Is There a Difference Between Outsourcing and Private Business Services?

May 23, 2019

apple podcasts.png  google play.png  spotify.png  iheart.png

In this episode of “The Bottom Line,” Lindsey Gross of EisnerAmper’s Outsourced Finance and Accounting Group joins Tim Schuster from Private Business Services to discuss the differences between these two areas, give us a couple of client case studies that demonstrate those differences, and which types of client could benefit from each.


Transcript

Dave Plaskow: Hello and welcome to “The Bottom Line.” This podcast examines the everyday business and finance issues faced by closely held and private businesses. We hope to provide you with news you can use in what we like to think of as a jargon-free zone. I'm your host, Dave Plaskow, and with me is Tim Schuster, a manager in EisnerAmper’s Private Business Services Group. Today we'll discuss with Tim and his special guest an interesting real-life outsourcing case study. Tim, hello.
Tim Schuster: Hey Dave. It's great to see you, bud.

DP: Tim, part of being a valued and trusted business advisor is connecting clients and potential clients with the right people. I understand you have an interesting story about that.
TS: I do. Absolutely. I actually received a call from someone starting a company that needed help with daily accounting activities. So I immediately involved Lindsey Gross from EisnerAmper’s Outsourced Finance and Accounting Group. She can tell you more about situations like these as they deal with circumstances like this on a daily basis.
DP: Well, Lindsey, welcome to the program.
LG: Great to be here, Dave.
DP: Lindsey, tell our listeners the difference between what you do and what Tim does.
LG:I believe outsourcing is the Jack-of-all-trades accountant. We're able to fill any gap for our client's accounting and finance departments, which allows our clients to focus on their core business.
DP:Okay. So give us a sense of the type of companies you work with, the industries and sectors.
LG:We do work for companies of all sizes, anywhere from startups all the way to subsidiaries of Fortune 100 companies and U.S. subsidiaries of foreign parent companies. Clients are in a variety of industries, including technology, life sciences, financial services and others.
DP:Lindsey, give us an example of an interesting engagement that your team worked on.
LG: One of my favorite examples is a client that I've been working on for the past few years. We were engaged originally to be the independent party to do the accounting for a joint venture. They hired us to maintain their books and records, and they also hired us to do the initial technical accounting for the formation of the entity. Since inception, we've provide them their monthly closes and we act as their CFO. Over the past three years, this company has relied on EisnerAmper because they've experienced significant growth for any transaction. They came to EisnerAmper to get our input as to what the implications will be for the company financially.
DP: You must have another example you could share with us.
LG:Yes. Another one of our clients is a U.S. subsidiary of an Italian pharmaceutical company. When they opened their US subsidiary a few years ago, they hired us to maintain their books and records as they didn't want to incur any overhead costs in the U.S. for this. On a monthly basis, we report to them and then they are ultimately consolidated into the parent company's financial statements. This company is currently listed on a smaller European exchange and it is looking to list on NASDAQ in the near future. As they go through this process, they're going to look to us to help them and guide them so that they are in compliance with any requirements for SEC reporting.
DP:Give us the bottom line on what differentiates outsourced finance and accounting from Private Business Services?
LG:Outsourcing is going to allow companies to control their overhead costs by engaging EisnerAmper to fill their gaps in their accounting team without taking on additional employees who may not be fully utilized during the year. We can work with management to support them with any type of operational needs on a continuous basis.
DP:Thanks Lindsey. That that gives us a good flavor for the Ying and Yang of Outsourced and Business Advisory Services.
LG:Okay. You bet Dave.
DP: Tim, anything to add?
TS: So my take-away is Private Business Service handles a wide array of client’s needs, whether it be through financial statement preparation, tax services, state IRS audit representations, pension audits, the Center for Family Business Excellence, which I have discussed in a prior podcast, and consulting with our fantastic Outsourcing and Finance Accounting Group. So there really isn't an area that the umbrella of PBS or Private Business Service does not cover.
DP:Okay. Sounds good. Well, we can't forget one of your New Jersey Historical Society Fun Facts.
TS: I'm looking forward to this one because this is a bit of an odd story. So near the end of the Civil War, Abraham Lincoln’s son, Todd Lincoln, was purchasing a train ticket in Jersey City when he accidentally was pushed off the railroad tracks when a train was arriving. Todd was saved by a good samaritan. That good samaritan was Edwin Booth, John Wilkes Booth’s brother, the man who ultimately assassinated Abraham Lincoln.
DP: Wow. That's mind blowing.
TS: Interesting dinner conversation, huh?
DP: Well thanks again to you both for this valuable information, and thank you for listening to “The Bottom Line” as part of the EisnerAmper podcast series. Visit eisneramper.com for more information on this and a host of other topics, and join us for our next EisnerAmper podcast when we get down to business.

