Top 5 Added Benefits of Outsourcing Accounts That Every Entrepreneur Should Know
Accounting is one of the most important yet a complex function for small medium enterprises. Hiring new employees for this may be the basic solution but not the sure shot solution which will work. Accounting tasks needs expertise knowledge; as it has been witnessed that employees are not able to sustain the grueling accounting complexities hence; there is lot of attrition. Hiring Outsouring Accounts makes sense.
Leave it to the PROS…….Outsourcing Accounts Service
First, there is a paradigm that needs to be broken before a good plan can be formulated for this new line of work. When it comes to effective bookkeeping and accounting systems, there is no such thing as data entry or basic bookkeeping. The old-school concept of write-up work was based on the idea of pushing down to the lowest level.
Accounting is the foundation of any business and clients benefit when this work is done by a professional adept in the entire process from source document to financial statement analysis. The accountant must be entrenched with the transactions to correctly classify, be current, consistent and compliant. Once your clients understand this concept, they’ll be more likely to see why outsourcing the entire accounting function makes sense.
There are significant advantages for clients who decide to outsource starting with cost efficiency. According to a survey conducted by Northwest Staffing Resources, an employee can cost approximately 57 % more than the stated wage due to the cost of benefits and the amount of time they are actually focused and on task.
Can It Work For My Business?
Through outsourcing accounts, more intimate client relationships naturally develop because there are more client interactions and the firm is privy to confidential information. Because of the trust created, the relationship may lead to other roles such as tax work and other accounting advisory services.
Accounting services can be a drain on the firm’s resources without implementation of a well-planned structure. There are four areas to consider when planning for this service line: resources, service philosophy, client relationship and fees/engagement agreement.
Outsource Account Will Be A Wise Decision
We all know the usual benefits of outsourcing accounting can bring to your business, such as:
- Time savings
- Reduced costs
- Less of mistakes/errors
- Most importantly more time for your BUSINESS.
However; there are added benefits to outsource accounting, that very few entrepreneurs know.
Below are Top 5 Added Benefits
1.Strategic Competitive Advantage
Having a highly skilled staff with a wide range of experience is at your fingertips when you outsource properly. You gain access to experts with a field of experience related directly to the needs of your organization with the right level of understanding for your specific projects and tasks, not only now, but as your needs evolve. As well as being experienced, an outsourced staff is oriented to deliverable and deadlines. They work with a service mentality.
There is no need to make hefty investments in technology internally and along with outsourced staff comes access to proven, reliable accounting systems, configured to your industry and customized to your business. Data is managed securely and at off-site servers. You don’t need to worry about stable connectivity or additional IT support, plus nightly back-ups and a disaster recovery plan are often part of the package
2. Control & Stability
When this work is outsourced properly, you no longer need to worry about theft and separation of duties. There is no need to periodically rotate staff and conduct outside reviews or audits. Cash handling and bookkeeping, manager approved write-offs and adjustments, purchasing and credit functions are all separated, bringing confidence to your business functions. You’ll have better accountability and control of company assets.
Ultimately when you outsource accounting functions, you are hiring a company, not a person, which limits risk, avoids the problem of turnover, and provides back-up for many positions. It also gives you access to senior finance professionals who will understand performance, budgeting, cash flow tools, and give advice. You’ll enjoy lower stress, be better able to manage risk, and can enjoy confidence that you will pass audits.
Outsourcing your accounting functions means bringing on a partner that will protect your business interests. An outsourced partner can clear obstacles that might otherwise divert time and attention away from strategic objectives and growth initiatives.
3. Compliance Benefits
No matter what type of business you have, compliance with business tax laws is a must. Certain benefits of bookkeeping, depending upon your situation, includes the ability to pay income taxes, payroll taxes, workers’ compensation and sales taxes. You’ll be less anxious about your bookkeeping records if you have outsourced accounting firm working for you.
4. High Level of Accuracy
Outsourcing accounting services can be quite beneficial when it comes to generating accurate results. This, in turn, ensures better management of back office functions. Dedicated staff in outsource providers handle accounting and payroll services smoothly and efficiently.
5. Get Access To Top Systems
Outsourcing your bookkeeping operations gives you more access to the top tools in the industry. Most businesses can’t afford to pay for the extremely expensive bookkeeping programs nor can they afford to spend the time keeping up with changing laws and regulations. By outsourcing, you’re essentially purchasing those tools and that knowledge by proxy, but it’s even better—you don’t have to actually do any of the work. Plus, these top systems create nightly backups and keep organized records and books for years.
Outsourcing accounting function is another way to solve this dilemma. It lets you acquire the skills of experts without the heavy costs and time constraints. Nowadays, more companies enjoy the benefits of outsourcing their accounting services.
There are companies that outsource across the accounting functional landscape and end up with sloppy work produced in remote geographies by unqualified personnel. Outsource your accounting functions intelligently and you will balance risk and reward while evaluating what work will be outsourced and what will remain in-house.
The scope of services that should be outsourced can vary considerably, but almost any combination will provide significant relief in time and cost savings while delivering measurable value and process improvement.
Outsourcing accounting allows you to expand or cutback in the blink of an eye. Whether you’re looking to grow your business or cut down on spending, having a reliable team at your behest, providing you with different plans and options will help you achieve your goals. Outsourcing provides flexibility that in-house bookkeepers just can’t provide.
It is a mantra drilled into the mind and hearts of SME Joinup team members: walk the extra mile. Whether it is implementing a new accounting software or ensuring a smooth or transition a complex project rapidly, we go out of our way to make it work. And when our clients tell us the reasons why they are happy with their decision to outsourcing their F&A functions to us, we feel content and appreciated.
Image source:Baltic Assist
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