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: 

1. 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.