Depending on the size of a company, accounting services can be outsourced to professionals working for business support services providers. A business owner who is focused on the growth of his or her company is aware of the need and value of outsourcing. Companies can assign some of their bookkeeping and accounting activities to outside accountants without having to hire them in their firms. These can be done on an as-need basis. That is, they can choose a plan with the support company offering outsourced accountancy services.
If you are a business owner thinking of outsourcing your accounting, this article provides information on outsourcing and six reasons why you should outsource an accountant.
Six reasons to outsource an accountant
Running payroll, tracking AP and AR, and other multitudes of accounting functions can drain your resources. Thus, it is advisable to outsource an accountant to provide more efficiency and quality. Here are six reasons why you should outsource an accountant.
When a company outsources its accounting tasks, they are handled by experts who are fully aware of the GAAP standards, payroll requirements, proper reporting, records management, etc. One can be sure that since the reputation of the service provider relies on the efficiency of the services they provide, their products are top-notch and of high quality. These providers hire professionals with more expertise in accounting than in-house employees in most companies.
Efficiency of personnel
One of the perks of outsourcing is that the staff and resources can focus more time and energy on doing other productive activities, core services, et cetera, while routine accounting tasks are handled by the providers. Outsourcing will reduce the burden on accounting staff working an extra shift to meet up with the required work or hiring part-timers. While the staff work toward revenue generation, one can pay providers to handle only the required accounting services.
A company can avoid the excess cost of operations when it outsources its accounting services. Although hired staff may seem cheaper based on their monthly salary, taking into account the total costs of hiring, training, benefits, payroll taxes, etc., it’s clear that the company pays more to retain its in-house accountants compared to paying outside providers of the same services. With outsourcing, one is sure of getting what he or she pays for without the need for supervision.
Prompt and reliable services
Choosing to outsource is not only cost-effective, but a good service provider also ensures proper and timely delivery of the services. All tasks meet the requirements of the company, and at the timelines agreed upon. Unlike an in-house accounting team, outsourcing providers must carry out the tasks they are paid to do in the event of any circumstance such as sudden sickness.
Experienced and expertise guidance
Aside from handling accounting tasks like managing your account, when a company needs advice on projects that require expertise like implementing a Key Performance Indicator report or setting up a stock option plan for its employees, a service provider comes into play. A reputable accounting service provider must be current on the latest systems, accounting rules, and regulations, to inform clients of changes in commercial law that can affect the business. They also offer ways of making business operations more efficient and effective.
Outsourcing removes the traditional accounting minutia which slows the productivity of staff. By doing this, a company becomes open to an environment where its employees can be focused on working towards the generation of company revenue which will in turn grow the business. For a business to expand and grow, the owner must enable a working environment for its employees to be driven toward more revenue generation.