Bookkeeping and accountancy, in spite of being considered as non-core business functions, form an integral part of an organisation’s functioning. Organisations, especially small companies struggle to handle all their bookkeeping, accounts and payroll processes in-house, due to several constraints.
Outsourced accounting and bookkeeping services bring a ray of hope for these companies to help them streamline their business operations.
Here are some of the benefits of outsourcing bookkeeping and accounting services:
1. It provides high level of accuracy
Outsourced service providers in the field of accounting and bookkeeping hire highly knowledgeable and skilled staff. In addition, they have well set processes and procedures for recording, analysing and tracking transactions. This provides a high level of accuracy in your financial reporting.
As many small businesses employ just one overworked bookkeeper, the potential for improved service by outsourcing the work to a third party is incredible.
2. Cost savings
A major benefit associated with any outsourced service is cost saving. It goes the same way for bookkeeping and accounting as well. A huge amount can be saved on operational and infrastructure costs by outsourcing bookkeeping.
3. Check on fraudulent activities
Any possibility of accounting fraud by internal staff can be avoided by outsourcing accounting process to a professional company. The service providers are responsible and accountable for processing of every single transaction as well as the quality and accuracy of financial statements.
4. Saves up on processing time
Accounting and bookkeeping are time consuming processes. Outsourcing frees up a lot of time for more value adding or revenue generating activities for businesses.
5. Gain benefits of up-to-date technology
The market is continuously evolving in terms of accounting and bookkeeping software applications. It gets difficult for companies to cope up with such technological advancements. Outsourced service providers already have subscriptions to latest applications, so their clients need not worry about it.
6. Stay up-to-date with your accounting status
All possible accounting information can be obtained any time from professional service providers handling your accounting services. Advanced software applications provide personalised reports saving a lot of time while making important financial decisions.
7. Enjoy uninterrupted service
Unlike an in-house bookkeeper / accountant, a virtual one is more flexible to match your scheduling. With outsourcing, vacation and sick leaves do not exist. Even if an employee is on leave or sick, your service provider will provide you with additional resources, to keep your business running seamlessly.
8. Provides scalable operations
Small businesses often start out with small bookkeeping work, but as they grow, their needs for bookkeeping and accounting also tend to grow. Hiring an outsourced bookkeeping service provider with a little oversight enables the service to scale as per needs, without having to hire or train additional staff.
9. No hassle of training and management
Most business managers do not have enough time and knowledge to train or manage their bookkeeping staff. Also, having a bookkeeper who is always up-to-date on the latest state tax rules or reporting methods (e.g. GAAP and IFRS) is difficult. With outsourcing, these issues disappear. Your provider takes care of all the training and management on your behalf.
10. Get tax and audit ready financials
With using outsourced professional bookkeeping services, there is no concern or question on the accuracy and integrity of financial data. With such high level of accuracy, the financial statements can be used to present to the bank, answer investor questions or share information with any regulatory authority.
11. Improves focus on your core business
Outsourcing financial functions can free up more resources for a company to concentrate on their core mission. This is especially important to small businesses, who may have more limited resources than larger companies. It’s a task many entrepreneurs find eating up their valuable time.
Outsourcing not only allows entrepreneurs to spend more time on the business which they’re most passionate about, but also allows them to develop more innovative ideas.
Whether you’re a small business or a large organisation, outsourcing accounting and bookkeeping will be really helpful in streamlining your business operations, due to its above-mentioned benefits.
Rahul Sharma Rahul is a content writer at ESG. He has continuously worked in areas of content marketing since last 6 years. He regularly writes about topics on outsourcing and business growth. Rahul has particular interest in the areas of marketing and management. In his spare time, he likes to travel.