Are you looking for better ways to focus on increasing your business profits? If so, one of the easiest decisions a business owner can make is to outsource their accounting services. In recent years, it has become increasingly popular for companies to outsource their accounting. It is increasingly common for teams to work remotely as they transition to digital solutions. In this guide, we will describe what an outsourced accounting service is and what are its benefits.
What is Outsourced Accounting?
Outsourced accounting occurs when a business hires a third party (outside of its business) to complete the accounting and finance function of the organization. Outsourced accountants handle all financial functions of the business including; Bookkeeping, payroll, financial reporting, management accounting, taxes, accounts payable and accounts receivable, tracking receivables and other accounting related services. Now let’s see what its advantages are.
1) Make Better Use of Time
By outsourcing your accounting services, you save valuable time that you can better use to manage your business. Overflowing with back-end office operations books can be a huge hassle that robs the organization of valuable time. This time can be better used for day-to-day operations and attracting new customers. Eliminate the distractions of your office’s internal accounting by outsourcing your accounting.
2) Save Money For Your Business
Hiring a full-time accountant can be very expensive. If you’re hiring to staff an in-house accounting department, you need to consider the inevitable overhead that comes with it. In addition to their base salary, you get insurance, bonuses, paid time off, vacations, and other benefits that come with hiring employees.
Budgeting for these types of expenses is nearly impossible for many small businesses. Outsourcing your accounting services can be more cost-effective because it gives your business access to high-quality, well-trained professional finance professionals at a fraction of the cost. This gives you a good reason to outsource accounting.
3) Eliminate Time and Expense From Hiring Processes
If you look at the photo, the recruitment process is a rigorous task. It takes resources to manage it, from creating a recruiting strategy to selecting candidates to interview. The recruiting process costs your company time, it costs money, and you have to spend time either on yourself or on the employee.
Many companies do not take into account the time they spend looking for a professional accountant. And time is also correlated to cost. Cost savings from business process outsourcing should be considered.
4) Access to Specialized Knowledge in Finance and Accounting
You should outsource your accounting and finance as it allows you to gain the expertise your business needs.
Outsourced companies employ highly skilled accountants and finance professionals. They don’t have distractions like the others. They will see a variety of companies and can then share best practices with you.
Most organizations have a fluctuating need for accountants, bookkeepers, controllers, and financial managers. You cannot rent them all. Accounting and financial outsourcing allow you to receive services as you need them. Although you need limited CFO and controller services, you may need additional bookkeeping and accounting services. Monitoring ensures that all accounts are managed properly, allowing you to progress faster and more robustly.
5) Outsource Accounting and Get Better quality of work
When you outsource, you entrust your accounting to specialized professionals who are familiar with GAAP standards, payroll requirements, and proper management of reports and records. The performance of the outsourced accountant is maintained at a high level; Not only does the accounting function require such a standard, but the reputation of the professional accounting service provider also depends on it.
6) Scale-Up Easily
If you are a growing business, an outsourced accounting firm will make your life much easier. Accounting operations can be tricky, and when you scale, it’s easy to get overwhelmed and caught up in all the moving parts. When you hire an accountant, you’re working with an experienced company that’s done it many times before.
7) Outsource Accounting to Reduce fraud
According to the Association of Certified Fraud Examiner study published in 2012, the most common victims of fraud are small private businesses with fewer than 100 employees with a staggering median amount of £147,000. This is because most small businesses don’t have access to a controller or CFO who could review KPIs and metrics that show abnormal activity in transaction and billing data.
8) Shed New Light on Your Finances
A fresh set of eyes can give your small business an edge when analyzing your finances. Outsourced finance professionals provide an objective perspective. They are not immersed in the daily management of your business and therefore have no bias when it comes to assessing your financial health. Their priority is to pass on their financial knowledge so that your business can continue to grow and be profitable.
9) An Accountant is Your Advisor
A good accountant will always offer advice on how to make accounting more efficient. Sometimes he works with a few companies and suggests a great experience to another client whether it’s taxes, accounting software or even financial advice.
10) Access to Better Tools and Processes
The tenth benefit of sourcing your accounting services is better processes and tools within your organization. A small organization tries to keep overhead costs to a minimum. By outsourcing this function, you can save money on more advanced tools to improve your business. The cost of each tool is distributed among many customers. See, it almost feels like big business has unfair advantages. You have access to great tools and information.
As a small business, you try to piece things together with band-aids and tape. You have to be agile and have courage. When you outsource the accounting and finance function, not only do you have access to the tools, but the accountants will use those tools and bring processes to your organization. This is just one way to increase the efficiency of your organization and your team.
11) Improve Security
By outsourcing your internal accounting functions to a professional accounting service provider, the security of your books and records is increased as the professional implements strict security measures to ensure access control, confidentiality and redundant backup of data. Compare your internal processes related to confidential information and data security against fire, theft and hackers with the processes offered by an experienced and reputable service provider; You will be surprised when you discover weaknesses related to your internal accounting.
12) Automate and Go Digital
Working with an outsourced accounting team also gives you access to all accounting software and systems and allows you to streamline processes and automate tasks. You can also reduce your carbon footprint and environmental impact by going digital and reducing paper waste. This saves money on warehousing and saves time by reducing filing and storage.
Conclusion
There are significant benefits for clients who choose to outsource their accounting services. Accounting and bookkeeping are an important part of business, but they are also complex. This requires time and specific knowledge. Without experience in accounting, many errors can occur and cause your business to decline or even go bankrupt.
Advantax Accountant is a reliable accounting service provider for small and medium-sized businesses. You can view our accounting services or leave us a quote.