About Tim Schuster

Mr. Schuster is a Senior Manager providing tax compliance services to individual filers, as well as assistance on tax returns for companies in the manufacturing and real estate industries.

About Lindsey Gross

Lindsey Gross is a Senior Manager in the Outsourced Finance and Accounting Group with expertise in both private and public companies. She serves a diverse client base, including technology and commercial clients.

Have Questions or Comments?

If you have any questions about this media item, we'd like to hear your opinion. Please share your thoughts with us.

* Required


More Podcasts in This Series

State Tax Incentives – Do I Qualify?
State Tax Incentives – Do I Qualify?

Tim Schuster and Steve Abbott, president of Abbott Consulting Group talk about certain ways your business can take advantage of state tax incentive programs, such as through relocation, investment and staff training.

You Mean Employers and Employees Are Not on the Same Page?
You Mean Employers and Employees Are Not on the Same Page?

Meredith Brown speaks with Tim Schuster about employee vs employer perspectives on the evolution of financial wellness, compensation, and employee incentives.

Employee Benefits That Are on the Fringe
Employee Benefits That Are on the Fringe

This episode of The Bottom Line, Tim Schuster examines some examples of employee benefits and who are using them, and if they’re having the desired result.

6 Types of Executive Compensation to Consider
6 Types of Executive Compensation to Consider

Tim Schuster discusses executive compensation, option grants, deferred compensation, fringe benefits and more. He also examines what to be aware of when preparing an executive compensation package.

You’re Not Using Social Media to Grow Your Business?
You’re Not Using Social Media to Grow Your Business?

The Bottom Line looks at how you can use social media to grow your business and examine the different communication platforms available including Facebook, Twitter and LinkedIn. You really need to develop website content and push it on social media platforms.

Pair of New Laws Impacts NJ Workers and Employers
Pair of New Laws Impacts NJ Workers and Employers

Tim Schuster, a manager in EisnerAmper's Private Business Services Group, discusses new NJ legislative initiatives happening in Trenton that you should be aware of. The first is the New Jersey Family Leave Act and the second is the increase in NJ's minimum wage.

Creating a Quarterly Planning Calendar
Creating a Quarterly Planning Calendar

In this episode of The Bottom Line, EisnerAmper Private Business Manager Tim Schuster discusses developing a quarterly planning calendar, including budget, tax planning and speaking with your trusted advisor. Review these concepts monthly from an accounting perspective.

The Importance of Having an Emergency Fund
The Importance of Having an Emergency Fund

In the wake of the government shutdown, Tim Schuster offers tips on creating an emergency fund. To avoid living paycheck to paycheck, Tim suggests putting money into a separate savings account, as well as a portion of any windfalls. Emergency funds should include medical expenses.

Why the Sandwich Generation Needs to Talk Finances
Why the Sandwich Generation Needs to Talk Finances

Tim Schuster from EisnerAmper’s Private Business Services Group talks about the family issues and financial burdens for members of the sandwich generation - those individuals who are responsible for raising their children as well as caring for aging parents.

New Jersey Sick Leave Goes into Effect
New Jersey Sick Leave Goes into Effect

As New Jersey initiates paid employee sick leave The Bottom Line examines the requirements for business owners. Some reasons for which employees can use sick leave include an employee's own personal medical treatment or legal services, or that of a family member.

Filling Employment Needs in a Sellers’ Market
Filling Employment Needs in a Sellers’ Market

EisnerAmper’s Private Business Services Group Manager discusses the current unemployment rate and the booming economy despite current trade tariffs. To help attract employees, businesses are offering incentives such as assisting with student loans to attract millennials.

