In today’s competitive business climate, companies need to weigh up costs and benefits when making important decisions. Executives have recognized that keeping operational functions in-house is not always the most efficient practice. As a result, business functions have been outsourced to a greater extent than in the past. The outsourcing of accounting and payroll functions is no exception.
Outsourced accounting has become a popular option for small and medium-sized enterprises that want to lower overheads without compromising efficiency. Many business owners use the savings in overhead costs by hiring outsourced accounting professionals with high levels of expertise to take advantage of savings.
What Does Outsourcing The Accounting Capacity Mean?
When the right organization is selected for outsourcing, the functions can sometimes be customized, and a part stays with the company. Companies with the limited resources and infrastructure to manage accounting and payroll functions can turn to other companies for expert help. Smaller companies may find this beneficial if they are not prepared to take on these functions. It could also be attractive for larger companies that want to save on staff retention.
Major Benefits of Outsourcing:
- Cost Saving:
Recruitment and maintenance of accounting staff can be costly. Due to the specialized nature of accounting and payroll processing, it may require several employees to perform certain functions. Accounting Directives require that each function must have its own internal control purpose, which requires additional staff. Companies often ignore the cost-effectiveness of outsourcing because they do consider the cost of providing benefits to full-time employees. If you outsource, you do not pay the equivalent amount that you pay to an in-house full-time employee. Consideration must also be given to eliminating social benefits, training, office equipment, time, and taxes.
Outsourcing partners will have access to individuals and companies with knowledge of the various business experiences and processes required to smooth accounting functioning. Companies that provide outsourcing services invest heavily in human resources. You have employees with expertise in accounting and payroll. These skills are available to their customers. They often provide guidance and advice on how to improve accounting processes.
A company can design a process to retain as much control as it has with an internal accounting group. The company can help decide on payroll deadlines, monthly closing dates, approval processes and workflows. Companies that perform outsourcing accounting functions tend to have a more flexible structure and schedule than their customers. When the opportunity presents itself, the company can exercise control over how the process is defined.
The reporting and analysis side of the company takes up a lot of valuable time in management. As the outsourcing team keeps an eye on maintaining accurate and compliant books, management can keep a check on managing the business. Managers can focus on business opportunities instead of managing internal accounting processes.
When a company decides to outsource its accounting, it expands its team by adding additional specialists. As for comfort and self-confidence increase, their team’s insights can prove invaluable. The right outsourcing company should be seen as an extension of the company’s resources.
Choosing a Partner?
Things to consider when choosing an outsourced accounting ﬁrm:
a. How many years the company is in the market offering services?
a. Do they specialize in your accounting software?
b. Do they specialize in your industry?
a. How do they manage the on-boarding transition process?
a. How convenient it is to expand the team when required?
a. How many people will be on your team?
b. What are their roles?
c. Do they provide a dedicated team?
a. Do they provide a reporting package that includes management reports customized to your organization’s drivers of success?
a. How do you communicate with your team?
b. Can you reach them when you need them?
a. Can they deliver a scope of work that matches your needs? Are they ﬂexible?
b. Do they provide daily/real-time service in addition to batch processing?
- Shared Access to Software Platform:
a. Some outsourced accounting service providers limit or reduce access to QuickBooks or other software.
FBSPL bookkeeping and accounting services help small businesses and nonproﬁts access timely, accurate ﬁnancials from a dependable team of accounting assistants that they can trust. We hire the best people to ensure the effectiveness of our work and the growth of our business.
Our accounting services include account payables, bank reconciliation, payroll, and office financial statements as and when you need them. We understand that each company is unique and therefore offers tailor-made services based on your diverse requirements.
Overall, outsourcing your accounting function is a smart move, especially in the current business climate. Outsourcing essential functions and business processes can be the catalyst you need to drive the growth of your organization. You save money and time and can spend a sizable portion of your day investing in business operations without worrying about internal processes.
Now is the time to outsource and delegate your accounting to the team that will help increase growth and profitability.
Get started with a customized proposal today and if you want to go for the reliable one: Schedule a Free Consultation