Every business from small home based entity to large organizations has accounting needs because it is the barometer of every business. The books of the organization tell you where your business stands, whether it is in profit or loss. Such important function of the business should be handled with up most care. Unfortunately, not all business owners have the skill and expertise to carry out accounting functions in their own companies. Also, the resources to fulfill these functions are very limited in small to mid-scale businesses. Accounting outsourcing is highly recommended for these companies. Outsourcing accounting companies hire specialized accounting personnel’s who have good knowledge and experience and it offers unbeatable benefits to you and your company.
Accounting outsourcing allows you to save up to 30% to 50% from your existing expenses related with hiring a full time accountant. Expenses apart from payroll such as desk, chair, stationery supplies and computer for your staff and employee benefits such as health insurance, social security check, training etc. These additional operating costs can be waived off because the trainings and technology upgrades are no longer necessary for outsourcing accounting services.
Accounting outsourcing has been implemented by several businesses with wonderful results. This includes both the large and small sized companies across industries like manufacturing, retail, real estate, logistics etc. Of course, you need to be properly informed about all the aspects related to outsourcing accounting. This includes short-listing what to outsource, selecting the right service provider, planning the handover to the service provider, and managing risks. In the beginning you can always start with a pilot project for a particular function and scale up at your pace.
Accounting outsourcing services also gives you the advantage of having instant access to accurately maintained and updated account books at any point of time. This comes to an advantage when you need to review the accounts at a glance during important decision making period or during the tax filing. It helps to have the company’s financial records in perfect order as it creates a favorable impression in the minds of the company auditors, the clients and customers, suppliers, investors, creditors and public in general.
One concern when outsourcing is the concern for data-security. This aspect is taken care of by following strict security measures in order to protect personal and financial information of the customers. Some service providers even offer legal no disclosure agreement for client safety. So considering these multiple benefits it indeed might be a feasible option to outsource the accounting work of your organization to a reliable and competent third party.
This strategy works as a cost cutting and so you can see significant cost savings. You will not have to hire professionals and much of your quality time will be saved. Outsourcing is an essential tool for businesses looking to grow without the investment in over-heads and staffing.