Ceptrum
A lot of companies are using outsourced accounting services to manage their bookkeeping needs. This has a significant impact on businesses. Accounting firms that outsource can concentrate on their main business while reducing unnecessary costs and streamlining procedures. Monitoring in-house accountants can be expensive over time for small and medium-sized businesses. The same benefits that larger businesses require—such as timely and accurate financial reporting, cash flow management, internal control and risk management, data security, and many more can be obtained through outsourcing accounting.
What is Outsourced Accounting?
Outsourcing accounting refers to a business practice where an organization hires a third party typically an accounting firm. By doing this companies can be more focused on their core activities and can generate more revenue. Accounting services can be customized to match the company’s requirements. Outsourced accounting services include financial statement preparation, tax planning, financial analysis and other accounting related services. Companies can avail both basic and advance accounting services by outsourcing accounting services.
Why Do Companies Outsource Bookkeeping?
By outsourcing accounting services small businesses can access a team of professionals and expertise to handle accounting tasks. Some small businesses don’t outsource services because they lack in-house resources and expertise to handle the accounting team. Some companies find that they have more flexibility managing a remote, outsourced team while still enjoying the benefits, such as financial reporting, cash flow management, internal control and risk management.
Advantages of Outsourced Accounting
By Outsourcing accounting you can avail several advantages from reducing risk to strategic financial planning. Some of the top 5 Advantages that companies gain are followed:
1.Enhanced Business efficiency:
Outsourced accounting can increase the efficiency and productivity of business as it frees the business from accounting tasks and make them focus on the core of business that increases the revenue of business. Quick response times from your outsourcing partner helps get your business back on track by utilizing advanced technology.
2. Access to Expert Accountants:
This is also one of the best advantages of outsourcing accounting services that you get access to an expert accountant team without the financial burden of hiring and training them in-house. Look for an outsource team that has expertise you don’t have in-house available. Look for accountants that are expert in using advanced technologies so that you can also get access to advanced tools without the need for an expensive inhouse system. The use of technology automate the routine task, reduce error rate and streamline financial processes.
3. Reduced Overhead Cost:
Outsourcing Accounting services can increase cost-efficiency for businesses based on different factors. Firstly, Outsourcing staff can eliminate the need of hiring an expert or expand an inhouse team negating the need to budget salaries and benefits for additional staff. Staff training cost is also reduced since your outsourced team will already have the skills required for their assigned task. Secondly, an Outsource services team can be easily scalable and flexible to manage. You can also reduce or increase the number of employees you want over the time.
Thirdly, there’s no need to invest in expensive infrastructure or equipment that goes outdated. This gives you the freedom and flexibility to allocate your resources more efficiently according to your organization’s overall business plan.
4. Reduce the Risk of Fraud:
An In-house accounting firm needs a layer of check and balance on the team to reduce the fraud rate. But outsourcing bookkeeping separates the duties of every individual that reduce the fraud rate. Choosing a trustable outsourcing company also reduces the rate of fraud and helps in increasing the growth of the company.
5. Leveled Playing Field:
With all the advantages listed above, this gives all businesses the chance to access the same level of expertise as large enterprises at potentially a fraction of the cost. By working with an experienced technology partner, you’d be able to focus on high-level tasks meant to move your business forward while trusting your team to handle the day-to-day.
Ceptrum has deep expertise in accounting and works with a variety of different businesses of both small and medium sizes. Learn more about how our company advisors can help you achieve your business goals, and the associated fees, by requesting a meeting below.
FAQs
- What services are typically included in outsourced accounting?
Outsourced accounting services can include bookkeeping, payroll processing, financial reporting, tax preparation, and strategic financial planning.
- How do I choose the right outsourced accounting firm for my business?
Consider factors such as the firm’s expertise, reputation, technology use, and ability to provide customized services that meet your specific needs.
- Can outsourced bookkeeping be scaled up or down?
Yes, outsourced bookkeeping services can be easily scaled up or down based on your business needs, allowing flexibility in managing your accounting functions.
- Is outsourced accounting secure?
Reputable outsourced accounting firms use advanced security measures and follow strict compliance standards to protect your financial data.
- What are the cost benefits of outsourced accounting?
Outsourced accounting can significantly reduce costs related to salaries, benefits, training, and infrastructure by eliminating the need for an in-house accounting team.
