HERE’S WHY OUTSOURCED ACCOUNTING MIGHT BE GOOD FOR YOU!
Regardless of whether you are a million dollar firm, or a small scale business, it is possible that at one time or the other, you have certainly come across the dilemma on which to choose when it comes to accounting; keep an in-house accountant or outsource it to specialized firms out there.
The decision might be easier once you know the pros of outsourced accounting. It is widely believed that keeping an in-house accountant is always the way to go, simply because they are appointed by you. Although this might be true in some situations, for example, a small single shop might not need to outsource, but a series of chain stores will probably find it more profitable to do so.
So given below are a range of advantages the firms are entitled to, when they outsource:
1. A NUMBER OF COSTS CAN BE AVOIDED
Hiring an in-house accountant, could result in a number of additional costs such as bonuses, office space, insurance and so on, that you need not worry about when outsourcing to an accounting firm. This means that the extra hassle taken to employ and manage additional employees could be avoided, and increase profits at the same time
2. NO MORE CLIENTS ON STAND-BY
Situations may arise where there is a list of clients who cannot be serviced as the accounts department might not be able to handle the excess work load. Outsourcing would help ensure that firms wouldn’t be robbed of clients.
3. LESS LIKELIHOOD FOR FRAUD
When it comes to outsourcing, it would be rare for accounting frauds to happen. Outsourcing firms are highly regulated by legal authorities, which means that there is too less of a room for fraud.
4. HELPS BOOST BUSINESS PRODUCTIVITY
Outsourcing accounting services helps boost productivity of the business. According to a study, outsourcing accounting services can result in a boost in business productivity by 32%. This combined with the increased profits, brings significant progress.
5. ADVISORY SERVICES
Employees that have been working with the same firm would only have knowledge of that firm. Outsourcing would provide access to a team of qualified professionals with experience in dealing with a variety of businesses and scenarios. Hence, they can provide solutions to business problems that employees might not be able to.
6. ACCESS TO LATEST TECHNOLOGY
Firms specialized in accounting would have the latest technologies and information. Businesses that choose to outsource can have access to this information without having to incur the cost of acquiring them.
To sum up, although outsourced accounting is the new black that all firms want to get their hands on, there is still significant skepticism when it comes to the idea of handing over one of the crucial aspects of a firm to a complete stranger. However, as proved by the above mentioned points, it can be the best decision for a firm and need to be seriously considered to be a feasible option.