Why your company should switch to Finance and Accounting Outsourcing
If you think outsourcing is out of the big picture, think again. The reality is, finance and accounting outsourcing remains a great way for companies to handle their finances. With the recent COVID-19 pandemic as well as numerous fast-paced technological advancements, it's a way for companies to stay ahead and ensure their finance and accounting matters remain operational no matter the situation.
In fact, according to a recent survey, 71% of finance executives outsource their functions.
Along with IT services, accounting is among the areas where outsourcing is rampant. This is because tasks involving them require certain skills and proficiency that some companies do not have internally.
Globally, the finance outsourcing market is valued at over $130 billion. Clutch reported that in 2021 post-pandemic, 23% of businesses planned to outsource their finance processes rooting from different motivations and circumstances. Banks and financial institutions becoming more dependent on external parties for their finance functions is leading to this amplification of outsourced services since the pandemic came in.
The above data tells us that an increasing rate of businesses have embraced the idea of outsourcing for the effective management of their business finances. In fact, your competitors might just be dipping a toe into outsourcing at this very moment.
If your competitors are joining the outsourcing bandwagon, they might outpace you sooner than you think. Can you afford to fall behind? If you plan to stay in the competition, it is more likely you won't let that happen. Read on to find out what are the benefits of outsourcing and the important advantages it can bring to your business.
Factors to consider when outsourcing
Deciding to outsource your accounting and bookkeeping operations gives you more time to focus on your company instead of fretting over your critical business numbers. Besides, don’t you think shifting tasks - from crunching the numbers to keeping an eye on your inventory and expanding your client network – is a little too distracting? Outsourcing gives you the opportunity to spend time wisely.
Among other things, outsourcing your financial activities can help you save costs. Running a business doesn’t come cheap. But you have the option to cut down on overhead costs and employees’ wages through outsourcing. After all, the rate of an outsourced accountant is significantly cheaper than hiring your very own bean counter.
Experience and expertise
An outsourced accounting staff has the skills and expertise that can put your business at a definite advantage. Since these professionals typically deal with other clients from different verticals, you have the guarantee that they are fully capable of maintaining your books and interpreting your financial data seamlessly.
Focusing on more important tasks
If your accounting tasks are too complex but you are hesitant to outsource, the tendency is that you end up asking your other employees to help you sort your books. If they are not familiar with bookkeeping tasks, helping you update your books may distract them from their own duties and responsibilities. But if you switch to outsourcing, your employees can focus more on their own tasks.
Access to modern tools
Small business accounting outsourcing opens doors to modern tools such as cloud technology. By outsourcing your finance and accounting services, you can explore cloud accounting more thoroughly and find out which cloud accounting tool best suits your business. If built-in timesheets and inventories are important for your business, you can take a look at QuickBooks Online. in case you need multiple users with different permission levels, Xero might be a better option for you.
Finance and accounting outsourcing services can do wonders for your business. It doesn’t just help you save costs, but it also gives your company its much-needed flexibility in this special circumstance that is the post-pandemic period.
Find the right outsourcing partner today
Maximizing your company’s assets will help you drive your business’ growth and success. To help you with this, we have a wide expertise in handling the numbers of companies across various industries and broad experience in using top-of-the-line software to better handle your finances. Contact us today to get a free consultation from our experts!
Download our Outsourcing: How to Make it Work guide today and learn how we can be your reliable outsourcing partner.
This post was first published on 28 August 2014 and edited 16 June 2023. Edited by: Aly Tagamolila