Accounting departments are often understaffed and overstretched, which is why outsourcing accounting services can be an attractive solution.
Outsourced accounting services can offer many benefits for businesses, from improved efficiency to cost savings. But there are some lesser-known advantages of using an outsourced accounting service that you may not have considered - from freeing up resources to improved financial advice.
Read on to discover the five overlooked benefits of outsourcing your accounting needs.
When it comes to outsourcing your accounting, one of the biggest worries that CFOs have is that they'll lose time and money by having to hand off the process to someone else.
But this fear is unfounded, as outsourcing can save you time and money by making sure your accounting processes are streamlined and efficient —and that's what makes it worth it.
When you outsource accounting services to an expert in the field, your business will see many benefits. One of those benefits is improved efficiency. By outsourcing your accounting, you free up organizational personal resources - think staffing costs, technology expenses and more – to refocus them on other areas of the business.
Managing a large number of transaction records and financial accounts is time-consuming, so eliminating the need to reconcile them frees up time for activities that are not directly related to revenue generation.
Cost savings is one of the most obvious benefits of outsourcing accounting services. When you work with an external team, you reduce the need to hire full-time experts and maintain an expensive in-house team. In turn, costs associated with technology, infrastructure, recruiting and other HR processes are either avoided or minimized.
All of this leads to fewer costs related to hiring and training personnel for financial services. When you outsource your accounting services, you can work with a team of experts who have years of experience in various industries and knowledge of different accounting tools, resulting in tangible cost savings for the business.
Working with an outsourced accounting services provider helps you to reduce the risks associated with doing business. Accounting fraud is an ongoing concern for businesses, as internal and external hackers try to steal sensitive information or manipulate financial data in order to exploit weaknesses in your company’s infrastructure.
A knowledgeable partner can assist in risk mitigation strategies and provide practical advice that is tailored towards your individual risk position such as limiting access privileges for employees or implementing anti-phishing measures.
Furthermore, by outsourcing these tasks, you can focus on running your company while knowing that your important information is being handled by experts who will take proactive steps to protect it from potential threats.
Read: Fraud Risk Management: Addressing the Common Types of Internal Fraud
Ability to Focus on Core Business Functions
With outsourced accounting services, you free up valuable resources that can be reallocated to core business functions. Focusing on your core competencies enables your business to emphasize its unique selling point, and ultimately outperform competitors. This pivot in strategy allows the business to dedicate more time and resources towards higher-order tasks like research and development, enhancing marketing strategies, or developing deeper relationships with customers for future success.
Greater Access to Expertise and Resources
Working with an outsourced accounting services provider gives you access to a range of expertise and resources that you may not have in-house. An experienced provider can recommend best practices for the latest systems and software programs, giving your business a competitive edge.
This means you have access to functionality like cloud-based software, automation and data analytics that can help streamline processes and generate timely insights. It also eliminates the costs of maintaining a large in-house IT infrastructure or purchasing expensive new software.
Furthermore, it ensures that your financial data is secure and up to date. Accounting services providers also handpick their teams to ensure they possess the right skills to support your needs, providing quick access to highly experienced accounting professionals.
Read Next: How to Select the Best Financial Accounting Outsourcing Services
It’s clear that outsourcing your accounting services can offer tangible benefits for businesses, including freeing up time for other parts of the operation. For some companies, this benefit is often overlooked because they’re too busy focusing on other areas of their business.
However, if you’re looking for ways to save time and money—while also making smarter financial decisions—outsourcing is an option worth exploring.
Find the Right Partner
We have a wide expertise in handling the numbers of businesses across various industries and broad experience in using top-of-the-line software to better handle your finances. Contact us today and we'll help you find the right solution for your needs.
Download our Outsourcing: How to Make it Work guide today and know how we can be your reliable outsourcing partner.