Farwah Jafri | May 16 2021
There is no doubt that accounting is one of the most time-consuming and complex operations in business management. Not only do you need to record all transactions accurately in the correct ledgers, but even the slightest errors can cost you significantly in terms of time and money when trying to fix it retrospectively. It is widely cited as one of the business processes that are best suited to outsourcing because of the convenience and efficiencies it brings when your business accounting and bookkeeping is managed by experienced professionals at a cost far less than that of trying to do it in-house. Let’s look at a few of the reasons why business owners should definitely consider outsourcing business accounting:
Most outsourced financial management services consist of dedicated teams of accounting and bookkeeping professionals working collectively to ensure that their clients receive the best possible services for their buck. Moreover, if the business owner has any queries regarding their finances, their accounting professional is just a call or email away and can quickly respond to questions or requests for additional information.
Accounting outsourcing allows businesses to:
The difference you’ll notice in the ease of doing business and the peace of mind from knowing your problem areas are in the hands of experts will be enormous.
It’s incredibly essential for a business owner to be aware of the financial standing of his / her business to make decisions to invest, purchase, hire, expand, etc. But this does not mean that you should be devoting all of your time in tracking every single dollar that goes in and out of your business. After all, you did not start your business venture just to get bogged down in number crunching.
With accounting outsourcing, you and your entire work staff will be able to focus on the stuff that matters the most, and that is running your business and ensuring steady financial growth. Businesses that utilize accounting outsourcing services are able to better focus on increasing their revenue and generating positive customer feedback.
A reliable accountant helps you have a clear picture of where your cash is flowing from and what your expenses are. He / She uses this information to help you make insightful and strategic decisions that can benefit your business in the long term. They will advise you appropriately on where your money can be optimally spent and where you can cut costs effectively.
Hiring the right candidate to act as an accountant for your business is not a decision to be taken lightly. And these days, the average salary of an experienced in-house accountant goes up to around $55,000 per year. An accounting outsourcing service comparatively costs a lot less and results in considerable savings. Moreover, investing your savings back into your business can bring additional profits and benefits.
Recently, business scams and fraud have seen a meteoric rise. It is easy to fall prey if you are not continuously watchful and follow preventive policies and procedures. However, when you outsource your F&A, it becomes the responsibility of your service provider. That’s another thing off your plate, and you can have complete assurance that your finances are being managed safely and securely and that you are not leaving any loose ends in your financial security.
Accountants have in-depth knowledge of the technical nuances and are familiar with all the tax codes relevant to the type of business you have. Also, they take the time to understand new tax laws that they can use to maximize your profits after tax. Outsourcing the responsibility also means that you are not stressed due to impending tax filing deadlines. As a result, you have more time to concentrate on and grow your business and make sure that every single one of your customers is satisfied with your services.
One of the worst things you can do for your business is delaying the majority of your accounting to be carried out during the year-end tax season. This way, you’re allowing your finances to be grossly mismanaged during the other eleven months of your financial year. We understand it’s hard to keep up with it if you are doing it yourself, it’s time-consuming, and there is always more urgent stuff that needs doing. Which is why it is so much more beneficial to outsource it to highly trained and professional accountants who will be recording your day-to-day financials and keeping your books updated and not lagging behind many months.
One of the valuable benefits of accounting outsourcing is that you are only provided with accountants who are experts in their line of work. These professionals are trained to make use of only the most effective and efficient accounting practices best suited for your industry vertical. They will devote time towards studying recent researches and emerging technologies and will adapt these methodologies to your business accounting to bring improve efficiency and integrity of your financial data and improve your access & visibility of it.
Humans are prone to mishaps and slip-ups. If you get your accounting done in-house, you may find yourself spending countless hours firefighting errors or procedural mistakes. By outsourcing your accounting, you will also be outsourcing the stress and hassle of ensuring accuracy and data integrity. You will not have to worry about continually backing up your financial data in fear of any unexpected network server crashes, as your outsourced accountant will be taking care of that as well.
Outsourcing accounting is an excellent opportunity for businesses who want continuous growth in their scale and productivity without being thwarted by numerous financial hassles. The outsourced service you choose will ultimately augment your accounting processes and transform your workplace into a productive network. At the end of the day, it’s not just about maintaining your accounting but also about establishing a reliable framework to ramp up profits, improve cash flow and grow / expand your business.
Farwah is the Product Owner of Monily. She has an MBA from Alliance Manchester Business School, UK. She is passionate about helping businesses overcome challenges that hamper their growth, which is why she is working at Monily to facilitate entrepreneurs to efficiently manage business finances and stay focused on growth.