6 Reasons Why Your Marketing Agency Should Outsource its Accounting Needs
Your company will unavoidably confront a variety of monetary and possibly even legal issues over the course of its lifetime if you do not have a trustworthy accounting partner by your side. You will be relieved to learn that it is not as difficult as you might assume to identify the most qualified accounting outsourcing firms. In this post, we will talk about six of the most essential reasons why marketing companies all over the world opt to outsource their accounting duties.
The number of persons employed by marketing firms in the United States is approximately 189,000, according to estimates from 2018. It should come as no surprise that a large number of new marketing firms choose to launch their operations each year given that marketing is one of the most essential aspects of operating a successful company.
Even if the goal of marketing may be clear to many business owners, operating a marketing firm may still be somewhat challenging due to the complexities involved. Not only will your agency have to compete with what seems like an infinite number of other firms (including dozens in your own area), but the firm will also have to maintain other aspects of the business with which you may not be familiar.
The outsourcing of accounting is one of the most popular and widespread corporate operations, and marketing firms of all sizes opt to do it. A relatively small percentage of marketers understand the fundamentals of marketing, and an even lower percentage of marketers have had any kind of formal education.
1) Digital Focus
In this day and age, a growing number of marketing companies are providing clients with distinctively digital concentrations of their services. These companies are in charge of a wide variety of duties, some of which include the production of digital content, the management of social media accounts, and the administration of eCommerce platforms. It should come as no surprise that collaborations between digital marketers and digital accounting businesses are not at all unusual.
Both partners will be able to streamline their operations and cut their overall operating costs if they place an emphasis on digitalization. In addition, because your company is functioning in the digital arena, it will be much simpler for it to collect data that can be put to use and to make decisions that are supported by data. Your company will benefit from the ability of its accountant to present, evaluate, and take action based on this information in the most effective way possible. They will also be able to manage challenges that are specific to the field of marketing, such as valuing intangible assets, avoiding double taxation for interstate transactions, and managing payrolls for personnel who are self-employed or work on a freelance basis.
2) Better Tax Practices
A survey that was carried out throughout the entire industry by Deloitte found that 53% of companies opt to outsource their requirements for tax preparation. This is an increase of 17% from the previous year (when compared to past surveys). Certified Public Accountants (CPAs), who must pass a series of examinations in order to be considered legal bookkeepers, will be familiar with the tax laws and tax deductions that can assist your company in improving its bottom line. CPAs must complete a series of examinations in order to become legal bookkeepers.
Unless you have an in-depth knowledge of the Internal Revenue Code of the United States, it is possible that your company is missing out on a significant number of tax deductions. These tax write-offs can include items like some marketing expenses, employee benefits, and even the cost of your home Wi-Fi network. If you hire an experienced accounting firm, they may be able to help reduce the proportion of your revenue that is being directly taxed, even if the applicable deductions that are available will vary depending on the type of business you run.
There is a general tendency for firms to become more specialised over time in an economy that is diversified, such as the digital economy of our contemporary world. Instead of supposing they are capable of doing everything on their own, many organisations realise what it is that they are good at doing and then outsource all of the other jobs to a variety of specialists.
Your digital marketing company will be in a better position to concentrate on the aspects of the business that actually result in profitable sales if it uses an outsourced accountant rather than handling its financial matters on its own. This can include acquiring new customers, providing support for existing customers, developing new marketing campaigns, and a wide range of other activities.
The truth is that the reason many marketing companies want to work with a digital accountant is because these companies are able to assist the marketing companies in improving their bottom line. Accounting, accounting, and the preparation of tax returns are all tasks that will invariably need to be performed by a company, irrespective of its size, sector, or degree of structural complexity. As a result of this, the question that needs to be asked is not whether someone will manage your accounting tasks; rather, the one that needs to be asked is who should be in charge of accomplishing these things.
The cost of employing a full-time accountant can range from $100,000 to even more than that for a single year, depending on the employee’s benefits package and level of experience. Instead of hiring a full-time chief financial officer, many new and expanding marketing organisations may look for fractional CFO choices because they simply do not have the resources necessary to do so. According to another recent report that was published by Market Watch, eighty percent of businesses that employed an outside accounting firm would refer their partner to another company if given the opportunity.
5) Financial Decision Making
Your accountant is more than simply someone who records what has previously happened; your accountant is also someone who may assist you in making plans for the future. Your company will be able to detect chances for profitable growth and make decisions that are in the best interest of your company when the appropriate accounting framework is in place.
Imagine that a prospective new customer is willing to pay your company $10,000 every single month in exchange for a particular (preplanned) marketing campaign. Should you move through with this new initiative for your company? The response will, of course, be contingent on a wide range of circumstances, including opportunity costs, the requirement for supplies, expenditures for your business, and a variety of other considerations. Work with an accountant who can assist you in determining whether or not the undertaking will have a favourable or unfavourable effect on your bottom line so that you don’t have to make this choice based on pure speculation.
6) Emergency Resources
In a perfect world, there would never be a need for emergency accounting services. However, in the actual world, situations requiring immediate action occur rather frequently. Emergencies in accounting can take many forms and include things like incorrectly filed taxes, the publishing of faulty financial statements, problems with liquidity, and many other things. The effects of poor accounting processes will often accumulate over time if nothing is done to rectify the situation.
The most qualified outsourced accounting firms will be able to provide you with assistance in weathering these storms as soon as they make their appearance. Some companies even provide support around the clock, which makes it far simpler to put an end to these issues before they spiral out of control. Although you might not be required to use these services very frequently (or maybe even at all), it is unquestionably beneficial to have access to them if you require them.
To Conclude, Here Are Some Good Reasons Why Your Marketing Firm Should Outsource Accounting
You would not be the only one if you were thinking about hiring a professional to handle the accounting responsibilities for your marketing company. The choice to engage in outsourcing can result in the accumulation of a wide variety of positive outcomes for the business. You will be able to evaluate whether or not this course of action is beneficial for your company if you first learn the reasons why so many other businesses make the same choice every year.