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When Is The “Right Time” To Outsource? 

Being a sole proprietor is a unique opportunity. You get to start your own company, establish a brand, and do everything yourself. But unfortunately, many solopreneurs choose to maintain it because they believe that adding more team members would cause complications. To outsource is a game-changing business choice.

You can’ throw a coin or select flower petals to reach a decision! It must be a strategic approach. It would help determine whether it is the right moment to outsource. Also, whether your company is prepared to do so.

Many companies have had success with outsourcing. But, the number of companies that have failed is also not insignificant. It happens because they are unsure when to outsource and whether outsourcing is the best option. Thus, the dilemma is whether to outsource or not.

So, before leaping to any conclusions about outsourcing, here is what you should ask yourself or your team.

“Is today the ideal moment to outsource?” may be one of your first queries. It is possible that you’ve been trying to scale a team for a long but haven’t been successful. Alternatively, your back-office administrative responsibilities may be putting a strain on your in-house staff. Outsourcing your non-core operations helps free up time and money for developing your company. Business executives are under pressure to balance cost and potential growth. This necessitates fulfilling rising client demands while providing the greatest goods and improving core capabilities.

Several vital signs can help determine whether outsourcing is the best answer for your problems. It all starts with evaluating the advantages of outsourcing and keeping internal departments. The idea is to figure out exactly “how” and “why” BPO will benefit your company.

So, when should you take the plunge? Here are a few typical symptoms that show that it may be time to outsource.

When should you start To Outsource?

1. You don’t have time for high-value projects.

You don't have time for high-value projects

If you are confronted with several low-value, tedious chores that take up too much of your time, then hiring someone to execute them is advisable. Outsourcing allows you to focus on more critical issues that have a broader influence on your business. It helps you increase your productivity. As a business owner, you must concentrate on various areas to enhance your firm. You can delegate minor and time-consuming work to independent contractors. Thus, you can hire them on a project-by-project basis at a lesser cost.

2. You want to save money

You want to save money

One of the most well-known advantages of outsourcing is cost reduction. Outsourcing firms allow you to use expert services as needed. Thus, allowing you to pay for the time you spend working and what you can afford. You can imagine how much money you’ll save if you don’t hire a full-time employee. Now, you can put this money back into your firm and get closer to your objectives.

Consider the field of accounting. Many CFOs discover that too much money is being spent on back-office chores. But these back-office requirements are critical to the organisation’s performance. In many circumstances, the accounting staff in charge is already stretched to its limits. Outsourcing is the natural next step when demand for higher output meets a need to reduce expenses.

3. Keeping up with client expectations for service is proving difficult.

Keeping up with client expe

Is it difficult for your organisation to invest in and stay current with customer service technology? Do your consumers expect help 24×7? Customers nowadays have high expectations of businesses. They want agents to be specialists and problem solvers who can handle their issues on the first call. If you discover that your staff is overworked by fulfilling demands for excellent customer service, it may be time to outsource. Many outsourcing firms feature technologies, such as cloud computing, robotics, and automation. It allows agents to give personalised and efficient support to your consumers.

4. Your company is expanding.

Growth is a necessary component of expansion. If your business is expanding and you’ve reached your capacity limit, you will need more help managing and improving your performance and production rate. thus, the greatest approach to keep going forward is outsourcing it to an expert in that sector.

Outsourcing firms function as collaborative partners who give operational flexibility. They provide you with a competitive advantage by optimising company operations, maintaining consistency across several locations, expanding into new foreign markets, and scaling up and down more efficiently. This allows your organisation to stay flexible and adaptable. It also helps maintain a strong emphasis on critical capabilities and excellent customer service.

Conclusion

Although most businesses consider outsourcing at some point, deciding whether to outsource and which services to outsource takes careful

consideration. The decision to outsource or not comes down to a comprehensive assessment of your company’s needs. Whether you require virtual support for a few hours or a few months, professional outsource providers can help.

