Outsourcing has become a common practice and businesses these days. Companies prefer to outsource the work requirements rather than investing capital in building in-house teams. Besides, accounting and finance are the most frequently outsourced functions among all. In this article, we are presenting the six most important reasons to outsource accounting tasks.
But, before we move on to exploring the reasons, let’s clear the basics.
What is Outsourced Accounting?
When you hire a third-party firm to execute routine accounting tasks, the process is called outsourced accounting. Outsourced accounting services providers follow a standardized process to accomplish accounting and finance tasks for your business. The accountant or financial team works remotely. But, if you require, thay may visit your office when needed.
The most obvious benefit to outsourced accounting is the opportunity to hire someone with expert skills and experience without the expense of hiring someone with equal expertise in-house.
#1 Reduced Expenses
With outsourced accounting, organizations pay only for the work needed as opposed to hiring a full-time in-house employee. This typically means the outsourced accountant’s annual cost will be significantly less costly than the salary of an equally-experienced in-house accountant.
Outsourcing accounting operations also circumvent expensive employment costs such as payroll taxes, employee benefits, infrastructure costs, including computer equipment, furniture, office space, etc. When opting for outsourced accounting tasks, you just need to focus on what to outsource; the outsourcing service provider will efficiently manage the rest.
#2 Skilled and Experienced Team
Saving costs is often a driver for outsourcing; another is gaining access to more excellent skill and experience at the same expense. Most outsourced financial specialists are proficient and bring specialized expertise developed by managing a portfolio of clients. This type of knowledge can be costly on a full-time basis. But, when you outsource, it becomes accessible and reasonably-priced.
Outsourced accounting and financial management enable organizations to design a team to achieve business aims strategically. When SMBs (small to midsize businesses) keep their financial management and accounting in-house, they generally have to combine multiple part-time positions into a single role to maximize an individual’s wages.
However, with outsourcing, they can hire experts with the same budget. If a company can employ expert accountants, why would they opt for a novice? Plus, it also allows for the acquisition of individuals specialized in areas of expertise specifically pertaining to the organization’s overall goals.
#3 Scalable, Flexible Option
The terminal goal of most organizations is to empower business growth. Whether that involves alliances and acquisitions, introducing new products, or improving sales, an expert financial team assures the growth goes placidly.
Outsourcing accounting and financial management mean many finances and accounting specialists are already in the interests, ready to work for finance operations smartly and strategically. Further, with outsourced accounting, you can easily increase or decrease resources as per the requirements.
#4 Standardized Processes
Explaining and standardizing finance and accounting processes are crucial for well-run companies. With the standardized procedures, businesses can decrease the cycle it takes to close books. Also, they can develop a better benchmark and baseline financial processes to satisfy regulatory requirements.
Outsourced accountants, bookkeepers, controllers, or CFOs have a wide range of experience organizing existing books and processes in a more smooth, standardized function. This type of practice makes closing and reporting processes more agile and effective. Moreover, it also means you have valuable information when you need it to make critical business decisions.
The companies prefer to outsource accounting tasks with a vision in mind to focus on core business operations. And, the standard process allows them to stay focused at the core of their business operations.
#5 Seamless Turnover
Since outsourced accounting services providers usually have multiple expert resources, the transition is smooth if an accountant leaves the job. When the books are regulated, and the outsourced accounting firm already manages the systematic actions, there is little or no further collaboration required from an organization to facilitate a transfer to another accountant within the firm. The outsourced accounting firm also intends the change instead of a company exploring and interviewing applicants then giving training once a candidate has been chosen.
#6 Data Security and Fraud Prevention
Data security is one of the crucial elements to take into considerations while working on accounting tasks. In general, outsourced accounting and finance management allows small businesses to access the data’s optimal security. The service provider strictly adheres to the regulated protocols and prevents your data from any fraudulent activities. Hence, you do not have to worry about or spend time and cost in maintaining data security.
At FinAcc Global, we ensure robust, reliable security measures while dealing with our clients’ accounting and finance tasks.
Well, if you can hand over the burdensome tasks to the other firm along with the other benefits, why wouldn’t you do it. Outsourced accounting services bring in many advantages such as skilled resources with reduced costs, standardized processes with optimal data security, flexibility, scalability, and seamless turnovers. Currently, not only small businesses but also medium to large size businesses also prefer to outsource accounting and finance services so that they can focus on core business operations.
Are you looking for accounting outsourcing services?
FinAcc Global offers outsourced accounting services with standardized processes from industry experts. Whether you need assistance with finance management or outsource complete accounting tasks, we can work for you. Our accountants are industry specialists with years of experience; hence, we can deliver you the most accurate and precise accounting work that will help you in your business’s decision-making process. Get in touch with us to know more about how FinAcc Global offers outsourced accounting services to all companies.