t call an employee out of bed at two in the morning. The internet has no such hang-ups.

Exterior Accounting Solutions

According to Basis365.com, outsourcing your accounting services to an exterior agency can yield exceptional convenience and savings, as well as continuous access to information; like the site points out, their “…software, ecommerce, and service-based customers love how easy [the] process is. Everything is online – all the time.”

If you discover an error on the books over the weekend, you may be able to resolve it immediately wherever you happen to have access to the internet. It’s conceivable that you could clear up a difficulty on the beach with your smartphone, if the data were available to you. This can save days—or weeks—of work. With the swipe of a finger, you conserve thousands.

Even the best accountants are going to make costly mistakes. Should you pay them the highest wages, they will still drop a decimal here or fail to take something into account there. You can’t really penalize them, either. Well, you can; but if they know your books and don’t have requisite moral scruples, you’re leaving yourself wide open for an unexpected attack.

Online, you’re dealing with machines that have complete neutrality. Sure, you might make mistakes running the software; but none of those are going to hold a grudge and decide to take out your business from the inside. You’re a lot less likely to accrue an unexpected audit through use of online software than you are through a disgruntled former employee.

Adaptation

Now the transition can take a little time, but generally isn’t too complicated. Also, when you critically examine it, though an in-house accountant can substantially save your organization, their services tend to be required on a basis that is almost seasonal. Yet retaining them as a dedicated service provider requires year-round employment.

For those businesses who have yet to explore online accounting options, there are a great deal of ways in which this innovation stands to benefit you. Run the numbers and see if you can afford to save a few thousand.

3 Mistakes That Will Destroy A Small Business

Even if you’ve got a lot of experience in your industry, running a small business successfully will require a little experimentation, trial and error. You may have developed an airtight business plan, learned from a great mentor and secured an excellent product or service, but there’s still room for various problems to spring up. To ensure you have the smoothest start to your business, here are some of the biggest mistakes small business owners tend to make.

Hiring the Wrong Staff

Perhaps you’re reading this because you’ve managed to get by as a solo entrepreneur for some time, and finally feel ready to expand your operation. If you’ve had no prior experience with managing a recruitment drive, then you’re already at risk of making a major small business mistake. Hiring the wrong people to your business can quickly bring your great idea to ruin, so make sure you’re not settling, or trying to rush through this process. Make sure everyone you take on board has the right skills and experience, and a personality that will mesh neatly with your brand identity and values. The one thing you don’t want to do is hire friends or family. This can lead to objectively bad hires, and strain close relationships.

Neglecting Health and Safety

This is another big mistake commonly made by entrepreneurs who aren’t used to having staff to take care of. Aside from giving them fair compensation, and enough guidance and feedback to reach their goals, you also need to make sure you’re giving your employees a safe and healthy work environment to come to every morning. I know, getting this out of the way can be a long and tedious hassle. However, just one disgruntled employee with work injury representation from an attorney can mount a seriously damaging case against you, and rightly so! Start off by identifying risk factors that your staff are exposed to, and making sure these are covered with a set health and safety policy. Read up on what the law requires from you as an employer, and make sure you’re playing ball with all the relevant regulations. Follow this up by appointing someone competent enough to enforce and monitor health and safety at your organization.

Misjudging the Market

Thorough market research is one of the many essential cornerstones of starting and maintaining a profitable business. Obviously, you’re raring to go ahead and turn your ideas into a reality. However, charging headlong into a market that you don’t have a decent understanding of will cripple your business faster than you’d believe! Remember that the success of your business isn’t about how great it seems to you or your upper management, it’s about how much money it can realistically make. How much experience do you have in the industry? How strong of a hold do your competitors have on it? What can you do to undermine them? Even if your product or service is incredible, you need to make sure your business plan has a chance of surviving in competitive, buoyant markets.

The New Ways of Living Today

Everybody needs home-buying advice at some point in their life, and it’s important that when the time next comes for you to make a move, especially if it’s your first move, that you know everything there is to know about the new ways in which people are generally living today. Some of these ways of living aren’t necessarily going to be discussed with you by estate agents which is why it is important that you do all the research you can yourself beforehand. Luckily, the Internet and all the online resources it has produced mean that advice on any kind of living, old or new, can be found with just a click of a few buttons. Below, you can find some of the new ways in which people are living in this day and age in developed countries.

Sharing a home with others but without family or romantic attachments

The popularity of young adults taking to living in communal homes with people that they aren’t related to or romantically attached to is on its biggest rise in the history of home owning. And this doesn’t just refer to university students house-sharing in an attempt to make the most out of the little funds that they; this refers even to people in their late 20s to mid-30s who are just interested in doing so for the camaraderie, the good times and the memories that are made. The fact that this type of communal arrangement is increasingly becoming one that is not just temporary and is a long-term life plan shows the significance that young people are putting on remaining in touch with their friends in the 21st century.