Working with a BPO solutions provider is a perfect strategy to help your organisation obtain a competitive edge. Every company’s ideal moment is different. But, if you’re experiencing the above signs, that appropriate time may be right now. The next stage is to determine which functions to outsource and then create a business case.

How Outsourcing a Bookkeeper Can Help Your Business

Bookkeeping is a crucial chore that is essential to all types of businesses. Businesses have unique requirements and problems. Bookkeeping in a business needs more than just profit and loss statements, general ledger entries, and bank reconciliations. You’ll also have to deal with delicate scenarios like international sales and merchant fees.

Having your bookkeeping services might strain your company, especially if it is just getting started. But don’t be concerned; there is a way out!

Outsourcing a bookkeeper would be the most acceptable option. Rather than hiring a costly bookkeeper, you outsource the entire function to a firm that specialises in this. Not only will you have more time to focus on and build your core line of business, but you will also be able to receive these services at a low cost. That too with reliable quality.

Definition of bookkeeping

Bookkeeping is the practice of maintaining financial records for your company. This comprises your spending, revenue, debt, and other financial obligations.

Your bookkeeper then analyses these figures and provides you with information about your overall financial situation. Your bookkeeper can help keep track of your employee costs, bad debts, and annual tax filings. All of these responsibilities come under the category of bookkeeping.

Importance of outsourcing bookkeeper

You already have enough to deal with as a business owner. You’ll need assistance if bank account reconciliation and month-end cash flow reports start to get in the way.

There are various advantages to outsourcing your business’s bookkeeping rather than recruiting in-house professionals. You can not only save money, but you can also have access to an entire team of sophisticated financial specialists rather than depending on a single individual to handle everything.

Benefits of outsourcing a bookkeeper

Here are a few reasons for outsourcing a bookkeeper for your business.

1. Reduce Accounting Expenses

Hiring a trained bookkeeper will necessitate paying their fees, salary, incentives, and other expenses. It is preferable to outsource bookkeeping services.

You’ll save money on payroll. You can engage a contract bookkeeper. Thus, she will only work as many hours as you require and can afford. You won’t throw your firm in the red by hiring a full-time employee who you don’t know what to do with all of the time.

2. Allow Yourself with some Leisure Time

When you can trust skilled service providers with your bookkeeping, you can be confident that your books will be completed precisely and that too on schedule. You can scout any other computations without needing to be concerned. Bookkeeping services offer a wide range of financial professionals on staff. This allows them to complete your task and deal with any problems quickly. This gives you extra time. Thus, you can use this to take on new jobs or finish other work!

3. Concentrate on your Core Business Plan

Managing accounts and keeping track of funds is a difficult challenge to solve. Having a bookkeeper for your business allows you to concentrate on your growth plan. They maintain track of the minor things and enter them into the accounting software.

4. Expert Assistance

When you choose to outsource your bookkeeping to a professional firm, you can rest confident that all of your books will be kept up to date. These professionals make their living by reviewing and assessing your accounts. So, you can be confident that it will be as accurate as possible.

Hundreds of professionals are available through a bookkeeping service. They can always put you in touch with someone familiar with the business industry.

5. Unbiased Guidance and Quicker Decision Making

Bookkeepers are the best people to walk you through your balance sheet, cash flow statement, and income statement. They also explain what they mean.

You may make more informed and faster company decisions with adequate professional help from a bookkeeper. This is because all financial facts and insights will be correctly provided.

6. Financial Data Control and Tax Reduction

With the right accounting software in place, a bookkeeper works with the data in the program to manage your company’s finances.

A bookkeeper can also help you figure out what costs are tax-deductible. You’ll be able to see where you may save money. It also helps lower your tax bill this way.

The day-to-day management and recording of bank transactions is the bread and butter of a professional bookkeeper. Your bookkeeper can integrate your bank statement into accounting software to monitor cash flow. Thus, saving time on manual data entry.

Conclusion

These outsourced bookkeepers will effectively handle your business and provide you with sensible advice and ideas. Thus, helping you improve your financial situation. With one less headache, you can finally concentrate on growing your company.

