Childcare Business Financial Strategy: Benefits of Outsourcing Your Accountant

You already know how important it is to get the financial side of your childcare business in order. Maybe you’ve considered adding a full-time accountant or bookkeeper to your team. However, you have another option: hiring an outsourced accountant for childcare business support. In this guide, we’ll review what an accountant does for a childcare company and walk through the biggest benefits of outsourcing the role. Read on to find out more.

The Role of an Accountant or Bookkeeper

The financial health of your childcare business is critical to its success. As a result, the right accountant or bookkeeper can take a lot off your plate. According to the U.S. Bureau of Labor Statistics, accountants handle far more than tax season — they touch nearly every part of a small business’s finances.

For example, a professional accountant or bookkeeper can perform many key functions for your childcare company:

• Payroll processing – Your accountant manages every step of paying employees. That includes calculating earnings, withholding deductions, filing payroll taxes, and ensuring on-time payment. In addition, they keep you compliant as rules shift.
• Tax preparation and compliance – Today’s tax laws are complex. A professional helps you file correctly, maximize deductions and credits, and avoid penalties. The IRS Small Business and Self-Employed Tax Center is a strong free starting point, but a pro will tailor strategy to your business.
• Monthly reporting – Clean, accurate monthly reports let you check the health of your business and make smart calls. An accountant cleans up your books and builds reports you can actually use.
• Invoicing and receivables – Healthy cash flow depends on getting paid quickly. Your accountant uses modern tools to streamline invoicing — saving time, cutting errors, and protecting profitability.
• Quarterly and annual forecasting – A good accountant helps you look ahead. As a result, you’ll feel in control of next quarter and next year.
• Profitability coaching – An accounting pro helps you tighten the budget, boost cash flow, and invest wisely so you can grow.

Do You Need an Accountant Right Now?

Wondering whether it’s time to bring on an accountant or bookkeeper? Ask yourself the following:

• Is the financial side of your business pulling you away from what you love most about it? In other words, are you stuck in payroll, budgeting, and tax work when you should be running the company, leading staff, and serving families?
• Can you afford the mistakes a pro would catch? Financial errors are expensive. If you’re not fully confident in your numbers, you may be holding the business back — or putting it at real risk.
• Can you grow the company by yourself? Managing day-to-day operations and driving growth is a lot. It may be time to hand part of that load to a specialist.

Whether you’re just starting out or have been at this for years, now may be the right time to bring in an accounting pro. However, what if you can’t justify a full-time, in-house hire? That’s where outsourcing comes in.

Why Hire an Outsourced Accountant for Childcare Business Owners?

Outsourcing your accounting can give your childcare business a real edge. The AICPA regularly highlights outsourced finance as one of the fastest-growing service models for small businesses. Here’s why it works so well for childcare owners.

1. Outsourcing saves time and money

Hiring a full-time accountant or bookkeeper can be impractical — or impossible. First, recruiting, hiring, and training take real effort. Next, you add the cost of benefits. As a result, an in-house hire often doesn’t pencil out.

An outsourced accountant skips that whole cycle. You only pay for the services you need.

2. Outsourcing flexes to fit your business

A professional accounting service offers a menu of functions you can mix and match. For example, do you already have a bookkeeper handling payroll and the monthly budget? An outsourced accountant can layer in higher-level oversight without replacing your existing team.

In other words, you can outsource everything — or just a few specific roles. To compare with the executive tier, read our piece on the benefits of outsourcing your CFO.

3. Outsourcing reduces risk and improves accuracy

Companies that handle every financial task in-house face higher risk of both fraud and simple human error. Meanwhile, an outside accountant brings unbiased, objective expertise. They aren’t personally tied to your numbers. As a result, they can give you a clear picture of where things stand — and a plan to move forward.

4. Outsourcing gives you access to top-tier expertise

When you outsource, you’re hiring people who live and breathe accounting — payroll, tax compliance, risk management, forecasting, and beyond. According to Investopedia, that depth of bench is something most small businesses can’t replicate in a single in-house hire.

For example, your outsourced team can help you build out a financial dashboard, lock in the right KPIs, and make sure you’re set up to pay yourself the right way.

5. Outsourcing increases efficiency and growth

Finally, professional accountants assess your processes and tighten them with modern tools. As a bonus, you get on-demand reports and a clear view of where you stand. As a result, you can make confident decisions and grow faster.

Take the Next Step

Now that you know the benefits of outsourcing accounting for your childcare business, the next step is easy. Schedule a discovery call with our team. The experts at Honest Buck Accounting will help you optimize your finances and free you up to get back to what you love most about your childcare business.