WHY OUTSOURCE ACCOUNTING RELATED TASKS?
Outsourced accounting is basically employing a service that supports a full accounting department experience. This usually includes everything from the day-to-day transaction coding, accounts receivable, accounts payable, payroll & taxation to managing financial reporting. Outsourced accounting teams use the finest practices to get the work done efficiently & effectively. Often at times, companies who outsource have discovered they can reduce the average time it takes to close their books each month, this gives them better visibility of their cash flow.
Below listed are the reasons that businesses may want to consider outsourcing:
- Access to the latest accounting technologies.
- Improved flexibility & speed of work.
- Controlled professionals & well-recognized procedures.
- Free-up internal resources.
- Enhanced risk management.
- Focus on core business strategies.
- Augmented Value-Added Services.
How does outsourcing work in accounting?
One of the benefits of outsourcing is that it gives you flexibility to get the services you require without having to pay for those you don’t. Usually, an outsourced services provider will start with an assessment to determine what you need & how best to help you reach your goals. Thereafter, a proposal will be provided, that outlines the services they can give & the respective costs. Sometimes this may include the implementation of new systems or business applications that will make operations much easier. At other instances, they may recommend changes in your accounting practices to improve internal controls or enhance efficiencies. Regardless, working with the right firm can make all the difference for you’re the growth of your company.
Many small businesses, start-ups, & entrepreneurs find it difficult to hire an accountant. Especially with the right skills to organize their company’s financial statements, manage bank account operations, evaluate financial data, & arrange the outgoing invoices. These days, it is even more challenging to find a qualified & eligible person at an affordable rate.
More than 1/3 of small businesses are outsourcing their accounting. Interestingly, most small companies who outsource are uncomfortable doing the accounting on their own.
Even though it is commonly believed that accounting & bookkeeping must be done inside of the business. But it is essential to ask yourself whether you have the necessary skills & experience to do this job. Also, do your staff has enough experience to effectively manage accounting tasks.
Many executive directors have observed various positive aspects of outsourcing bookkeeping & accounting services. Importantly, outsourcing such services should be without any adverse effects on their business, employees, and customers.
Benefits of Outsourcing:
- Cost-Saving Accounting Services
In general, most corporations believe outsourcing to be additional, & therefore an unnecessary cost for their business. Whereas, in fact, it is the opposite. People who are outsourcing accounting are willing to decrease their expenses but most importantly, without reducing the quality. The savings that outsourcing provides are quite considerable as most companies can offer their services at a lower cost.
Besides, by outsourcing, you save expenses on paying salaries, taxes, office supplies etc. You only pay for what is required. There is no loss in productivity costs that come along with hiring full-time employees.
- Eliminate Time & Costs of Hiring Processes
In house recruitment is a tedious process. It takes resources to manage it, from creating a recruitment strategy, selecting applicants to interview them. The recruitment process involves your business time & costs; & also the time you will invest to dedicate either to yourself & employee.
Many companies do not consider the time they spend looking for a professional Accountant. The time is equally correlates with the expense. It must be accounted for savings of outsourcing business processes.
- Expert Accountants & Bookkeepers
Outsourcing offers you the possibility to hire a professional with a higher level of expertise at an affordable price.
Outsourced accounting service firms continuously must continuously develop their skills & qualifications to stay competitive in the market. Imagine, 50 people working in the same office. They can easily share the new accounting trends, solutions, & tools. To add more, good accounting companies have more extensive access to training, courses, & they participate continuously. Moreover, outsourcing to an accounting firm is giving you access to a team of accountants. By choosing the outsourcing company wisely, you can be sure that your accounting is in the reliable and knowledgeable company’s hands.
- Scaling Accounting Easily
The accounting service providers have the amount of availability to scale your services significantly without any delay. For example, if your bookkeeping & accounting tasks exceed the number of functions for 1 employee, you can easily be enforced with the extra workforce. Without the need to go through a rigorous recruitment process. Moreover, accounting, & bookkeeping service providers are charging on an hourly basis. It means you can move up or scale down the hours without any disruption.
- Automation technologies
Most corporations use accounting automation software to save time. It will save time, but importantly, it reduces risks. Automating accounting is reducing human errors. Secondly, in automation software, accountants get real-time reports. They support in catching potential problems & resolving them on an initial stage. Thirdly, it will lessen the prospect of internal fraud. Most of the accounting service providers are highly qualified in the automation tools such as Quickbooks, Sage, Visma, Xero, Microsoft Dynamics, SAP & more.
How can we help?
An experienced accountant will always give advice on how to make accounting more cost-effective. We are your business advisors whether it be about taxation, accounting software or financial advice. By unlocking the potential and creating opportunities for growth for our clients, we contribute to their business achievements. With a dedicated team, we provide experts who understand key businesses and provide their expertise in terms of accounting, taxation, audit, & consultancy. Contact us today to help you with all your accountancy & bookkeeping requirements!