It is something you should think about. Because, after all, this method offers a lot of advantages, especially for entrepreneurs and small enterprises. So, are you ready to delegate your bookkeeping and put an end to your financial woes? Because these bookkeeping firms are prepared to take on your responsibilities immediately!

Outsource Bookkeeping – 3 Ways To Motivate Your Team Towards It

Change is indeed inevitable. When your firm grows, its number of activities increases. This translates to an increase in the cost of doing those activities too. Due to this, hiring a professional in-house can take a lot of your funds, so it’s better if you outsource those functions to an outsource bookkeeping agency. By doing so, you get the same level of experience and eligibility but at a much lower cost.  

The absolute first issue that any business is probably going to face while choosing to outsource bookkeeping is the lack of support from staff. When you choose to outsource, it puts your staff thinking about their future and professional stability in your firm. For fruitful outsourcing, you need to take forward your workers with you.

In this blog, we’ll talk about the ways to limit the resistance from your staff members and make them aware of the new opportunities that will accompany outsourcing.

Tell them about the “vision” & “mission” of your firm 

Your workers need to firmly line up with your organization’s objective. For this, the directors should tell everybody about the “vision” & “mission” and urge workers to follow them. They should likewise communicate about the hurdles that non-core business activities like – offshore accounting & bookkeeping brings to the firm. It will prompt keep them in line. It assists you with operating your business all the more adequately and proficiently.

Initiate training and teach them about new opportunities & outsource bookkeeping 

Give training regarding new functions and educate them about career growth they’ll see once free-up from their tedious bookkeeping work. It is a great idea to include staff in new activities and systems. 

Employers should conduct meetings and teach workers about new business opportunities and how they can help in growth. It will improve their efficiency and assists employees with getting a handle on the new processes expected through outsourcing. It enhances future performance and helps them to focus on their skills better. 

Open communication – Outsource bookkeeping

You must have non-stop communication with your staff through different channels. You can send them an email, call them, or send an instant message reckoning the need to outsource. It removes errors and urges them to talk about their opinions. This activity assists with creating trust among staff and managers. It will likewise make your staff comprehend the requirement for change in current processes. 

Highlight the Positives 

Underline the advantages that outsourcing will bring. For example, reducing tedious work, a chance to zero in on core tasks and having a professional who is there to assist them. They can free themselves from constant updates from ATO regarding tax claims and schemes. Moreover, with outsourcing you can save 70% of overhead costs (as per Deloitte research), in that way, you can offer perks and incentives to employees also. 

To sum up!

You can assist your staff with the understanding that outsourcing is nothing to fear about. Furthermore, indeed, can help them better concentrate on duties they were employed to do, decrease their feelings of anxiety and cause them to feel like they are being more useful. Which incidentally, makes the work environment joyful.

Outbooks offers quality bookkeeping services to the accounting firms of Australia. We have a team of experienced and eligible accountants who deliver accurate results before deadlines. Get in touch with us!

Contact us on +61 451320102

Or

info@outbooks.com.au

Accounting Team – 5 Tips To Build A Valuable Team In 2021

Being ambitious in the present business environment indicates developing the way you work and employing talents considering that. Accounting and bookkeeping firms always complain that they can’t find and keep a decent staff. 

While the need for talented bookkeepers is occurring more than ever, the number of acceptable candidates is consistently decreasing. While senior bookkeepers leave after ageing out, others leave on their own. Further, today’s skilled graduates look for careers in different ventures.

The accounting & bookkeeping business is changing rapidly. Further, today’s individuals are seeing this industry as dull, less paid, and ailing in improvement opportunities. 

Today, the majority of impressive candidates attract towards IT companies, the marketing world, and innovative start-ups. On the other hand, the individuals who stay in accounting rely upon to work in a firm for at least 4 years. It is excessively long for some yearning recent college grads except if they’re being prepared for ownership.

