Discover the Benefits of Accounting Outsourcing
Payroll, accounting, human resources, and information technology are some of the most common ‘back office’ functions that your company may want to outsource.
The reasons vary: smaller businesses may be short on staff or wish to free up the management team, whereas larger SMEs may desire access to higher levels of professional expertise without incurring the expense of bringing them in-house.
If you’re thinking about outsourcing your accounting or bookkeeping services, here’s a quick rundown of the advantages to consider.
What exactly is accounting and bookkeeping outsourcing?
To begin, ‘outsourcing’ a role means having it performed by an external supplier rather than one of your employees (or, indeed, yourself). Outsourcing accounting and/or bookkeeping means paying an external accountant or accounting firm to manage your accounts rather than employing an accountant on your own payroll or doing the accounts yourself.
Some companies go a step further and use an accountant or firm based in another country. This can save money, but the trade-off against the benefits of a more local service may not be worth it in the end.
What are the benefits of accounting outsourcing?
Outsourcing your accounting function can provide numerous benefits.
- Saving Time
This is usually the most appealing aspect of outsourcing. If you’re a small team that handles your own bookkeeping, outsourcing the work allows you to focus on growing your business. Furthermore, if you are a larger company, it can save you the time required to hire, train, develop, and manage an internal accounting team.
- Saving Cost
Outsourcing all or part of your accounting function is often less expensive than having a full-fledged in-house department. You save money on employee-related expenses like National Insurance and pension contributions, benefits, and training. You also save money on overhead because you won’t have to provide accounting software, hardware, or office supplies. Furthermore, if you choose to work with an overseas supplier, labor costs and the exchange rate may work in your favor.
- Having access to expert
Accounting firms, by definition, are all about accounting. Why bring this up? Because, as specialists, they can generally provide a far more expert and efficient service than someone whose primary role is not accounting. They bring a wealth of knowledge and practical experience that adds significant value, whether in the time it takes to complete the accounts or in the additional insights they can provide.
Outsourcing also reduces the risk of making a costly financial mistake or hiring the wrong person. It can also provide you with access to top talent that would otherwise be out of reach.
- Improving Operational Efficiency
There are numerous ways that outsourcing accounting can help your company become more efficient and productive. Outsourcing to a larger accounting team provides business continuity benefits because you never have to worry about holiday or sick leave interfering with work.
Furthermore, most accounting firms are up to date on the most recent standards and technologies. While they are happy to follow your process and work as an extension of your team, they can also implement new technology-driven processes to improve your service levels, reduce costs, and boost your competitiveness – allowing you to capitalize on opportunities you might not have had otherwise.
In addition to meeting your standard compliance requirements, good accountants may provide value-added services such as strategic planning assistance.
Where can I find a reputable accounting firm to outsource to?
We go beyond bookkeeping and accounting at JCSN. We provide critical oversight and account management to ensure proper policy, procedure, and system implementation, as well as the accurate production of financial and management reports.
For growing businesses and nonprofits, JCSN offers Outsource Accounting and Bookkeeping Services. JCSN combines advanced QuickBooks accounting system design with a fractional share of a full-service accounting department comprised of a dedicated team of bookkeepers, accountants, and controllers based in San Diego California. Our customized management reporting and key performance indicators (KPIs) assist small businesses and organizations in driving performance and profitability through data-driven decisions.