Businesses big and small can benefit from outsourcing their bookkeeping and accounting roles. Outsourcing can help free up internal resources and let you focus on your core business. The benefits are probably most clear for small and medium sized businesses. If you are a small-to-medium sized business, here’s our top 4 reasons to outsource your bookkeeping and accounting functions.
Reason 1: Cost saving
Often, small-to-medium sized businesses have fewer activities and transactions. This means that they do not have the volumes of work that need a full time accountant. In such cases, having a full time accountant would result in the person sitting idle for a lot of their time. This is an ineffective strategy for employment and would cost the business. By outsourcing the role, a business can get the same services but only pay for the time they use, and never for the idle time. Until the business grows and needs a full 40+ hours of work time per week from an accountant, an outsourced role will always be cheaper.Reason 2: Better work quality
While it may be tempting to learn the intricacies of accounts and doing it yourself, the question one has to ask is: is it worth your time? And will the inevitable errors during the learning curve be worth it? This approach though is not sustainable. Putting the bookkeeping and accounting functions into the hands of professionals will make your job easier. It will also mean better quality results and better compliance to statutory needs. Professionals with experience are able to navigate complex accounting and legal requirements effortlessly. They often perform these tasks day-in and day-out with precision and care.Reason 3: You can focus on your business
Trying to do everything in a business is often seen as an essential by many. The allure of saving money by wearing many hats is often very tempting for business owners. But, we all know that running a business is hard work. There’s marketing to do, sales to oversee, operations to track and a lot more. Managing financial accounts and legal compliance at the same time can take time away from other critical tasks. By outsourcing the bookkeeping and accounting function, business owners can free up time to focus on the core areas of the business. They can have time to strategise, to grow the business, experiment with new ideas and products. More time on your hands means more time spent focusing on growth.Reason 4: Flexibility
Business can often be unpredictable. Certain times of the year can be extra busy while others not so much. As a result of this, the resource requirements can fluctuate. Similarly, businesses may need a lot more hands-on service during tax season or at the end of the year as compared to other times. By outsourcing the bookkeeping and accounting function, the business can remain agile. It can engage more services when needed, without being stuck with them throughout the year. Professional bookkeeping and accounting services generally have various service packages to choose from. A business can pick and choose the services that are needed just in time.Reason 5: Legal Compliance
Possibly the strongest reason for outsourcing the bookkeeping and accounting functions is compliance. In an ever changing legal environment, with many tax laws and requirements to navigate, it is easy to get overwhelmed. Moreover, it can be all-too-easy to fall foul of the law. The last thing a business needs is to face penalties for non-compliance to the law. This is where experts and professionals come in. Experts in the field of accounting are always better equipped with the right knowledge and skill to ensure compliance. Whether it is your monthly payroll that needs to be processed or withholding taxes that must be submitted, experts can help you. They can help ensure all deadlines are met and that the processes are executed correctly.Conclusion
Managing resources well is often the key to unlocking progress and success. Small-to-medium sized businesses can benefit greatly by outsourcing services that are not its core. This can free up time, cost less and provide a better platform for growth. Whether you are a new business just starting out, or an established business that has been around for a while, outsourcing your bookkeeping and accounting functions should definitely be on a priority list.Got feedback?
Still unsure about outsourcing your bookkeeping and accounting functions? Write to us on [email protected] and we will help answer your questions. Also check out our Outsourced Payroll Processing Services if you wish to focus your attention better on your core business.