Businesses find it challenging to focus on core activities while also managing accounting and bookkeeping services. Due to this, they get diverted from their area of expertise i.e. to increase business profitability and attract new clients. Hence, it takes them a long time to manage their books of accounts. To avoid this, check out the top 10 benefits of outsourcing accounting and bookkeeping.
On the other side, it’s also vital to manage accounting and bookkeeping accurately to make sound business financial decisions. Hence, businesses and practices hire in-house professionals which isn’t the best solution in today’s time.
Outsourcing accounting and bookkeeping services allow you to focus on your core business activities 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. However, it’s more than saving money. The same goes for accounting firms whose core business is more than bookkeeping and other data entry related tasks but focuses on adding value to their client’s business.
While businesses outsource their accounting needs to outsourcing firms & independent CPAs, they, in turn, outsource their repetitive low-yield tasks to firms that can handle these record-keeping tasks.
Well, here’s are the 10 reasons to support this.
Top 10 benefits of outsourcing accounting and bookkeeping
Let’s discuss the top 10 benefits of outsourcing accounting and bookkeeping in detail below.
Accounting outsourcing services help your firm to grow faster, stronger, and sustainably
The major goal of outsourced accounting services is to help you to maximize returns on your core competencies. By outsourcing, you can focus on the core activities of your business to help it grow and sustain. Further, 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.
Thus, outsourcing helps you manage your business more effectively and 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. This helps you get more 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 offshore 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. Thus, you save more money for your firm and increase your profit margin. At the same time, it will also help you to sell more work in a given period.
Outsourcing Accounting helps you to reduce the risks of suddenly losing staff
Small 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 any unknown stress.
But when you outsource bookkeeping and accounting services, you work with a team of experienced professionals. They are more reliable because of their superior teamwork skills. Thus, they will double-check the work done to ensure top quality work gets delivered on time. The main goal of outsourcing firms is to provide accounting services. Plus, they have a much larger team to absorb any 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. Due to this, they feel compelled to review the need of their in-house staff which is like money down the drain. But with outsourcing firms, this is never an issue. Thus, this is another benefit of outsourcing accounting and bookkeeping.
They have a team of experts that takes care of your accounting activities stringent to ensure the quality of work is delivered. Additionally, 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 provide you with knowledgeable CPAs and expert brains known to provide quality 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.
Thus, 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 are tedious and complicated tasks. Thus, outsourcing helps you to increase staffing or cut back quickly depending on your business cycle. It provides you with the flexibility that is difficult to obtain on your own.
You earn more without working more yourself
One of the most important benefits of outsourcing accounting and bookkeeping is that by doing so, 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.