Finding qualified and reliable accountants for your business takes time and effort, but there is a faster and wiser way—outsourcing accounting. Outsourcing allows you to access a global talent pool and hire the right people every time.
There are numerous reasons why businesses choose to outsource bookkeeping and accounting services. However, they all share one desire: a better way of doing business. Outsourcing gives them that opportunity and, as is often the case, can provide benefits they weren’t expecting.
If a company wants to grow successfully and scale exponentially, its accounting and financial compliance functions must run like clockwork.
Here are some of the advantages of outsourcing accounting services to your company.
- Cost-Saving: Most businesses consider outsourcing an extra cost they don’t need to pay. It is not at all the right way to think about it. It’s the other way around. Our clients who outsource their accounting want to cut costs, but most importantly, they don’t want to lose quality. Most of the time, outsourcing saves a lot of money because most companies can offer their services at lower prices (typically due to lower labor costs at their location).Furthermore, outsourcing saves money on salaries, taxes, office supplies, and benefits for full-time or part-time employees. You pay only for what you require. There is no reduction in productivity costs associated with hiring full-time employees.
- Efficiencies. When a company outsources its accounting and bookkeeping to a competent and experienced specialist organization, it gains the ability to streamline its operations for maximum efficiency. Processing, negotiating, and dealing with complex functions in this manner can lead to not only improved efficiency in specific tasks but also increased overall business productivity.
- Time Management: As your business expands, you will spend more time managing your finances and less time scaling the company. Therefore, outsourcing administrative tasks such as accounting and bookkeeping allows you to concentrate your time, energy, and resources on developing business strategies. In addition, it will bring in more money and make it easier to meet new people and build customer relationships.
- Recruitment and training. Consider a world where staff recruitment, training, and onboarding are seamless. There will be no back-to-back days of candidate interviews. No lost productivity hours will be spent guiding newcomers through systems and processes.
- Scalability. The accounting service provider can scale your services without significant lag. For example, suppose your bookkeeping and accounting tasks exceed the number of functions for a single employee. In that case, you can easily hire more people without going through a lengthy hiring process.
Accounting and bookkeeping services are also charged on an hourly basis. It means you can change the number of hours without interruption.
- Automation Technologies. Accounting automation software is used by most businesses to save time. It saves time, but more importantly, it reduces risks:
- Accounting automation reduces human errors.
- Accounting software provides real-time reports to accountants. It will reduce the likelihood of internal fraud.
- Most accounting service providers are well-versed in automation tools such as Quickbooks, Sage, Visma, Xero, Microsoft Dynamics, SAP, and others. You are wasting time and money if your accountants still use Excel sheets.
When Should You Outsource Your Accounting and Bookkeeping?
- A small business does not need a full-time bookkeeper, but it does require someone with more skills than the office manager or receptionist can provide.
- A company of any size cannot find a full-time employee with the necessary skills at an affordable price.
- A growing business always looks for ways to expand its accounting and bookkeeping services.
- Temporary services are required, for example, extra assistance with end-of-year reports or if a full-time employee is going on vacation, maternity leave, etc.