Most accounting firms favour somebody with a few years of experience. They need balanced bookkeepers who know tax law. Besides, someone who has an understanding of the value-added services and use numbers to drive the procedure. While misguided education policies have given rise to an excess of bookkeepers in Australia, they have less compliance knowledge and auditing skills.

How can your accounting and bookkeeping firm deal to stay reasonable in a quickly evolving industry? Here’s a quick guide for the same.

Nurture your current geniuses 

Guide your current employees and reward them with regular incentives and development opportunities. Facing problems in offering the compensation of a bigger firm? Don’t worry, get inventive. 

Some inventive ideas include holiday leave, company lunches, gym offers, and office trips. Remember, all these are highly appreciated by employees. Further, work-from-home (WFH) is something every employee would prefer in the post-COVID world. 

Put your resources into what’s to come 

Generate more clerk level jobs and give continuous training. While recruiting somebody with some experience appears simple, it’s likewise costlier. Xero, in its study, found that:

In 20 years, 80% of bookkeeping occupations will get automated.

However, some human interference will still hold significance. 

An enormous amount of information analysis has featured a requirement for client advisory services; assisting them with figuring out what the numbers mean. The government has multiple tax obligations on the corporate world, understanding this employee will be needed. 

Soft skills matter too in accounting 

Indeed, you must check the core accounting skills of the candidate while hiring. However, don’t forget the importance of soft skills. For example, problem-solving, critical thinking, leadership, and risk analysis skills are what an accountant must possess. 

Roles like client advisory and auditing requires more soft skills. Thus, your employees will feel more secure and satisfied if they possess sufficient soft skills. 

Evolve client-accountant relationships

With technological advancements, clients have evolved themselves too. Nowadays, they don’t just rely on your tax lodging and compliance work. They demand more from your firm. They need help in budget analyst forecasting, financial planning, business scaling rather than simple record keeping and payroll handling. 

You must advise your clients related to their needs and solve their queries to develop relationships. Keep their work on priority and engage more with them. 

Outsource time-consuming tasks like accounting 

Take the support of an accomplished outsourcing accounting and bookkeeping services firm. When searching for an outsourcing supplier, pick an agency sufficiently large to take on work immediately. 

Allow one individual, like your office supervisor as a point of contact to guarantee consistency and clearness for your outsourcing group. Additionally, some outsourcing organisations will provide a free trial of their services so you can choose the best one. 

How Outbooks can help? 

Having proficiency in Australian tax laws, budgeting & forecasting, management accounts, and payment management; experts at Outbooks can set up the systems they require to begin within a few hours. Thus, overseeing most parts of the technical handover for your support. 

In case you’ve limited staff and are facing an occasional spike in your responsibility, a 10-minute call is all it takes. 

 

[button link=”https://outbooks.com.au/services/”] Offshore Accounting & Bookkeeping Services in Australia[/button]

Record Keeping: The Only Guide You’d Need In 2021!

Record keeping is quite a complex as well as a tedious practice. Though, it is an important part of every small or large business. You need to invest time and resources in record keeping. When you don’t handle the bookkeeping precisely, it can lead to multiple errors. This includes risk mitigation, future planning obstacles, and fines. 

Record keeping is beneficial for your firm because: 

  1. It helps the company to monitor its development.
  2. Allow the business to meet its compliance deadlines. 
  3. Ensuring better cash flow management. 
  4. Enable them to show their monetary situation to banks or different loan specialists.

What business records you must keep? 

As a bookkeeper, you have to keep records of your company. The types of transaction record you store relies upon the tax responsibilities of your firm and the structure of your firm. That us, whether it is Sole Trading, Partnership, Trust or a company.

As per the guidelines of the Australian Taxation Office: 

  1. The records of firms can never be changed. Plus, they have to be stored in a manner that restrains the data from getting altered or the record maligned. 
  2. The firms are obliged to save most records for 5 years, beginning from when you arranged or acquired the records, or finished the transactions. 
  3. Firms must show the ATO their records whenever they request them. 
  4. The records have to be in English or ready to be effectively changed over to English.

