Many small businesses, startups, and entrepreneurs find it difficult to hire an accountant. Especially with the right skills to prepare your company’s financial statements, manage bank accounts, analyze financial data and prepare invoices issued. Nowadays it is even more difficult to find a qualified and suitable person at an affordable price. More than 1/3 of small businesses outsource their accounting. Interestingly, most small businesses that outsource are not comfortable doing their own accounting.
Although it is widely believed that accounting and bookkeeping should be done within the company. But it’s important to ask yourself whether you have the necessary skills and experience to do this job. And do your employees have enough experience to handle the increasing accounting tasks? Overall, 62% of small businesses believe they overpay their taxes. Based on this fact, you might consider outsourcing accounting services to a company that has the relevant knowledge and qualifications. Also, which company can do the same work qualitatively and more profitably. Some of the benefits of outsourcing accounting services are below:
Cost Effective
In general, most companies view outsourcing as an additional and therefore unnecessary cost to their business. It’s not the right perception at all. In fact, it’s the opposite. Our customers who outsource their bookkeeping are willing to save on costs, but above all without sacrificing quality.
The savings achieved through outsourcing can usually be significant as most companies are able to offer their services at lower prices (usually due to lower labour costs at their location). Also, outsourcing saves you money on paying salaries, taxes, office supplies, and benefits for the full-time or part-time employee. You only pay for what you need. There is no lost productivity cost that comes with hiring full-time employees.
Access to Finance and Accounting Knowledge
You should outsource your accounting and finance as it allows you to gain the expertise your business needs. Outsourcing companies employ highly skilled accountants and financial professionals. They don’t have distractions like other people. They will see a variety of companies and then be able to share best practices with you.
Most organizations have fluctuating needs at the accountant, accountant, controller and CFO levels. You can’t rent any of that. Accounting and finance outsourcing allows you to get services as needed. While you will need limited CFO and controller services, you may need additional bookkeeping and accounting services. Monitoring ensures that all accounts are managed correctly, allowing you to progress faster and stronger.
Get More Hours Back Into Your Day
An outsourced accounting professional can take over the management of financial processes that are currently performed in-house. Their expertise takes the guesswork out of tasks like reconciliation, budgeting, payroll, and debt management for added peace of mind.
As a busy small business owner, there just aren’t enough hours in the day. Outsourcing these tasks to an accountant who is knowledgeable about accounting systems frees up your schedule so you can focus on business development and other important initiatives that you never seem to have time for. And as your business grows, you can increase your ownership of your business as needed.
Saving Time for the Company
Entrepreneurs can save time by outsourcing the accounting services and finance function. Listen, we all have busy lives. Many of us focus on marketing, sales and operations. Outsourcing your accounting can save you time by eliminating the need to manage accounting and finance staff. You do not have to give your employees any instructions. Outsourced employees are knowledgeable and can help both the company and themselves. This leads to more resources for you as the owner and other parts of your business.
They know what will have the biggest impact on you and their goal should be to save you time by giving you the information that will help you make better decisions to grow your business.
Proactive Monitoring of Your Business Strategy
When you decide to hire accounting services, streamlined systems can be put in place to ensure you have a complete overview of the key metrics needed to make important business decisions quickly and efficiently. Rather than reactively looking at your books and wondering why you didn’t see a profit in the third quarter, have a clear understanding of the financial implications of your trading decisions. This allows you to be proactive and get a dynamic view of the next steps you need to take to scale your business and be profitable in the process.
Automation Technologies
Most companies use accounting automation software to save time. Save time, but above all reduce risks. Accounting automation minimizes human errors. Second, auditors in automation software receive real-time reports. They help identify potential problems and resolve them at an early stage. Third, it reduces the risk of internal fraud. Most accounting service providers are highly skilled in automation tools such as Quickbooks, Sage, Visma, Xero, Microsoft Dynamics, SAP, and more. If your accountants still only use Excel spreadsheets, you are wasting your time and money.
Access to Better Tools and Processes
The seventh benefit of outsourcing your accounting and finance functions is better processes and tools in your organization. A small organization tries to keep fixed costs to a minimum. By outsourcing this function, you can save money on more advanced tools to improve your business. The price of each tool is shared among many customers. See, it almost feels like the big companies have an unfair advantage. You have good tools and information.
As a small business, you try to put things together with plaster and duct tape. You have to be agile and have guts. When you outsource the accounting and finance function, not only do you have access to the tools, but the auditors will use these tools and bring processes to your organization. This is just one way to increase the efficiency of your business and your team.
Shed a New Light on Your Finances
A fresh set of eyes can help your small business analyze its finances. Outsourced financial professionals provide an objective perspective. They are not immersed in the day-to-day running of your business and therefore are not biased in assessing your fiscal health. His priority is to impart his financial knowledge so that his business can continue to grow and be profitable.