Technological advancements make outsourced accounting services more practical. This article discusses the benefits of switching to outsourced accounting.
LONG BEACH, CA, UNITED STATES, June 8, 2021 /EINPresswire.com/ — Accounting is an essential business function that allows you to keep track of your income, expenditures, and the business’s financial health. Unfortunately, most small and medium-sized businesses lack the resources for hiring a full-time accountant. You need to vet suitable applicants, provide the accountant with a work desk, computer, and other resources, and keep them on the payroll. These factors can rack up the cost of hiring an accountant. Consequently, numerous small and medium-sized businesses are choosing to work remotely with outsourced accounting services.
Technological advancements have made this more doable. Today, companies that cannot afford to hire a full-time accountant can easily outsource bookkeeping and accounting tasks to an accounting firm. This article discusses the benefits of switching to outsourced accounting services.
Four Benefits of Outsourced Accounting Services
Some of the main reasons companies are outsourcing their bookkeeping and accounting include:
1. It is Cost-Effective
Choosing to work remotely with outsourced accounting services allows you to reduce your overhead cost. You do not have to invest in office space or spend time managing an outsourced accountant. You also do not have to pay for their employee health insurance, offer retirement benefits, or provide sick and vacation days. Moreover, you are not liable to offer them workers’ compensation.
Saving on these costs can have a significant impact on your operational expenses. Most outsourced accounting firms charge a fee for their services, which is often cheaper than hiring a full-time professional for the job.
2. You Can Work with Experienced Professionals
Even if you hire an in-house accountant, chances are you will have to settle for someone who does not have the relevant industry experience to add value to your business.
Outsourcing your accounting can resolve this problem and allow you to work with teams that have the necessary expertise to help you streamline the financial management of your business. Companies that offer outsourced accounting services have a team of experts who deal with a wide variety of clients daily. They are well-versed with how different industries work and the type of reports your business will need to monitor its financial health.
For instance, profit-based and nonprofit organizations observe different parameters to measure financial health. An experienced accountant will be able to offer valuable insights in this regard to help you achieve your organizational goals.
3. You Can Ensure Accurate Financial Reporting
The experience and expertise of an outsourced accounting team is also reflected in their work. These teams provide accurate results that you can trust. They work systematically and consistently, and you can rely on the financial statements they prepare. You can also use these reports to make essential financial decisions regarding your business.
4. You Can Focus on Core Business Activities
Most startup owners who lack the resources to hire an in-house accountant try to carry out these functions independently. Outsourcing your accounting needs allows you to focus on your core business activities. You can use this time to develop strategies, streamline operations, and improve efficiency.
It also allows you to manage your business taxes more efficiently by helping you maximize year-end tax deductions and take advantage of tax credits. An experienced accounting firm keeps track of changing tax legislation to ensure compliance.
While it has its benefits, many business owners also have concerns regarding the potential challenges of outsourcing accounting and bookkeeping.
Is it Difficult to Communicate with an Outsourced Accounting Team?
A primary reason why business owners refrain from working remotely with outsourced accounting services is that they cannot engage in face-to-face communication with these off-site teams. It brings up valid concerns regarding the frequency and quality of communication with the outsourced service.
However, as long as you are working with an experienced outsourced service, you will find that this service is usually as responsive as an in-house team.
Advances in communication technologies also make it easier to interact with an outsourced team. You can arrange conference calls and video meetings to speak to them directly. You can also opt for group emailing to ensure everyone remains on the same page.
Besides this, an in-house team usually works a standard 8-hour shift. In comparison, most outsourced services have flexible hours. If you require something urgent, you can reach out to the service and seek help.
Can Fraud be Reduced with Outsourced Accounting?
Hiring reliable individuals for financial management is always a challenge for business owners. Many businesses run the risk of fraud and embezzlement if they entrust these responsibilities to the wrong person. There is also the possibility of data theft with sensitive information getting leaked to third parties and competitors.
An outsourced accounting team can help you tackle these problems. These services can act as fiduciary, and they take great care in ensuring that your financial data remains protected. They store your data on secure cloud-based servers that only the agency and their client can access. If any suspicious activities occur, the server will issue a fraud alert to the parties involved, and they can immediately take action against the perpetrator.
A remote outsourced accounting service offers many advantages. It is usually more cost-effective than hiring an in-house accountant, allowing you to save money in overhead costs. You also get access to a team of professionals with rich industry experience that you can rely on for accurate financial reporting. An outsourced service also has no personal stake in your business and can provide you with unbiased services. These services also take the necessary precautions required to secure your data and prevent potential data theft.
Are you are looking to learn more about using an outsourced CFO? Talk to the team at Windes and find out how we can help work remotely with outsourced accounting services to streamline financial management.