How can a business keep records? 

The ATO always advises the business to store and prepare their record in electronic form. Because of the continuous trends emerging and new policies regarding taxes, keeping records electronically makes processes less complex for businesses. Also, using electronic tools for bookkeeping purposes can save time and money. 

When utilising accounting software for bookkeeping, the ATO doesn’t ask for paper copies unless a specific principle or regulation demands one. 

The ATO also keeps all the copies in its highly-secured and encrypted storage systems. These electronic copies of records are verified and true.

The businesses must make sure that they record everything in a safe place and conduct a timely backup. For these purposes, business owners can leverage cloud-accounting technology. With cloud storage, your employees can access the data anytime and from anywhere. 

For how long, you must keep records? 

As per the ATO, a business must keep records for at least 5 years. Various times you should hold the transaction records for more time because of multiple reasons, like – if your business had a capital gains event. 

You know ATO also offers an app named “myDeductions”. This app makes the recording of income and expense transactions safely in one place. You can also use different accounting software like – XERO and QuickBooks. 

How Outbooks can help? 

Businesses have to shift towards a more advanced record-keeping approach to keep up with emerging trends and government compliance. The Australian Taxation Office frequently introduces different policies to support SMBs. 

When you hand over your accounting and bookkeeping work such as payroll management, tax filing and boring data entry, you can get more time to focus on important client satisfactory tasks. Our expert team will complete all your bookkeeping tasks on time with accuracy and provide you with the best results. 

Have some doubts? Reach out to us here

Bookkeeping Outsourcing – How Does It Work In 2021?

When growing your accounting practice, accurate financial records cannot be understated. Proper financial records give a good impact on businesses, otherwise, the business may collapse. That’s where outsourcing bookkeeping comes into play!

Many firms hire in-house accountants to maintain proper financial records and simultaneously pursue their company goals. But employing in-house accountants cannot be the best answer to the problem. If you are looking for the best accounting services consider outsourcing to an experienced and reputable accounting company.

Bookkeeping outsourcing services can help in saving money. As in house bookkeeping service could be expensive for your practice. You can save on the extra office space, training and hiring professionals. You are sure that your bookkeeping is in the hands of skilled and reliable professionals when you choose to outsource bookkeeping services. 

In addition, outsourcing firms provide financial advice to help you make sound business decisions. We get enough time to focus on other core operations of the practice. If you are an accountant tied with a lot of tasks consider your option to outsource bookkeeping services to a reputable and compatible professional. 

What is Bookkeeping?

Bookkeeping refers to systematically recording and classification of financial data of an organization in an orderly manner. It is a record-keeping function to assist in accounting activities. The most common methods of bookkeeping are a single entry and double-entry system. 

The main objective of bookkeeping is to maintain complete and accurate data of all the financial transactions in a systematic manner. 

What is Outsourced Bookkeeping?

Outsourced bookkeeping is a service that handles day-to-day transactions, accounts payable, accounts receivables, managing financial reporting, payroll, and many other services virtually. Accounting Outsourcing companies have highly skilled professionals who offer experienced teams of experts at a lower cost. 

What are the benefits of bookkeeping outsourcing?

Following are the benefits of bookkeeping outsourcing:

  • Expert advice and knowledge of a qualified bookkeeper:

Whether you hire an in-house professionals team or outsource to an outside firm, the quality of professionals is the top priority. Keeping bookkeeping in-house certainly has its own limitations- could potentially lead to knowledge gaps, which could lead to issues in the long run thus requiring external help. On the contrary, outsourcing firms have experts who are always under training and are closer to evolving technology. 

  • Cost benefits:

For startups, cost becomes a significant factor. Outsourcing bookkeeping services can be cost-effective. There is no hassle of hiring and training a bookkeeper and paying a salary. In-house bookkeeping makes it mandatory to look after all these expenses. But with outsourcing, you only pay for the services that are required by you. 

