A number of business owners have certain prejudice when it comes to outsourcing. Some believe that the quality of outsourced work is poor, others that it doesn’t pay off, while some simply aren’t familiar enough with the benefits of outsourcing.
It is true that sometimes outsourced work is not up to the highest standards. However, this depends on what tasks you want to outsource. For instance, customer support often suffers when outsourced to agents who are unfamiliar with your products, services, or audience.
On the other hand, things are a bit different when it comes to accounting. Nowadays, expert accountants and finance professionals can be found in many different parts of the world.
The accounting industry, especially cloud accounting, is huge and there are numerous experts that can help you by dealing with your business finances.
Without further ado, let’s see why outsourcing your accounting is a good idea to consider.
Hiring dedicated experts that have proven experience and knowledge of accounting services is a bad investment. Skilled professionals that can provide your business with accurate and on-time financials are key if you want to keep track of every cent that goes in and out of your business.
Outsourcing accounting gives you access to high-profile financial knowledge while still not having to pay full-time executive-level wages.
Furthermore, leaving your accounting to experienced professionals that understand how to apply the best practices to your business makes your job much easier.
Even though outsourcing accounting can’t be seen exactly as a budget cut, it sure is cost-effective. Companies that have to work on a lean budget or suffer decreased cash flow are forced to make strategic choices to save money.
And since accounting is not a core process for many businesses nowadays, it would not be a bad idea to find a service provider to jump in. In this case, outsourcing frees up limited resources that can be focused on core competencies, as well as acquiring and retaining customers.
It is critical to use as much time as possible to focus on business goals, growth, and managing daily operations.
When accounting is outsourced, you don’t need to spend hours overseeing payroll and bills. In turn, this frees up a lot of valuable time that can be directed towards the management and growth of your business.
Saving on technology costs
When you outsource, there is no need to buy extra hardware and software for your accounting needs. A good provider has access to reliable accounting software and all the tools that are needed for smooth operations and processes.
Additionally, professional accountants have knowledge and experience that allow for proper use of accounting software and hardware.
Segregation of duties
When a single person manages your books, you open yourself up to mistakes and even fraud. This is something that is far from efficient in the long run.
However, when there is a team dedicated to handling your finances, the situation is different. When you outsource, you get to enjoy work coming from a team of specialists, including a controller or a CFO that checks the work to ensure that you are getting precise and timely information along with good recommendations.
Flexibility and scalability
A business owner can never know if the economy will remain stable and whether the business will be profitable.
There are situations when having a full-time accountant is affordable. But what happens when a company loses a big customer or the economy plummets?
Luckily, you can avoid some repercussions with outsourcing, as it builds flexibility and scalability into a business. Besides gaining access to the top talent in the market, your business becomes flexible and scalable in the long run.
When investors start looking at your business, it is of the utmost importance to show them in-depth and accurate financial details on paper. Thorough reports can sway them to invest, so it is important to have this kind of documentation to raise trust.
A team of accountants and financial advisors working for you around the clock can do that, providing every single document that you may need to get that long-coveted investment.
The situation is similar when it comes to bank financing. When a business is more mature and ready to grow, it often requires extra financing and these funds are often sought at a bank. To get a loan, you need correct and comprehensive financial reports.
With outsourced accounting, there is no need to worry whether your business will stay compliant with the ever-changing regulations. Following the latest trends and regulations is guaranteed by expert accounting companies so you can focus on other, more important processes.
A company with a solid business plan usually reaches growth stages quickly. Once sales start booming and the cash flow gets increased, this means that additional resources are required to handle the revenue.
To ensure that each aspect of the business is handled properly, the wisest option is to outsource.
Switching the function of accounting
CFOs are often pressured to provide support for their decision making and raise the standard of adhering to the accounting regulations and laws. Outsourcing helps a business achieve exactly that while also streamlining processes that are unnecessarily complicated and would waste a lot of time.
Peace of mind
With timely and accurate records and reporting, one can gain complete visibility into the financial health of a business. This allows for greater peace of mind and a more relaxed atmosphere among the management of a company.
With outsourcing, you can be assured that your financial information is correct, you avoid potential threats of fraudulent activity, and you always have access to a team of experienced accounting professionals that can be counted on.
Automation with little to no paper
Outsourcing accounting decreases your carbon footprint. And not only does it decrease the carbon footprint but it also reduces wasted paper, space, and time.
It is easy to take for granted the cost of paper and toner, as well as what amount of money is allocated to the maintenance of fax machines, printers, and copiers.
Now, think about how much less paper and storage space you would need if all your finances were available electronically. There is no doubt that the need for paper and storage space will decrease.
Less paper means better organization and efficiency, as well as more space for more important things.
Hopefully, this article has cleared any doubts you may have had regarding outsourced business accounting. With so many obvious benefits, there is no need to overthink whether you should start looking for a professional accounting company.
Give it a try and after a month or two, you will see how much easier and quicker it will be to run your business.