Top Five Reasons Agricultural Businesses Should Outsource Accounting Functions
Commerce in all sectors is being forced to reinvent processes and product offerings at an unanticipated pace. As businesses react to these new challenges in an unpredictable marketplace, the day-to-day operations of management also must evolve. Agricultural businesses such as family farms and ranches or entities that focus on chemicals, machinery, seed, crop production, or breeding have their own unique set of challenges with labor constraints, market volatility, and regulations. Through the combination of the right technologies serviced by a reliable accounting firm, outsourced accounting is a viable solution that can enhance financial operations. Let’s explore how.
1. Gain Financial & Operational Efficiencies
As an agricultural business, regardless of the environment you find yourself operating in, business processes must continue. Bills must be paid, taxes must be filed, and receivables must be billed and collected. Some agribusinesses find themselves with a “shoebox of receipts” or a “truck dashboard full of mail” at the end of this process that must be organized and interpreted. An outsourced accounting solution can handle the daily and monthly tasks while putting together the information in an easy-to-read package. Businesses that are equipped with an outsourced accounting solution are well positioned to keep financial operations running smoothly.
2. Improve Financial Data Quality & Reliability
Those in agribusiness tend to have a pulse on their operations and have cost, yield, and market prices stored in their minds. However, bringing in a trusted advisor to put together higher-quality reporting allows management to gain better insight on the performance of their operations and ultimately have access to more timely and accurate information for decision making and tax planning. Also, third parties such as bankers, USDA program managers, and crop consultants often rely on financial information to approve loans or grants, so by outsourcing accounting functions, you can have confidence in your financial information’s accuracy and availability. Simply put, not only do you gain insights critical to making business decisions, but you gain peace of mind in knowing that your numbers accurately reflect the state of your business.
3. Make Smarter Use of Limited Resources
Today’s farmers and ranchers find themselves wearing many hats. In fact, you might find yourself marketing your business, working on human resource functions, reporting on payroll, bookkeeping, and managing your operations on any given day on top of the usual tending to livestock, planting and harvesting, and trucking. This extra workload can create a great deal of paperwork, which takes valuable time away from other important tasks. For many owners and managers, paperwork and other related tasks are often a dreaded component of running an agricultural business. With limited hours in a day, there’s thankfully one area that can be easily outsourced: accounting. Why bother with the tax deposits, quarterly SUTA reporting, and annual 943, W-2, and 1099 reporting if you can outsource that function? Besides, freeing up your capacity enables you to concentrate on your core business.
4. Bring New, Proactive Ideas to the Table
When someone is heavily involved in the details, a fresh set of eyes can be a valuable benefit. A trusted advisor can review the financial information and ask the right, unbiased questions. Is there anything missing? Is there anything that should be handled in a different manner? Are there opportunities not being pursued? Businesses that have operated in a consistent manner for a long period of time can likely be unaware of new, effective, and efficient processes. These businesses can greatly benefit from a fresh perspective that brings innovative ideas to help ensure that your business continues to grow and adapt to a constantly changing business environment.
5. Tap into Critically Important Technical Expertise
One of the most critical considerations when choosing a respected outsourced accounting provider is the firm’s technical expertise. The advantages to this have rarely been more evident than in the current environment amid an abundance of new legislation and a lot of uncertainty (#thanksCOVID). Outsourced accounting professionals deal in the accounting world day in, day out. Those in agricultural businesses don’t need to become experts in this area. Rather, they should rely on their trusted advisors’ expertise now more than ever. At BKD, our clients have relied on us for relevant news, insights into changing guidelines, and detailed knowledge of new regulations. Don’t get bogged down by trying to become an expert in all of this yourself. Instead, outsource—you might be glad you did.
Ready to outsource your accounting functions? BKD has a team dedicated to helping clients with everyday accounting challenges that also have the industry-focused expertise you need. Contact us using the form below or visit our Outsourced Accounting Services page to learn more about our services.