  • Peace of mind:

As a business owner, it frees up your time and looks for the opportunity to grow. And also allows you to spend time with your family members or doing what you enjoy the most!

  • Latest technology:

When you outsource bookkeeping, you get access to the latest technology along with expertise inputs. The use of cloud technology allows businesses to get access to real-time information anywhere and anytime to make any key business decisions. The use of technology has the added benefit of setting meetings virtually between the client and a bookkeeper. 

  • Financial Reporting:

Financial reporting is distinct for each business and it depends on many factors such as monthly transactions, industry considerations, and much more. Working with an in-house bookkeeping department might be a little problematic as they do not have the right skill set required for a month-end report that is accurate and error-free.
While outsourcing these services can be fruitful, as they help in avoiding late or inaccurate financial reporting. They make the procedures streamlined for businesses. Financial reporting can be accurate and delivered on time with outsourced accounting companies as they have a team of experts and trained professionals. 

  • Internal Control:

This is another important factor to consider when choosing in-house or accounting outsourcing services. When you choose in-house bookkeeping, there are chances of fraudulent activities. Sometimes, there is a discrepancy of records which when comes to notice of the business owner, it’s too late.
When it comes to outsourcing accounting services, there is a division of duties. In outsourcing firms, there are two or more professionals assigned to keep a track record of the accounts and this ensures the records are reviewed and maintained thoroughly without any discrepancies. 

  • Ensure quality work:

Getting the work done timely, doesn’t mean compromising on the quality of work. An outsourcing firm has qualified and trained professionals in its team. They believe in building long-term relationships by delivering the highest quality of work delivered is their primary goal. 

Outsourcing bookkeeping can help you in the following ways:

  • It reduces the risk of fraud
  • It’s the most affordable choice
  • Outsourced accounting services provide a higher quality of work and access to expertise. 
  • It helps save you time and maximize your profits 

How do outsourcing bookkeeping services work?

Bookkeeping can be a tedious and stressful task. This includes accounts payable, accounts receivables, logging expenditures and receipts, and tracking profits and loss.
You can either hire an in-house bookkeeper to perform the task which can be relatively an expensive affair. Or you may outsource bookkeeping services in the hands of the expert who will perform the tasks by telecommuting electronically.
Once you have finalized a reputed outsourced company you wish to outsource to, you must communicate with them online. A dedicated account manager will then deliver your accounting documents and reports to you electronically spending on the specified contract. 

First and foremost, you need to grant access to your client’s financial information such as bank and credit card statements, payroll, tax documents, online bill pay, receipts, and everything related to your business finances.

Next, you need to set mutual expectations such as what you want him to work on every day? What information do you want when the month ends? How often you want to communicate and other such important questions to ensure both of you are on the same page. 

Lastly, communication is key. So you need to communicate your goals and how you want them to process the bookkeeping function. In what form you need financial reporting, what software are they going to use?

Conclusion:

Outsourcing offshore accounting services can be the best-suited option for your practice. It is more efficient and reliable than the in-house department. Some still prefer to have a dedicated in-house bookkeeper who sits and goes through everything on a daily basis. But at the end of the day, it’s your call on how you want to run your practice. 

It is essential to put your focus on growing your practice and attracting new clients, meeting the needs of your clients and maintaining good relationships, and leaving the burden of dealing with your client’s business finances to an outsourced bookkeeping service. 

Accounting Outsourcing Companies – Interesting Facts & Figures

The current pandemic situation has made a shift to working paradigms, automation of processes, and acceleration of digital transformation. A lot of accounting outsourcing companies have adapted to this paperless practice while remotely working from home. This advancement in accounting technologies has made processes more systematic and transparent.

More and more companies are looking for cost-efficient ways to manage certain business processes externally. This gives the rise to accounting outsourcing companies. By outsourcing, businesses can free up their time to focus on the core capacities of the business. Thus, businesses will eventually get benefitted by getting to run their company efficiently. Furthermore, bookkeeping outsourcing is a great source to reduce overhead costs for your business.  