Don’t Postpone Making Your Will
Don’t Postpone Making Your Will

EisnerAmper’s Private Business Services Group partner discusses estate planning and the need to have a will - from an online provider or an estate planning professional - to help your heirs understand your estate asset wishes and the Tax Cuts and Jobs Act estate tax thresholds.

Don’t Get Scammed By Someone Pretending to Be from the IRS
Don’t Get Scammed By Someone Pretending to Be from the IRS

The Bottom Line looks at some of the common IRS scams out there and what you should do if you fall victim to one of these scammers, including email and personal data hacks, ID theft and fraudulent returns. Contact your accountant if you think you’re a victim of a scam

High Court Rules on the Taxation of e-Commerce
High Court Rules on the Taxation of e-Commerce

The landmark Supreme Court decision in the Wayfair case on e-commerce taxation allows states to collect sales tax on e-commerce companies, even without brick and mortar locations in that state, affecting all e-commerce companies such as Amazon. Accountant guidance is suggested.

Employee or Contractor – The DOL’s Watching
Employee or Contractor – The DOL’s Watching

This podcast discusses the New Jersey Department of Labor and the employee or independent contractor (freelance work) classification under new Tax Cuts. A DOL audit might look at your Facebook and LinkedIn, and can also change your employee or contractor classification.

NJ Budget Mixes Some of the Familiar (and Not-So Familiar)
NJ Budget Mixes Some of the Familiar (and Not-So Familiar)

This episode of The Bottom Line looks at New Jersey Governor Phil Murphy’s inaugural NJ budget. The discussion includes the Governor's proposed New Jersey's state tax on Uber and Airbnb, addressing tax loopholes for hedge funds and New Jersey tax's effect on the gig economy.

Tim's Top Individual Tax Questions
Tim's Top Individual Tax Questions

In this episode of The Bottom Line, Tim Schuster discusses some of the individual taxation questions bubbling up from clients in the wake of tax reform including adjusted gross income changes, private business taxation, QBI, and the importance of talking with your tax advisor.

Top 7 Questions on Tax Reform
Top 7 Questions on Tax Reform

This episode of “The Bottom Line” discusses new tax reform changes including C corp and individual taxpayer changes, NOLs, double taxation and bonus depreciation. Tim Schuster came up with a top seven list of business tax reform questions he's been receiving from clients.

Retirement Savings Plans for Small Businesses
Retirement Savings Plans for Small Businesses

In this episode of “The Bottom Line,” Tim Schuster talks about the benefits of retirement savings plans for small businesses, including SEP IRAs, SIMPLE IRAs, and Solo 401(k) plans, as well as eligibility and contribution limits set for small business contributions.

What Is the State of Your College Savings Plan?
What Is the State of Your College Savings Plan?

Tim Schuster discusses how starting a college savings account – sooner rather than later – can help alleviate sticker shock for your child’s college education. He talks about the different state-sponsored 529 plans, what you can use the money for, the tax benefits and more.

Which Health Spending Account Is Right for Your Business?
Which Health Spending Account Is Right for Your Business?

EisnerAmper’s examines the differences between different Health Spending Accounts including HSAs, HRAs and FSAs. It is recommended you speak with your tax advisor about qualified medical expenses and pending tax reform's affect on health spending accounts.

SBA Loans for Improving or Expanding Your Business
SBA Loans for Improving or Expanding Your Business

EisnerAmper's Tim Schuster looks at several categories of SBA loans for working capital. He covers the loan approval process, SBA 504, real estate exclusions and how business advisors can help you make the most of the Small Business Administration (SBA) loan process.

How to Succeed at Succession Planning
How to Succeed at Succession Planning

EisnerAmper’s Tim Schuster tackles the issue of succession planning - Companies should have something written down for succession planning purposes as well as take into consideration estate planning, wealth management and valuation when creating their transition plan.

Plan Today for Tomorrow’s Disaster
Plan Today for Tomorrow’s Disaster

EisnerAmper's private business manager, Tim Schuster discusses the need for proactive disaster planning for private businesses, as well as business interruption insurance in the event that your disaster planning fails. FEMA offers online disaster planning recovery courses.

Welcome to "The Bottom Line"
Welcome to "The Bottom Line"

In this episode, Our private business services advisor Tim breaks down what a closely held business is, the different business formats such as LLC LLP and S Corp, and how this impacts the role of business advisors so your accountant, banker and lawyer will all be on the same page.