02 Dec Why You Should Think About Outsourcing Accounting
It is increasingly common in the business world to take advantage of third parties and outsource non-core functions. This lets you effectively retain capital, which is increasingly important in these times of economic uncertainty, and also preserve the time of your senior management. Big business has been aware of this potential for years, and they have been taking advantage of outsourcing to improve profits.
• Spend Time More Efficiently – When you begin outsourcing accounting, you will find that senior management has more time to focus on actually generating revenue for your company. Whether that means time spent selling high-level services to your clients, or additional time to negotiate vendor contracts, this extra time will definitely have a large impact on your bottom line.
• Save Costs – If you outsource bookkeeping, payroll, or accounting services, you will save significantly. You aren’t paying salary, or associated costs such as sick leave or vacation time. You also avoid paying for benefits, like health insurance or retirement. It isn’t uncommon for clients to realize 25-50% savings when they outsource their financial department. Given these facts, it is increasingly hard for most businesses to justify in-house financial employees.
• Access to True Expertise – Just like you are an expert in your own industry, and that gives you special knowledge applicable to your own circumstances, outsourcing accounting means you can take advantage of people who are similarly experts, but specifically in finance. This means that reporting will be clean, quick, and accurate, and you will likely not have to pay late fees or penalties.
• Performance Guarantees – Most outsourced accounting firms provide some sort of guarantee that you will not be liable for any financial mistakes they are responsible for. Many go further, and are willing to offer refunds if you are in any way dissatisfied with the service you received.
Taking advantage of qualified financial experts and looking into outsourcing accounting may be one of the best decisions you ever make for your business. You will definitely notice the impact on your bottom line as revenues increase, costs decrease, and functions which used to prove troublesome virtually disappear.