Some facts and figures about accounting outsourcing companies

  • 29% of businesses with 50 or fewer employees are less likely to outsource compared to 66% of businesses with more than 50 employees. 
  • The top challenge faced by small businesses when outsourcing is a lack of cash flow or capital followed by difficulty in marketing and advertising. 
  • Around 78% of businesses are feeling positive about their outsourcing relationships. 
  • The use of advanced technologies to automate tedious business processes.
  • Use of cloud computing software to access secure, real-time information.
  • Acquisition of skill sets to complement existing ones.

Accounting Outsourcing trends

Here are three trends that are shaping the world of outsourcing.

Data security

Accounting practices will be regulated and monitored to ensure adequate protection of clients’ data. Further, the organisations will be required to take quick measures to safeguard against data thefts, hacks, and violations of data privacy. Additionally, data security laws are set to be tightened and organisations should take strict action against sources that breach valuable data.

The main task for most accountants is to prioritise data security while dealing with clients. They will need to take more important steps. This includes becoming Australian privacy Principles Compliant and achieving Cyber Essentials accreditation to preserve and protect clients’ data. They will need to ensure compliance with the Privacy Act 1988. It’s Australia’s principal law to protect the personally identifiable information (PII) of individuals. 

Cloud accounting

Cloud accounting has integrated itself into most of the commonly used accounting practices. It enhances the user experience in the accounting world. Further, it not only encourages mobility and simplifies remote work but also offers a wide range of benefits. To list a few, enhanced security and advanced data recovery options.

The simplicity of use and ready accessibility make it even more attractive for accountants and firms. It will help establish smooth relations with clients by enabling collaborations and promoting transparent operations.

With the help of cloud accounting, there is a significant rise in outsourcing accounting services at a low cost. Therefore, cloud accounting provides an easy way to access financial records in real-time. Besides, it provides bookkeeping services at a cheaper rate.

Compliance work

Automation has replaced a majority of manual processes in the accounting industry. It is a very efficient method.  However, it elevates the need for better compliance mechanisms. Thus, accountants using this new method must ensure that they conform to the regulations prescribed by the Australian Accounting Standards Board (AASB). 

Top reasons for outsourced accounting services

  • More than 50% cut costs
  • 47% solve capacity issues
  • 28% gain access to talent capital 
  • 57% focus on core functions
  • 31% enhance the quality of services
  • 28% answer a critical business need 
  • 17% manage the business environment 
  • 17% expand and speed up organisational transformation 

Choose high-value accounting services

Outsourcing is not just about using an external service provider to complete repetitive, time-intensive duties such as payroll and bookkeeping. The new breed of outsourced accounting services access to more advanced specialist skill sets. This makes practices stand out from the competition and accentuate their core services. 

Businesses and practices choose outsourced bookkeeping services for tons of benefits. But the major benefit is cost-efficiency. 

Benefits Of Outsourcing Accounting and Bookkeeping – Top 10 Benefits For You!

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.

Why so?

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. 

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Outsourcing Payroll Services – Top 8 Reasons To Choose In 2021!

Outsourcing payroll services is a preferred choice amongst many Australian businesses whether big or small due to its following 8 advantages.

According to a report by the Australian Payroll Association –

It is estimated that 24.7% of all Australian businesses and 37.08% of Australian SMEs with less than 200 employees are now operating under an outsourced payroll model.

The biggest advantage of payroll outsourcing is that it maximises ROI, lowers risk, and is immensely easy and quick to implement. 

Symptoms of poor payroll practices

There are typically three major things that contribute to errors in the payroll process.

  • People
  • Technology
  • Processes

Highly skilled payroll professionals are in great demand in Australia. However, they are very hard to retain. Additionally, such professionals are equally hard to attract at the same time. Most payroll processes contain errors because the person processing the payroll function lacks knowledge, required skills, and training. 

