Does Outsourcing Help My Business Save Money?

Yes, outsourcing your business' accounting function help. An outsourced accounting services provider can assist a small business owner like you save anywhere between 30% - 40%. You benefit by saving time, money, and effort.

As a small business owner, you should focus more on your competitors, delivering products or services, and ensuring customer satisfaction. These are the things that help you grow your business. To do so, you need to lower involvement in completing non-core tasks like accounting. Many outsourced accounting services firms offer their experts for the job.

Benefits of Appointing Outsourced Accounting Services

Let us take a fast peek at what happens when you let the experts from an outsourced accounting firm work on your books.

• Experts: With outsourced accounting, your business' books are updated by experienced accountants. You may not have the budget to hire these professionals for your business full-time.
• Frauds: Accountants install reliable internal controls and processes to prevent internal fraud. It saves you thousands of dollars in a year.
• Goals: Outsourcing saves your limited time. You get to reassign resources to improve core strengths leading to the core goals achievement. Hiring experts naturally increases productivity.
• Stress: You are responsible for regularly updating books and annual filings within due dates. Hiring an outsourced accounting services firm takes the worry out of the task.

In-House Accounting is Costly

Investing in an in-house accounting department will help keep your business's financial data confidential. However, the cost of maintaining it outstrips the benefits.

Overhead Costs

Installing a full-time accountant for the business' bookkeeping and accounting function leads to increased overhead expenses. And you need more of them for maintaining the back office, which increases the human resource management. You also need to invest in infrastructure like a computer, accounting software, internet, office space, Etc.

You have to invest in hiring and training them. You must spend on employee salary, benefits, provident fund, levies, Etc. When a business grows, more significant issues start cropping up like collections, cash flow issues, end-of-the-month closing, Etc. They may be unable to deal with these relying on their limited and transactional knowledge.

With outsourcing, you get the support of an entire team of bookkeepers and accountants who take care of such issues day in and day out. They have updated knowledge of changes in compliance-related rules and regulations and know how to put them into practice. Relying on these professionals certainly relieves you of stress.

Yes, you have to pay for outsourced accounting services. However, in the long run, these are affordable.

Mistakes, Penalties and Internal Frauds

As per the experts, businesses should avoid letting complete control of the accounting department in the hands of one or two employees. It leads to mistakes and penalties. The most affected are the small and medium-sized businesses that suffer from internal fraud and lose considerable money.

The owners can avoid these issues by appointing more accountants to separate powers and verify the books. They also need better internal controls, well-defined accounting processes and tools to prevent fraud. This is due to the inability to hire enough people to adequately separate powers and establish checks and balances. However, it raises the overhead costs.

Appointing outsourced accounting services helps businesses in securing and streamline their accounting function. It helps them avoid mistakes and penalties and put checks on internal frauds from happening.

Wasting Resources

Execution of bookkeeping and accounting processes takes time and money. The businesses also need to bear the opportunity cost when they opt for 100% in-house accounting. If they outsource the work, they can use the saved time and money for a marketing campaign, fund a project, improve productivity, Etc.

Outsourced Accounting can Put You on the Right Path

Your outsourced accounting services provider knows the market trends. They can identify new ways to economise, boost revenue, and help you make more profits. You can leverage their industry-wide experience to set better goals and make data-driven decisions to grow your business.

Use Outsourced Accounting Services as Your Back Office

Outsourced accounting services providers are thorough professionals. You can depend on them for timely bookkeeping and accounting. They are also only a phone call away. Depending on your business needs, they can up or downscale their services to you.

Outsourced accounting services firms are experts in pinpointing your business drivers and can give you actionable insights for your business's success. Hiring them is like creating a charged back office to care for your business' accounting needs.