Top benefits of outsourcing accounting and bookkeeping services for your business
Accounting and bookkeeping can be a daunting task for business owners. Their ambit engulfs a lot of things to look after. A decent grasp on accounting and bookkeeping basics will come in handy as a key part of their company’s success for a business person. Proper accounting and bookkeeping help businesses stay organized, budget resources, prepare for taxes, and facilitate better decision-making. A glance at the latest data shared by Statista shows that revenues of accounting, bookkeeping, and allied services in Canada have grown from CAD 15.27 billion in 2012 to CAD 21.41 billion in 2019. Part of the growth is contributed by the fact that more and more businesses have started using professional services. As companies run on money, books and accounts management is a crucial factor to keep tabs upon.
Now that the importance of accounting and bookkeeping is understood let’s look into the options businesses have. Hiring a full-time accountant and bookkeeping professional may be a daunting task. It simply may not justify the investment for the current size of the company. So when should a business look at outsourcing their accounting and bookkeeping?
For starters, when the scale of operations grows, the transactions in the books and accounts grow proportionately. As matters tend to become tedious and tricky, the business should start exploring outsourcing options. Secondly, businesses should outsource when managing books and accounts internally are no more feasible at an affordable cost. Thirdly, an extra set of trained eyes can help you identify errors and frauds in the company.
Outsourcing accounting and bookkeeping to a professional firm provides the business with advice that is backed by knowledge, skills, and experience. Here are the top benefits of outsourcing accounting and bookkeeping services for your business:
- Cost affordability
Contrary to popular belief, outsourcing operations to professional firms helps reduce costs. It is always economical when compared to hiring in-house accountants. Instead of paying by the hour, businesses only pay for the outsourced professional’s work. Also, there is no need to have an allocated office space, supplies, travel expenses, etc. Hiring in-house accountants carry a risk of getting limited expertise, based on the staff’s personal experience only.
There are costs involved even in the hiring process deployed to identify the talent available in the market. One has to advertise the job opening, sift through resumes, spare time for interviews – which required additional work for the HR function. Almost all accounting work is carried out using computers and network technologies. As old tech becomes redundant, the need to upgrade is always a cost issue for the business.
Outsourcing companies can easily justify purchasing licenses of enterprise-level software and supporting technologies within low service costs.
- Time Savings
As the business grows, the time spent on managing fund transactions seems to go through the roof. And outsourced professionals can save the business a lot of time by taking care of the transaction monitoring and reporting responsibilities.
- Focus on Core competencies
Let the outsourced professional focus on their core competencies of managing accounting and bookkeeping for the business. Let the management and resources focus on their own core competency, i.e., carrying out the business and making money.
When a business has in-house accountants, the team takes time to hire the right candidates, train them and finally have a bigger team. Thie time lag and additional expenses need to be factored in when planning for business expansion. However, the outsourced professional firm will readily have availability fo additional resources to work on the business transaction as soon as the need arises. During the downturn, outsourced work responsibilities can be readily reduced without issues. This may not be the case when a business finds it hard to justify the presence of extra accountants.
- Fewer chances of a fraud
When an internally hired accountant intends fraud, they can easily go for it as they know the system’s shortcomings. A professional outsourcing firm can cycle their staff who work on the books and accounts of a business. Additionally, the professional firm will have multiple tiers of resources, ensuring the requisite checks and balances that reduce the chances of fraud.
There are significant benefits for businesses that choose to outsource their accounting and bookkeeping work. We offer a wide range of customizable depending on the specific needs of your company. Let’s connect and explore the possibilities!
Bookkeeping Lead offers virtual bookkeeping & accounting services to small businesses looking to scale up their business while improving their organization efficiency.
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