Symptoms of poor payroll processes and systems that need improvement

  • There is a significant amount of manual work involved.
  • Managers and Employees complain of errors and delays. 
  • Frequent off-cycle payments are being made to fix errors. 
  • Information is not easily available and reporting doesn’t provide any valuable insights. 

If your payroll resembles any of these above symptoms, it’s time to think about outsourcing your payroll to a third-party provider. 

8 main drivers of outsourced payroll services in Australia

1. Pay compliance 

Australia is a very complex myriad of laws governing employment at both State and Federal levels. They cover:

  • Workers compensation,
  • Superannuation,
  • Taxation (including fringe benefits),
  • Jury duty,
  • Minimum pay rates,
  • Termination of employment,
  • Minimum terms and conditions, 
  • Record keeping,
  • Public holidays,
  • Leave entitlements, and
  • Privacy.

The Fair Work Act is the primary piece of legislation governing employment in Australia, with Modern Awards stipulating a safety net of pay and conditions in different occupations and industries and the enforcement of obligations under the act and Modern awards is with the Fair Work Ombudsman. 

The Fair Work Ombudsman is now targeting directors, franchisors, HR professionals, accountants, and payroll officers to make them potentially liable to prosecution in the event of any contraventions of the Fair Work Act by their franchise or business. To ensure payroll compliance, businesses and franchises now have to prevent damaging compliance arising issues such as workplace advice and provisioning payroll or partnering with payroll service providers. 

Thus, it is best to outsource your payroll to third-party providers so that you get access to specialised expertise to solve pay compliance queries. Further, they will give you the best advice on practice approaches in managing payroll. 

2. Risk management

In addition to managing pay compliance, other risks to manage are errors, fraud, security, and key person loss. Payroll fraud can cost businesses a lot of money. It can rise in several ways such as inflating time or rates, ghosting and redirecting funds. Also, it commonly occurs where there’s a lack of control in places such as when there is more than one person involved in auditing and payroll processing. Small businesses usually do not have resources for both controls. 

To overcome these risks, businesses are partnering with payroll outsourcing firms. 

3. Save time

Payroll is a tedious and complex task. If one person is managing the payroll process, it poses a huge burden on the individual or team who have their hands full. This makes it best to outsource payroll services in the hands of the experts while the team focuses on the core activities of the business. When you outsource payroll services to a third-party provider, you can focus more on other responsibilities that come along in running and growing your business. 

4. Save money

Other than just being the costs of in-house payroll staff, you also have to cover other overhead costs such as financing in-house payroll resources (salaries and on-costs), administrative overheads, ongoing training, and recruitment costs. Businesses can save significant payroll processing costs up to 50% of the costs when they outsource payroll services.  

5. Better utilisation of technology 

Many businesses now outsource technology so that they don’t have to invest in new technology for in-house purposes. This becomes important when that technology doesn’t relate to their core business activities. Cloud-based systems have added the cost of maintaining in-house systems much less. New features in the payroll system now include time and attendance with real-time costing against pay conditions including awards, smart rostering tools, self-service for employers and managers. 

6. Focus on your core business 

Instead of focusing on payroll processing, businesses can shift their focus on the growth of their business by outsourcing payroll processes. This is because outsourcing payroll providers are experts who handle the payroll function efficiently. 

7. Improves security

Outsourced payroll service providers deal with the latest technology(s) to handle payroll functions. This eliminates the hurdle of security. Hence, to become managing pay compliance, finding a good payroll service provider is the key where your data is secured and there is no loss of theft.

8. Simplifies reporting and reduces redundancy

Payroll outsourcing services offer complete transparency and accurate information at the time of reporting. In addition to this, they also reduce redundancy by improving the efficiency and quality of work delivered. Therefore, outsourcing payroll offers greater benefits and is the most preferred choice compared to the in-house payroll function. 

Outsourcing payroll services to third-party providers will ensure compliance and give you peace of mind at less cost compared to in-house staff. 

Stay connect with Outbooks to outsource your payroll services.