Businesses find it challenging to focus on core activities while also managing accounting and bookkeeping services. Businesses do not start their business to do bookkeeping or accounting, their area of expertise is to increase business profitability and attract new clients, so it may take a long time for them to manage their books of accounts. It is also vital to manage accounting and bookkeeping accurately to make sound business financial decisions. Hence, businesses and practices hire in-house professionals, which may not be the best solution.
Outsourcing accounting and bookkeeping services, allows you to better focus on the core activities of your business while leaving your books of accounts in the hands of expert professionals. Most businesses think that outsourcing accounting and bookkeeping services are only to save cost, but it is more than saving money. The same goes for Accounting firms whose core business isn’t limited to bookkeeping and other data entry related tasks but focuses on adding value to their client’s business.
While businesses outsource their Accounting needs to Accounting firms & independent CPAs, they, in turn, outsource their repetitive low-yield tasks to Accounting firms that can handle these record-keeping tasks.
Well, here’s are a few reasons:
Top 10 benefits of outsourced Accounting and Bookkeeping services
Accounting outsourcing services help your firm to grow faster and stronger, sustainably:
The major goal of outsourced accounting services is to help you to maximize returns on your core competencies. By outsourcing, you are relieved to focus on the core activities of your business, that will help you to grow and sustain. You can focus more on marketing activities to attract more clients to your firm rather than managing a tiresome cycle of hiring, training, reviewing, managing and firing, and so on and so forth. By outsourcing, you can manage to save 50% of costs for your firm in the short and long run.
You don’t lose projects and new clients:
When you outsource accounting and bookkeeping services, you have access to expertise and skilled professionals, so your service capability is not limited to the time you have. Instead, you can get more time work done without having to pay any extra penny. Hence, you don’t have to lose new projects or new clients just because you’re too busy handling accounting services.
You cut overhead costs by paying only for actual work done:
Outsourcing firms offer services based on your requirement. When you outsource accounting and bookkeeping services, you only have to pay for what you have asked. This means you don’t have to pay for payroll taxes, overhead costs, vacation, sick leaves, training, etc. This will help you to save more money for your firm, increase profit margin, and at the same time, it will also help you to sell more work in a given time period.
Outsourcing Accounting helps you to reduce the risks of suddenly losing staff:
Smalls and medium firms cannot afford to keep “buffer staff” to take care of events where you might suddenly lose staff members. If you are like most practice owners, you must have experienced the pain of losing staff all of a sudden. It can be because of longer work hours or stress that leads to losing staff.
But when you outsource bookkeeping and accounting services, you work with a team of experienced professionals that is more reliable because of teamwork. The team of expert professionals, double-check the work done to ensure the quality of work is delivered on time. The main goal of outsourcing firms is to provide accounting services, hence they have a much larger team to absorb any such incident of losing staff suddenly without affecting service delivery.
You improve productivity and work quality:
Many CPAs and accounting firms get frustrated with consistent errors, mistakes, and delays and review the needs of their in-house staff which is like money down the drain. But with outsourcing firms, this is never an issue. They have a team of experts and experienced team which takes care of your accounting activities stringent to ensure the quality of work is delivered. They also ensure you pay for reasonable productivity thus increasing your profit margin.
You can give your clients a better quality service:
Outsourcing companies provide huge competitive advantages for you. They are equipped with knowledgeable CPAs and expert brains who provide quality of service. Their staff is trained for multiple services. When you outsource, you have the best brains of CPAs that give your clients better quality service.
Outsourcing Accounting empowers you to introduce new services to your clients:
Even when you do not provide certain services due to a lack of skilled professionals or inclination to provide new services, outsourcing can help you to introduce new services for your clients. As outsourcing firms are well equipped with the latest technology and skilled staff, they offer a range of services. You can get leverage to your revenue source by providing services you always wanted to introduce. Many tax preparers or accounting services take the help of outsourced accounting and bookkeeping services to provide a full accounting package to their clients.
You can adjust easily to your business cycle:
Accounting and bookkeeping can be a tedious and complicated task most of the time. Outsourcing helps you to increase staffing or cut back quickly depending on your business cycle. It provides you flexibility which is difficult to obtain on your own.
You earn more without working more yourself:
The bottom line is when you outsource bookkeeping and accounting services, you earn more money without having to work yourself. First, you save money by not having to pay for full time or part-time wages and benefits to employees and the overhead. You also save money on lost productivity costs when your employees are on payroll. Your work gets done on time and you get access to expertise. It gives you the work-life balance that you have also dreamt of and also provides you peace of mind.
You increase your firm’s valuation due to higher profitability:
When you outsource your accounting and bookkeeping services, you get access to experts who deliver quality work on time. This way you have a win-win situation where your clients are extremely happy thus increasing your profitability.
Nearly, 90% of the firms and practices choose to outsource their bookkeeping and accounting services. Outsourcing bookkeeping and accounting services help you to increase your profitability, reliability and also ensure accuracy while enabling you to get back to things that will help you to grow.