The biggest challenge faced by Small businesses, start-up companies and entrepreneurs is finding the right accountant, someone who possesses the right skills to prepare the financials and analyze them, manage the operation of bank accounts, ready the outgoing invoices and that too at an affordable value.
Therefore as an alternative, many of these businesses have opted for outsourcing accounting and bookkeeping services. While it is believed that accounting and bookkeeping services must be undertaken inside of within the business organization, but one must ask themselves the question, do you really have what it takes to do the accounting and bookkeeping services of your own business.
Nearly 62% of small business owners are under the impression that they are overpaying their taxes. Thus, for this reason many executive directors have felt compelled to outsource their accounting and bookkeeping services to third party services.
Some of the compelling benefits of outsourcing accounting and bookkeeping are
1.Cost-Effective Services
It is a myth that outsourcing would send up the company’s expenditure. Rather, by opting to outsource accounting and bookkeeping services, small businesses can save money on payment of salaries, taxes and benefits provided to full-time and part-time employees. You pay for what you actually need. Thus, there’s no loss in productivity costs that usually accompanies the hiring of full-time employees.
2.Time Saving
As the business begins to expand, you need to make more time to manage your finances and reduce the time spent on scaling the business. Hence, by outsourcing accounting and bookkeeping it’ll enable you to focus your time and resources on coming with business strategies. In this way, you can get your accounting done, while simultaneously indulging in networking and expanding your business.
3.Eliminates the Pain-Staking Hiring Process
Recruitment is a demanding and pain-staking process, going through stacks of resumes and profiles. It takes resources to manage it. Thus by outsourcing accounting and bookkeeping, it reduces the cost, time and resources that would be possibly wasted looking for the right candidate to handle the business’ financials, outgoing invoices, bank accounts, etc.
4.Expert & Experienced Accountants & Bookkeepers
Outsourcing accounting and bookkeeping, enables to you to take yup services of a experienced professional at an affordable price.
These companies that undertake outsourced accounting and bookkeeping services often undergo changes, keeping themselves updated in terms of their skills and technology, which in turn helps them survive the market competition. By opting for outsourced accounting and bookkeeping services you can be assured that your business’ accounting is in reliable and experienced hands.
5.Scaling Accounts With Ease
The accounting and bookkeeping service providers possess the right amount of availability to scale your services without any glitch. For instance, if your bookkeeping and accounting tasks go beyond the capacity of a single employee, then you can be reinforced with added workforce, and that too by avoiding the pain-staking process of recruitment. Besides, the outsourcing services charge at an hourly basis, meaning that you can scale up or down the hours.
6.Automation Technologies
Most services engaged in catering to outsourced accounting and bookkeeping services, have changed with time. Keeping up with the technological services, they are now utilizing accounting automation software to save time and survive the market competition. These softwares have been devised to save time, resources, minimize the risks and scope for human errors.
Further, this software enables accountants to acquire real-time reports, assist in diagnosing potential glitches and resolving them at an early stage. This would minimize the possibility of internal fraud. Some of the automation tools that are utilized are Quickbooks, Sage, Visma, Xero, SAP, to name a few.
Gone are the days when excel sheets were used!
7.Your Advisor The Accountant
A good, experienced accountant will always advice you as to how to make your accounting more efficient and less complex. These ideas are usually derived from the accountant’s own experience of having with a couple of companies and businesses. These advices touch upon the aspects of taxation, usage and updation of accounting software or even financial advice.
To conclude
While the benefits are indeed compelling, should you choose to outsource your business’ accounting and bookkeeping services. From cost-efficiency to scaling of the number of functions, it truly reduces the workload on the businesses.
Accounting and bookkeeping are an essential part of business, but at the same time complex. They require specialized knowledge and services of experienced accountants, who are well-updated with the trends of accounting softwares and have the potential to survive the market competition.
