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Outsourcing the nonessential essential

April 24, 2018

Bookkeeping and accounting functions are essential for any business or not-for-profit organization. However, they are never essential to the organization’s purpose. Yet, many owners and managers spend inordinate time and concern on the bookkeeping. There is a practical solution that is a growing part of many accounting firms including mine.

A couple of weeks ago I heard one of my partner’s voice the following radio commercial:

“I’m Tom Angell practice leader of Withum’s private equity services group. Private equity emerging managers face the challenges of setting up and running a business when their main focus is fund raising and deal flow. You will need to setup your back office which will include your finance, compliance and investors’ relations departments. You will have to setup health insurance, payroll, retirement benefits and D&O insurance or you can hire a PEO to handle most of these functions. Documentation of HR evaluation and compliance policies are also important. At Withum we work with emerging managers providing the guidance and resources they need in order to get their organization successfully running.”

This got me thinking about why every business doesn’t outsource these functions. Bookkeeping is an involved process that includes billing customers and collecting the payments, payments to vendors and ascertaining receipt of merchandise or services and accuracy of the billing, payroll calculation and payment, benefit administration and payroll tax payments and filings, bank statement reconciliation, obtaining and reviewing insurance policies, setting up payment schedules, maintaining accounting records, back up and files and preparing timely financial statements for management and others that are required to receive reports. Further many smaller businesses do not have sufficient personnel to handle the full range of bookkeeping and in house accounting services that most companies and not-for-profit organizations usually or occasionally require. And bookkeeping employees sometimes get sick, or have personal emergences that keep them away from the office and these usually occur at the worse time [that’s the way it seems to always be].

One of our newer partners, Nina Chmura, has organized a new department that is dedicated to handling these services for clients. Already we have it fully staffed. Nina, Tom and I will be pleased to meet with anyone that believes this service could benefit them and we welcome a call to set up a no obligation meeting. I can be reached at 732.964.9329 or emendlowitz@withum.com

If you want to see a more inclusive explanation of these services, click here for a descriptive brochure:  https://partnersnetwork.files.wordpress.com/2018/04/withumworkflow-brochure-002.pdf

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