Outsourcing used to be seen as a specialized service that only the large organizations indulged in. The freedom to focus on more important tasks was seen as a luxury that the smaller companies chose to refrain from. As the advantages of outsourcing become more obvious, companies of all kinds began to participate in it in some shape or form. It has now become apparent; One of the best ways to run an organization is to outsource any function of the business that is not directly related to the generation of income.
Today outsourcing accounting, Bookkeeping, and Controller jobs have become among the most common business moves of the industry. Though the benefits of an outsourced accounts department seem like an obvious guess, there are finer details that can help an organization prepare for the best setup possible. This starts with knowing when to outsource:
- Your back-office functions are leaving you less time for your core tasks
- You are willing to hire if you have to but have space constraints
- Your resources are to be tabled for much more important concerns
- You want your accounts to be handled more professionally but cannot afford to hire a department
- You wish for both the flexibility of getting your financial information on demand and the peace of mind that comes from knowing it is in capable hands
In essence, you are required to make a change the moment a non-core function hinders your core functions. So for those ready to outsource, here are the benefits you can expect:
Reduced Operational Costs
The Accounts department is an expensive team to hire/setup and running them would mean consistently shaving off a portion of the operational costs off to them. This may not be the best move for the majority of businesses that aren’t making that much overhead yet. Once outsourced, this is no longer your concern. You will now be getting work done and paying a fee for it.
Service Costs are often only a portion of the fee structure. True professionals are transparent with the range of pricing and subscription options. Make sure to check for hidden/add-on costs and get the full picture on the fees payable.
Your daily meetings will no longer include bookkeeping and ledgers. All that and more are being taken care of while your immediate employees and those around work towards the core objectives. Your year-end has lessened significantly, and there is a much lower chance of you dealing with tax penalties due to delays, incomplete documents, etc.
The accounts team runs parallely and is proactively informative of matters that require your notice.
You can often tell by the signing up procedure of an outsource service provider if they can indeed match your levels of efficiency. Be wary of speed and communications as it will help you choose the team that best suits you.
There is no longer a single person or an insider at the helm of the department. Fresh pairs of expert eyes look into every financial matter and spot anomalies that might have slipped past an in-house team. Unintentional errors too are more likely to be spotted by someone reviewing with a fresh perspective. A good point of contact can be an invaluable asset in such instances where corrective actions need to be taken quickly.
Ensure the team you choose knows the importance of transparency. This will ensure swift communication channels and quick resolutions.
You have no need to invest in developing the skills of an in-house department. A team of industry standard professionals whose core task includes being updated with the latest industry news is handling the accounts for you. They are adept at spotting nuances and are sharp to notice red-flags; even when they haven’t occurred yet. Almost every task is available under full scoped outsourcing; be it cash flow management, financial statement preparation, payroll processing or tax filings.
Having access to expert opinion can be a very decisive edge over the competition.
Accounting Outsourcing continues to be a key practice among those who intend to focus on business growth. It’s like that saying when someone needs to get the job done effectively: “Leave it to the experts.”