Benefits of outsourcing bookkeeping services to a professional accounting firm
The extent of your company’s financial transparency and the level of experience of the people responsible for that transparency will influence the growth and expansion of your company, as well as its survival. This is why accounting and bookkeeping are some of the most crucial aspects of any business and should only be taken care of by highly experienced licensed professionals.
Regardless of the size of your business and niche, as you grow, so does the need to keep accurate and transparent financial records. This is a good reason why that aspect of your business should never be treated lightly. Considering the relationship between in-house accountants and other employees under the same roof, outsourcing your accounting functions is often the most appropriate option to ensure financial transparency in all facets of your business.
But what exactly is outsourcing? It is the practice of assigning some job functions or responsibilities to a company or individual that specializes in providing services for such functions or responsibilities, rather than having those jobs handled by an internal employee or department.
Here are the key benefits of outsourcing your accounting functions to a professional accounting firm:
Gives you enough time to focus on growing the business
Outsourcing your accounting functions will give you all the time you need to turn your attention to other crucial aspects of your business. Once you outsource your accounting responsibilities, you can focus on providing high-quality services or products to your current and potential clients.
Also, you can develop strategies to enter new markets and expand in existing market etc. Focusing on these core business competencies and less on the burdens of accounting accuracy and transparency will translate into business growth and profitability that will outpace the costs of outsourcing.
Your payments will always be on time
Once you outsource your accounting functions, you no longer have to worry about missing payments, such as unpaid invoices or invoices that don’t go out on time. If your invoices are late, payments are late too and ultimately your business cash flow suffers.
Plus, if your invoices aren’t paid when due, you’ll receive collection calls, providers will limit or cancel their discounts, and you may even spend more time dealing with closing notices, disgruntled providers, and complaining collectors. But with a professional accounting firm handling your bookkeeping, you can sit back, relax, and watch all of your company’s accounting functions run smoothly.
You don’t have to worry about turnover or absence.
With your outsourced accounting functions, your business accounting will be done every day, every week, and every month, and you won’t have to worry about things like vacations, illnesses, or billing. The company to which you subcontracted your functions will be working for you 24 hours a day, ensuring professionalism in every facet of your work without excuses such as vacations, illness, absences, etc.
Maintain your cash flow during growth
The survival of almost any business is tied to its cash flow. Once a business begins to grow, it gradually absorbs cash. During periods of increased growth, accounting functions are often relegated to the bottom of the list of period management responsibilities. During that time, you may not have time to review your business report, manage collections and invoices, and your bookkeeping may end up in a very bad shape.
In such periods, you will easily notice that while your business is running, you have no cash in the bank to show for it. Getting out of that hole can require twice the effort it took to get into it, and you can easily lose sight of your business’s core competency as you try to get out.
Outsourcing saves money! When you outsource your accounting functions, you don’t have to worry about things like health insurance, vacations, sick leave, payroll taxes, retirement benefits, etc. The company you outsource your accounting functions to will bill you for their professional services and worker time based on the agreement you signed.
Money you should have spent on an in-house accountant can be reinvested in other crucial areas of your business. Also, in the long run, you can save a lot of money by outsourcing your bookkeeping services.
The accounting of your company will be in charge of top-level professionals.
Accounting firms that perform outsourcing services are often staffed with top-tier accounting professionals with several years of experience and education to survive without being hired by a single client. They have the skills, experience and expertise to deliver quickly and accurately.
You don’t have to worry about the competence level of your workers or whether they have the experience required to do their job as expected. Once you outsource your accounting services, rest assured that your company’s accounting functions are in good hands. Plus, you don’t have to go through the rigors of recruiting accountants, testing, interviewing, etc. before hiring. You can skip all of that once you outsource your accounting functions.
you’re still in charge
It’s easy to assume that once you outsource your company’s accounting functions, you’ll lose control of your money. That is pure fallacy. Outsourcing gives you more power to control your money and puts you in the driver’s seat of your company’s financial affairs. Each payment will require your approval before it is made. You will be involved in every relevant communication chain with your clients and prospects and your accounting reports will be consistent and up to date.
Without robust bookkeeping and accounting services, it will be difficult for any business to thrive and compete in its niche. Outsourcing your accounting services will give your business the edge it needs to be at the forefront of financial transparency, record keeping, and absolute accuracy in all your accounting-related transactions and matters.