by: Sarah Joson
Tuesday, January 24, 2017 |
We all know that accounting and bookkeeping are some of the processes that require a lot of attention and time and each company has its own way of handling accounting tasks. Some do it the traditional way, which is hiring a full-time accountant, while others outsource it to accounting and bookkeeping services providers. Thanks to technology, it is now even possible and easy to work with someone offshore.
Now you are probably thinking, Why would someone want to outsource their accounting tasks?
Here are the common answers from various business owners and decision makers:
It’s a reasonable means for small and startup businesses.
Having full-time accountants on board is always an option. However, small and startup businesses have to make every penny count. Also, the level of workload and output is probably still manageable, so it isn't necessary to have someone on board full-time.
They are expanding.
During the process of expansion, the amount of work increases for the internal team. The impact of the growth is more noticeable in the finance team because while developments are being executed, the finance team needs to manage the company’s current/existing finances while making sure that every dollar spent in helping the company grow is accounted for. An outsourced accounting expert could help cushion the additional workload.
Have better control and reduce fraud.
Small and startup businesses rarely have access to controller and CFOs who can look at all the finance activities of the company. These experts are also the ones who are trained to look for fraud signs and carry out fraud protection processes without compromising internal relationships because they are a third party contractor and are expected to be neutral.
So when is the best time for a business to start outsourcing?
Some business owners prefer to do it after filing taxes so that they can start fresh with their outsourced accounting expert. By the time the outsourced accountant steps in, the majority of the work are already ironed out, so the accounting expert will have more time in familiarizing himself with the company's books and finances. Moreover, a clean slate will enable the client and outsourced accountant go through the critical events the company will face throughout the year – making it easier to close and evaluate the books when needed.
Outsourcing can be overwhelming at first, but as your organization grows, it is a great way to dedicate more time, talent and money to the core processes of the company instead of catching up with the routine grunt work and back office tasks.
Accounting outsourcing can help businesses in so many ways. When choosing the right accounting outsourcing firm, don't just go for the bigwigs in the industry, try to look for ones that will bring in additional value to your business and are willing to go the extra mile in helping the company grow.