Also, there is in an increasing trend in the rise of people living together to raise a child, without committing to each other romantically. This trend has increased two-fold, evidenced by the online registry Family by Design that allows for two like-minded adults, who want nothing more than to raise a baby, to find each other, move in with each other, and raise the child. This kind of relationship completely goes against all the virtues that we have come to know as the ‘right’ way to do things, but is this a good thing? This kind of living and family arrangement, if stuck to, is going to mean that the lack of romantic attachment is not going to lead a break up of the couple down the line, ultimately meaning that the child is not going to have to suffer seeing their parents split up.

A group of friends living together

Not moving out from the family home at all and inviting all the generations of it to live there too

There has long been a stereotypical depiction of people that don’t move from the family home.

‘They can’t cut the apron strings.’

‘They can’t fend for themselves.’

‘They probably can’t even wash their own clothes.’

However, it seems that these ideas are changing in the brave new world of home and family dynamics. The multigenerational style of living, where different generations of a family all live together under one roof in ways that benefit them all. The younger generation, generally those that are 20 years of age and onwards, stay in the home to be able to contribute to the household bills through the amount of hours of work that they are able to do — the middle-aged generation, typically their parents, aunties or uncles, share their time between working and looking after the next generation in the household — and the older generation, the aforementioned ‘next’ ones in the list, are the grandparents of the young, and parents of the middle-aged, and spend their time enjoying their retirement and also helping out where they can, both financially and in terms of any new arrivals that may be on the way in the form of a new, fourth generation. Having all these generations under one roof offers up the family an opportunity to combine all of their financial income and spend it towards the bettering of their family stature, i.e. by making an expansion to the home, moving to a bigger one or by sending the younger generation off to college to get a good education in the healthcare or law sectors.

If you are a young adult, especially in the times of financial uncertainty we are in the midst of today, then staying at home doesn’t mean that you are a part of the ‘Go Nowhere Generation’, it simply means you are prudent enough to see the best deal when you see it. Besides, generally, parents and their grown-up children are seemingly closer than they ever have been, which is another contributing factor as to why this style of living is gaining increasing precedence.

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A multigenerational family

Living in a Cohousing community, planned community or Ecovillage

Tight-knit and relatively small communities are probably the ‘it’ places to live right now. They are an inception and concept that grew in precedence and literally throughout the latter years of the 20th century, and are still being built to this day.

Cohousing communities are collaborative neighbourhoods where the sustainable living aspects found in a larger, small town areas are combined with a small and reclusive feel. Residents in the community work together to actively transform the area and share facilities, which induces a community feel, whilst still offering individual living areas. However, there are also community options where ‘community’ isn’t at the forefront, like it is with Cohousing options. Planned communities, for instance, are just neighbourhoods that were carefully planned from their inception in order to ensure that everybody who habitats within them has everything that they need; they aren’t necessarily places where communal living and neighbourly spirit is at the forefront. They are not ad hoc in their way of living — in English that simply means they aren’t designed for on particular purpose. There are a constructed in previously undeveloped areas, meaning that spaces on offer all over the world are being used and optimised to their full potential. There a number of homes for sale from the Phyllis Frankel Realty Group that are situated in planned communities, priced at an average of $498,000, which shows how much accommodation within them are sought after. A contributing factor in regards to this is simply because of the fact that everything about a planned community is meticulous: everything is, as the name suggests, planned. And in comparison to this, Ecovillages are places where all of those within them work together in unity to achieve a goal, rather than simply just to live: that goal being to be able to sustain a good standard of living whilst leaving no carbon footprint. They seek alternatives to substances that destroy the ecosystem, such as certain aspects of electricity, transport, waste-treatment and even water.

If living in an area where you can retain a whole host of relationships with a whole host of different people without having to go very far to do so, whilst still having your own space and own living environment, then community living may be for you. Like the stereotypical idea of retirement village, this option is one that brings together a whole community, along with everything they could possibly need, in a relatively small area.

Planned community

If the points in this article about the different ways in which humans are living in this day and age has interested you, then make sure to check out more about it in How We Live Now: Redefining Home and Family in the 21st Century. This book by Bella DePaulo highlights how the world of today is challenging concepts about living in the past. It is an examination into how people are finding a good standard of living in ways and even homes that wouldn’t have been considered an option 100 years ago as well as being an exploration into the experiments of living in the 21st century. And when it comes to your next big move, you have to think about what it is you really want. If you want to live with your friends and recreate those college days for years to come, who’s stopping you? If you want to raise a child, but don’t fancy a committed relationship, why not move in with someone else who wants this for this purpose and this purpose alone? If you want to stay in the family home and build a ‘multigenerational’ household, why let naysayers stop you? If you want to find yourself a ‘lifespace’ where you can live within a tight knit community, either with a neighbourly goal at the forefront, or not, then why not up sticks and find one? There are a whole host of options when it comes to living arrangements in the 21st century, and it’s your right as a person of this world to be able to choose which one is best for you. Always remember: every move that you make has to be carefully thought through beforehand so as to make sure that you’re not making a huge life mistake, so make sure that you always think it through!