While a tongue-in-cheek definition of an accountant is “a professional who solves a problem you didn't know you had and solves it in a way you can’t possibly understand” may sound amusing there is more than a grain of truth to it.
As an entrepreneur and business owner there comes a point when you become acutely aware of the time involved in handling the day to day financial necessities. That’s time you can’t afford to spend dealing with ledgers - albeit in a QuickBooks format. The realization that you need to improve internal analysis and reporting methods to strengthen your company’s financial functions in order to position it for growth has hit you between the eyes.
Historically a business owner had two choices: hire an outside firm or incur the expenses associated with employing an on-staff accountant. If hiring an outside firm, the business owner was then faced with the dilemma of selecting the optimum sized firm for company needs and the realization that many clients demanded that firm’s time. And the worst part was – the entrepreneur/business owner still needed to have a bookkeeper on staff perform the daily required tasks.
Enter the ‘Hybrid’ Accounting Firm. These are relatively small firms that serve as “in-house” accounting and bookkeeping firms for their clients but are neither on the payroll nor on the premises. Depending on your needs, these firms can handle full bookkeeping functions on a daily, weekly or monthly basis. Services range from general ledger maintenance to on-going account maintenance; invoicing, billing and payables. The ‘Hybrid’ Accounting Firm assumes full responsibility for all daily financial transactions.
The ‘Hybrid’ Accounting Firm can, and most often does, assume full responsibility for the purely accounting aspects as well. Included within the accounting area are the analysis for and preparation of financial statements; cost accounting and variance analysis, treasury and cash management including bank reconciliations, fixed asset accounting and payroll.
The most capable of the ‘Hybrid’ Accounting Firms work closely with your CPA when it comes to taxes. Because all company records and financial statements are completely accurate and fully current, your CPA saves incalculable time. This, in term, saves you considerable money because your CPA does not spend time tracking down and double checking facts, figures and dollars.
Is a ‘Hybrid’ Accounting Firm a cost effective proposition for your business? Almost always! Many of the ‘Hybrid’ Accounting Firms have fixed rates that are determined by your exact needs. These costs are disclosed and agreed to in advance. There is no need to add staff; you are not paying amortized costs to support multiple offices and employees, you save on your annual CPA expenditures.