Outsourcing is no longer a new practice in every industry and business. Outsourcing is the process of delegating specific operations or tasks to another company. One of the most common outsourced services in the business world is outsourced accounting.
Situations where outsourcing your accounting services should be considered:
#1 When you spend too much time managing your books
As accounting is an operational task rather than a money-making task, business owners or staff (especially in SMEs) should spend more time growing the business rather than devoting much time in handling billing, payroll, deposits or managing basic financial statements. It is hence, a no brainer to outsource your accounting services to a professional company so your team would have more time to focus on core business.
#2 When you need access to high cost intellectual consultation and services
Accounting and bookkeeping can be a tall order, especially for individuals who do not come from the finance and accounting background. Hence, most companies will hire an in-house accountant or accounting assistant. However, this can be costly to some companies, especially for start-ups and SMEs. We all know how much hiring headcount costs. It is therefore essential to further evaluate if it’s really necessary to have a full-time accountant sitting in-house when the business is still growing. The good news, accounting outsourcing service is always at your disposal.
#3 When your company has a high turnover rate
It is not uncommon to see small companies have a high turnover rate. When a company’s accountant comes and goes quickly, and gets replaced by another person, it takes time for the new accountant to fully understand the company’s financial statements. There would be more time given for training and handing over, hence, less cost effective. Again, this is when accounting outsourcing services come in handy.
Benefits of accounting outsourcing
Considered what has been discussed above, hiring an outsourced accounting service can have the following benefits:
#1 Outsourcing your accounting is more cost effective
Accounting is a service that every company requires, a business owner either outsource this or hire an in-house employee to get it done. Outsourcing your accounting can definitely save you recruitment expenses. With reduced costs, it helps to increase the profitability of your business in the long run.
Furthermore, outsourcing accounting enables you to pick and choose the types of services that you need. This allows businesses to save more money and can deploy resources to other important aspects of the business.
#2 Accounting outsourcing enables focus on core business and innovation
As mentioned earlier, in cases where too much time spent on managing and maintaining books, businesses may be distracted from focusing on the core business function – to grow revenue. Working with outsourced professional accounting firms that provide you higher quality accounting information can help you and other stakeholders to make better business decisions.
#3 Access to professional services without needing to worry about capacity issues
Getting your accounting services outsourced ensures you to access professional consultation and services even when there is no headcount for an accountant in your company. It also helps to reduce fraud. This does not happen often and not everywhere, but there could be a possibility that fraud may happen, especially in businesses with one person managing the financial statement. This is because it’s easy to manipulate the books or have a fake expense go unnoticed for a long time.
With all the points mentioned above, there is no reason not to outsource your accounting services. Get in touch with us for professional accounting solutions to find out how we can help your business today!