Benefits of Outsourcing Accounting and Bookkeeping Services

Introduction to Outsourcing Accounting and Book-keeping Function

It is commonly believed that accounting and bookkeeping must be done within the organisation. But
many small businesses, start-ups, and entrepreneurs find it challenging to hire an accountant,
especially with the right skills, to prepare their business’ financial statements, manage bank account
operations, analyse financial data, and prepare the outgoing invoices. Nowadays, it is even more
challenging to find a qualified and eligible person at an affordable rate.Therefore, it is essential for
an organisation to gauge, if it is equipped with necessary skills and experience to do this job.
Outsourcing Accounting and Book-keeping functions of the organisation to a Service Provider who
has right knowledge, right people and the right qualifications and will deliver qualitatively and cost-
effectively, will be the correct way to move forward..
Benefits of outsourcing bookkeeping and accounting services are as follows:
Cost-Saving Accounting Services
Generally, most businesses consider outsourcing to be additional, and therefore an unnecessary cost
addition to their business. This is not the right perception at all. In fact, the savings that outsourcing
usually provides can be quite considerable as most service providers can offer their services at the
lower cost rates (due to lower labour costs at their location, specialisation wtc.).
❖ By outsourcing, you save Money:
● on paying the salaries,
● on taxes thereupon,
● office supplies
❖ You also get the benefits of full-time or part-time employee(s). You only pay for what you
need. There is no loss in productivity costs that come along with hiring full-time employees.
Eliminate Time and Costs of Hiring Processes
If one will look at the bigger picture, the recruitment process is a rigorous job. It takes resources to
manage it, from creating a recruitment strategy, selecting applicants to interview, conducting the
interview, shortlisting the applicants, selecting the final candidate. The recruitment process takes
your precious business time, adds to costs, and requires dedicated time either from yourself or your
employee. Many companies do not consider the time they spend looking for a professional
accountant but time is to be equally measured in terms of cost involved. It must be accounted for.
Saving your Time and focus on revenue
Outsourcing bookkeeping and accounting help companies to focus time, energy and resources on
creating the business strategies. It will help in generating more revenue, as well as networking and
building relationships with your customers. Since a specialised bookkeeping service provider is
taking care of all accounting functions, Businesses do not have to worry about any issues or concerns
related to accounting and finance, which helps save costs.
Expert Accountants and Bookkeepers

Outsourcing offers you the possibility of hiring a professional with a higher level of expertise at an
affordable price. Outsourced bookkeeping and accounting service firms continuously have to
improve their skills and qualifications to stay competitive and updated in the market. Imagine, 50
people working in the same office. They can easily share the new accounting trends, solutions and
tools. To add further, big accounting companies have direct access to training courses and they are
constantly updating and staying relevant.
Moreover, outsourcing to an accounting firm gives you access to the team of accountants. At a fixed
price a company gets a team of accountants. Choosing the outsourcing company wisely, one can be
sure that your accounting is in reliable and knowledgeable hands.
Scaling Accounting Easily
Accounting Service providers have the capability to scale their services, without any lag, as your
Company grows. For example, in case the bookkeeping and accounting tasks of your Company will
now require more than the number of staff presently required by your Company, the service
provider can do it immediately, without any time lag, and without requiring your Company to go
through a rigorous recruitment process.
Automation technologies
Most Accounting service providers use accounting automation software to save time. It will save
time, but importantly, it reduces risks. Automating accounting is minimizing human errors. Secondly,
in automation software, accountants get real-time reports. They assist in catching potential
problems and resolving them in an early stage. Thirdly, it will reduce the probability of internal
fraud.
An accountant is your advisor
A good accountant will always provide advice on how to make accounting more efficient. Sometimes
he might work with a couple of companies and propose an excellent experience from another client.
Whether it is about taxation, accounting software or even providing financial advise.