Whether you are a small, medium, or large business, accounting and bookkeeping are two of the most important parts of any organization. Because these departments deal with the finances of the company, it can be challenging for small businesses, entrepreneurs, and start-ups to hire someone with the right skills to handle the job. Finding the right person (or persons) to handle an organization’s financial statements, bank account transactions, analyze financial data and manage invoices is difficult enough- but becomes even more of a tall order when factoring in honesty, integrity, trustworthiness, and, of course, the actual pay rate of those qualified to do the job.
Most businesses think that accounting and bookkeeping should be done within the business. That’s not necessarily true. Firstly, you need to ask yourself whether your company has the required skills and experience to do these tasks. If you’re lucky enough to have these in-house, you also need to ensure that they have the capacity to handle the workload. In many cases, it is more practical to hire someone else to do the job at a more affordable rate.
Many small and medium businesses have started outsourcing these tasks to third-party providers, not just because it saves them more money, but because of all of the other benefits and advantages that accounting and bookkeeping outsourcing brings. Here are some of the reasons why you should consider working with a bookkeeping outsourcing company.
- High level of accuracy. Accuracy is crucial, particularly when handling financial Outsourcing your bookkeeping and accounting means that dedicated staff will be assigned to handle your needs. This team has been trained to handle accounting and payroll tasks smoothly and efficiently and can generate results accurately- often higher than an on-shore, in-house team. Plus, third-party service providers usually set up several layers of quality control to make sure that they deliver the best service.
- Cost savings. One of the major advantages of outsourcing is cost-effective services. You can save up a lot on operational costs, which you can allocate towards the funding of your core business processes or to reduce expenses.
- Fraud check. Outsourcing your bookkeeping and accounting tasks to professional third-party service providers minimizes the chances of fraud being committed by in-house staff. It also minimizes errors which can be costly and can affect your company’s bottom line. Outsourcing companies can be responsible for every transaction processed, as well as the necessary quality and accuracy control.
- Flexible employment arrangement. Do you need someone to handle your books just for the tax filing season? Or do you need regular accounting services every end of the month? With outsourcing, you can arrange with your service provider when you need to use their service as you need them. Outsourced accounting services is useful particularly for start ups and small businesses that don’t have enough bookkeeping tasks for a full time employee to handle. You can also use their service on a pay-as-you-go basis.
- Consulting services. Whether you need to expand or scale down your business, having an expert you can consult with is extremely important. Your outsourcing partner can provide you with financial information and expertise you will need as you make crucial business decisions.
These are just some of the advantages to outsourcing your accounting functions. Some of the tasks that you can outsource include bookkeeping, payroll processing, compliance requirements, tax filing, account payables and account receivables.
Global Strategic offers professional accounting and bookkeeping services for businesses and entrepreneurs all over the world. To learn more about our outsourced accounting services, contact us at [email protected] or call us at (02) 638-3816.