5 Advantages of Outsourcing Accounting Work
Accounting is one of the most commonly outsourced tasks globally. It goes along with customer support, IT services, and online marketing. The trend of outsourcing accounting work will go on as the advancement of technology moves forward.
Matthew Grattan mentioned in his article that companies have achieved cost savings of approximately 18% by outsourcing accounting work. However, interestingly only 40% of small businesses have embraced outsourcing – the remaining still use internal resources. Reasons such as confidentiality and security risks are some of the common doubts of small businesses.
Believe it or not, these doubts can become advantages if you choose the right offshore bookkeeping services. Your business can leverage through:
Gaining access to top tools and systems
For small businesses – your focus isn’t just on accounting and bookkeeping , so chances are you haven’t invested in high price tools and systems. As long as financial statements are prepared, the payroll is completed on time, and the taxes are calculated correctly, chances are you’re just getting the job done.
But a bookkeeping service generally has invested in comprehensive high-quality systems and tools to carry out the task more efficiently.
Save time and effort
Time is critical and scarce so business owners want to minimise time spent back office tasks to focus on core business functions. Saving time and effort allows you to:
- assign more administrative tasks
- focus on urgent matters
- work under less pressure
- have fewer workload pressures
- less stress meeting deadlines
Improve cash flow
In return for your outsourcing investment, in addition to the time savings, there are savings in other areas such as lower cost of labour, savings in office rent, technology and infrastructure. This can positively affect your business by:
- allocating more budget for other valuable projects
- invest in other assets to gain more competitive advantage
- expand your business operations, and
- have more resources for innovation
Avoid accounting fraud
Yes, you read it right. Whilst you’re thinking it is a threat to confidentiality and security, it is often the other way around.
There are many accounting fraud stories that have happened internally. Not to mention accounting frauds that affected the economy of a particular country – which is another story to tell.
Have other perspective and options
Doing accounting in-house may become purely routine and you may overlook other possibilities for improvement. Since external accountants are exposed to different types of businesses, they can often extend your horizons on how to improve your cash flow, processes and tax minimisation and save time.
Worrying about the efficiency of outsourcing accounting work? Over the years, BMG Outsourcing has offered accounting services to businesses ranging from small to large ones and here are what they have to say about it.