Accounting outsourcing enables business owners to focus on their business. Cost effectiveness and accurate and timely accounting are some benefits of outsourcing. Read on to learn how small and medium businesses can benefit from outsourcing their accounting function.
Importance of Accounting
A robust accounting system is important for all businesses to keep a track of their incomes and expenses, to facilitate strategic decisions by the management, to provide investors with financial results of the business, and to ensure statutory compliance.
Decisions that can make or break any business, such as determining the pricing policy and preparing financial projections, are based on accounting of financial transactions. Therefore, the importance of good accounting cannot be undermined.
Our team at Alphasure understands the importance of accounting and can also help you transition seamlessly in the world of cloud accounting.
Challenges of In-house Accounting
Your first challenge would be hiring an accountant or a team of accountants who will work along with you in your business premises. SMEs, especially startups, may find it difficult to hire a team of in-house accountants considering the costs involved.
Further, hiring a single accountant is risky, as it involves absolute reliance on one person. Business owners may not always be aware whether the accounts are maintained correctly or not, as they may not have the expertise to evaluate the accountant’s work or they may be unable to devote the necessary time required for a thorough evaluation.
Also, you carry the risk of a single accountant quitting without any notice. You may find it very difficult to find a capable replacement immediately, and there could be downtime as the replacement would need some time to understand and take over the accounting operations.
If business transactions are not recorded correctly, decisions taken on the basis of information generated by the accounting system might not be accurate.
8 Benefits of Accounting Outsourcing
- Business owners and managers are free to focus on expanding their business operations without being bothered about recording the financial transactions
- Compared to hiring an in-house accounting team, accounting outsourcing is cost effective. SMEs can save on paying salaries and providing employment benefits to the in-house accountants.
- Businesses are not required to hire, train, and maintain accounting staff
- Professionals providing outsourcing services have varied experience and are better equipped to establish an effective accounting system
- Businesses no longer bear the risks associated with being reliant on a single accountant
- With accurate and timely accounting, businesses can avoid statutory penalties due to delay in statutory filings. More importantly, critical information is made available to business managers when needed to take strategic decisions that will shape the future of the business
- Outsourcing services help avoid possible fraud by employees within the organization
- Latest accounting softwares are used by professionals providing outsourcing services. They also have well defined processes that minimize errors in accounting
Choosing the Right Outsourcing Partner
Your outsourcing partner has complete access to sensitive and confidential business information; so, you need to ensure that your service provider has robust systems in place to maintain data confidentiality.
Choose an outsourcing partner with a team of qualified professionals and rich experience in handling a diverse portfolio of clients. Outsourcing to a team with well-defined and time-tested processes will ensure seamless and accurate accounting that will ultimately help in the success of your enterprise!
Also Read: 6 Benefits of accounting in the CLOUD