September 01, 2021
Outsourcing financial service is the process of giving finance and accounting work within an organization to a specialized third party. Finance & accounting are crucial to the progress and survival of the business. All industries have to do some finance and accounting functions that are not directly related to the revenue generation process.
As a business owner, your time should be provided to the things which are better for your business. But at the same time, you can’t let the books suffer as it is also equally important.
Effective management of income & expenses are important for success of any businesses. So having a competent team will help in growth of the business. Many businesses are going for outsourcing finance and accounting services to an offshore accounting company. This will support their team to concentrate on their key activities.
Possibly you will find that the cost of hiring accounting, bookkeeping and payroll outsourcing company can be a proven investment in the long run. Here are the reasons why most businesses have switched over to finance and accounts outsourcing.
1. Time Saving:
It is a commonly agreed saying that time once lost cannot be found or even bought again. Accounting and bookkeeping tasks are tedious and involve a lot of time. By outsourcing accounting, you can save a lot of time.
In small-scale organizations, the employees are usually overloaded with work, so by outsourcing the accounting tasks, their duties can be reduced and they can focus on activities which are more fruitful for the business.
2. More Peace of Mind:
When you outsource accounting services, you need not to worry about the entire new employee process of onboarding, training and recruitment costs. This is what makes outsourcing a charm as you have trained and competent professionals at your service. You need not worry about meeting deadlines or what documents to keep and what not to. The outsourcing company will keep you up to date with the legislation.
Also, an in-house employee may not be in-tune with changes, new schemes or variable aspects as that person only will deal with your firm’s accounts which of course will not be the case with a professional firm.
3. Latest Software Access:
For in-house accounting staff you have to buy accounting software like QuickBooks, Digita, Taxcalc, IRIS, SAP, BRIGHTPAY, etc. This is an additional cost that you would have to bear and also have to deal with the upgrade. The software cost is very high and can be saved by outsourcing accounting work. The accounts outsourcing company have access to all the latest software you require.
4. Your Dream Team:
The third-party accounting firms use the services of expert staff for doing finance and accounting tasks for their clients. All this without needing to hire the qualified and experienced staff and pay them on a fixed basis. Thus, you get the team that you always wanted but without paying an arm and a leg.
5. Accurate Services:
If you hire an employee to assist with accounts and other related activities, you are forced to keep a check regularly on progress and accuracy of the work. Outsourced firms are known for accurately performing tasks. Outsourced accounting firms create accurate financial statements such as balance sheets and the income and expenditure statement. They also help in submitting your records to HMRC on time so you will be saved from penalty.
By checking on the above points a business owner will be able to understand the importance of finance & accounts outsourcing. But if you have any question, feel free to Call Us or Email us. The final decision of using them or not remains yours.