10 Benefits of Accounting Outsourcing

Outsourcing can benefit your business financially in more ways than one. Having a dedicated team to manage your books and the financial prospects of your business is essential. However, having a full-time in-house financial team on staff can be a bit costly.

Outsourcing accounting services can be just the solution you need as it will not only help save money in the long term but also when it comes to meeting your long-term financial goals as well as day-to-day processes. At least 37% of companies say accounting and financial services are among their top choices when it comes to outsourcing to increase efficiency and decrease costs. But there are more than time and cost savings when it comes to outsourcing finance and accounting services.

Here are 10 benefits of outsourcing accounting that your business can stand to reap the rewards of. But first, what is outsourced accounting?

What Is Outsourced Accounting?

Outsourced accounting refers to any accounting services provided to a business or individuals by a third party, whether an accounting firm or an individual contractor. This includes services like bookkeeping, payroll, financial reporting, audits, and accounts receivable. Whether you hire an accountant or an accounting team will depend on the scope of the task and the size of your organisation. 

10 Benefits of Accounting Outsourcing

1. Financial Savings 

As mentioned previously, accounting outsourcing can save you time and money. Recruitment can become quite costly, especially when you take all factors into consideration, like salary, onboarding, benefits, in-house training, overhead costs, and the list goes on. Not only will you be able to reduce costs, but you'll have access to the highest level of expertise globally at much lower costs than, let's say, local accounting outsourcing services.

2. Specialised Services 

Accounting is a skill that shouldn’t be passed off to someone who merely knows how to use the latest accounting tools. There are specific regulations and processes that need to be followed in accounting. For example, any discrepancies or irregularities will be simple for an experienced and skilled accounting professional to handle.

3. More Time to Focus on Core Tasks 

Another of the benefits of accounting outsourcing is that it can save you a lot of time. Outsourced accounting services give you the much-needed time to focus on the main activities and processes that need to be carried out. Having an expert accounting services provider in charge of your finances leaves you free to devote more valuable resources and time to focus your efforts on ways to grow your business, improve products or services offered, and expand your market presence.

4. Scale Up With Ease

Regardless of your business size, at some point, whether due to market fluctuations or bustling expansion opportunities, you’ll be required to scale up or down. It's a lot easier to scale operations with outsourced accounting services. For example, during busy times of the fiscal year or times of exponential growth, an outsourcing accounting firm will have the needed resources to meet your needs. Similarly, when things slow down, you’ll be able to scale your efforts easily when outsourcing accounting.

5. Latest Innovation and Technology 

Most reliable outsourcing accounting companies will more than likely utilise the latest accounting technology and software. Businesses can gain access to state-of-the-art accounting and financial tools and systems, allowing for real-time reporting without having to invest substantially in setting up a fully operational internal financial department.

6. Improved Efficiency and Productivity 

Outsourcing of accounting services can improve the efficiency and productivity of your internal team. An external accounting team will be able to focus wholeheartedly on the task. This means reduced errors, faster turnaround times, and improved productivity overall.

7. Reduced Risk

Experienced outsourced accounting professionals are well-versed in most financial situations your business may or may not face. At least the reputable ones will be. This is why it’s extremely important to vet your outsourcing professionals when first choosing outsourced accounting services. Ensure your chosen professional comply with financial regulations, accounting standards, and tax laws. This mitigates the risk of mistakes, penalties, and non-compliance problems that could pop up because of improper financial or accounting practices.

8. Security and Confidentiality 

Security and confidentiality rank in the top three benefits of outsourcing accounting processes. When choosing the ideal accounting or financial outsourcing services, the security and confidentiality of a client's financial information or sensitive data should always be prioritised. So, be sure to request existing security protocols put in place when interviewing potential outsourcing accounting professionals. 

9. Customisation and Flexibility

The great part about outsourcing of accounting services is that you can tailor your accounting needs to align with your specific business needs. You’ll be able to pick and choose which financial tasks should be outsourced and which should be taken care of internally. This will help provide more flexibility to customize processes to meet your individual or business needs.

10. Timeliness and Accuracy 

Last but certainly not least when it comes to the various benefits of outsourcing accounting are accuracy and timeliness of financial reporting. In a number crunch, the last thing you want is to lose out due to a misplaced comma in the budget. Having an outsourced professional by your side means you can rest assured knowing that your financials are in order and the numbers add up without losing precious time in the process. 

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