Introduction to Outsourcing Accounting
Many small businesses, start-ups, and entrepreneurs find it challenging to hire an accountant. Especially with the right skills to prepare their company’s financial statements, manage bank account operations, analyze financial data, and prepare the outgoing invoices. Nowadays, it is even more challenging to find a qualified and eligible person at an affordable rate. More than 1/3 of small businesses are outsourcing their accounting. Interestingly, most small companies that outsource are not feeling comfortable doing accounting on their own. Even though it is commonly believed that accounting and bookkeeping must be done inside of the business, it is essential to ask yourself whether you have the necessary skills and experience to do this job. Due to this fact, you might consider outsourcing accounting services to a company with the right knowledge and qualifications, many small business owners have noticed various positive aspects of outsourcing bookkeeping and accounting services.
7 Benefits to Outsource Accounting and Bookkeeping Services
1. Cost-Saving
In general, most businesses consider outsourcing to be additional, and therefore an unnecessary cost for their business. It is not the right perception at all. In fact, it is the opposite. The savings that outsourcing usually provides can be quite considerable. By outsourcing, you save money on paying the salaries, taxes, office supplies, and benefits for a full-time or part-time employee. You only pay for what you need.
2. Eliminate Time and Costs of Hiring Processes
If you look at the big picture, the recruitment process is a rigorous job. It takes resources to manage it, from creating a recruitment strategy to selecting applicants to interview them. The recruitment process costs your business time. Many companies do not consider the time they spend looking for and training an Accountant, time is money and this must be accounted for when calculating savings of outsourcing business processes.
3. Saving your Time
As your business grows, you will find yourself spending more time managing your money and less time scaling the business. Therefore, outsourcing administrative tasks like bookkeeping and accounting help you to focus your time, energy, and resources on creating business strategies, this would bring more revenue, as well as stronger relationships with your customers.
4. Expert Accountants and Bookkeepers
Outsourcing may offer you the possibility to hire a professional with a higher level of expertise at an affordable price. Outsourced bookkeeping and accounting service firms continuously have to improve their skills and qualifications to stay competitive in the market. Moreover, outsourcing to an accounting firm is giving you access to a team of Accountants. Therefore, for a fixed price your company gets a team of accountants, not merely one person to deal with different kinds of tasks.
5. Scaling Accounting Easily
An accounting service provider has the availability to scale your services significantly without any lag. For example, if your bookkeeping and accounting tasks exceed the workload of 1 employee, you can easily be provided with extra workforce without the need to go through a rigorous recruitment process.
6. Automation technologies
Most businesses use accounting automation software to save time. It will save time, but most importantly, it reduces risks. Automating accounting helps to minimize human errors. Secondly, with automation software, accountants get real-time reports and assistance in catching potential problems and resolving them at an early stage. Most accounting service providers are highly qualified in the most commonly known automation tools such as Quickbooks Online, Intacct, and more. Moreover, you can even automate the Account Payables process by utilizing Bill.com or similar software.
7. An accountant is your advisor
A good accountant will always provide advice on how to make accounting more efficient. Sometimes he might work with a couple of companies and propose an excellent experience from another client. Whether it is about taxation, accounting software, or even provide financial advice.
