Why One Should Consider Outsourcing Finance and Accounting Services?
When it comes to finance and accounting, there are a ton of services that are involved. Right from maintenance of financial records to performing internal audits, a variety of activities will be carried out by the dedicated resources to avoid any disruptions in the future. Now, there are also other tasks of the accounts team that are required to be often keep posted: accounts payable, accounts receivable, and settlement activities. However, with the level of intricacy involved in each of these activities, businesses certainly require experts who can seamlessly take care of finance and accounting outsourcing services.
This blog will take a detailed look into the importance of outsourcing finance and accounting services.
According to the latest report, nearly 80% of small businesses plan to outsource their services in 2021. Whether it is custom expertise, manage large-scale workloads, or help with growth, more and more businesses are now seeing outsourcing as a solution to most of the problems. The upward trajectory of outsourcing is one of the several trends in finance and accounting happening currently.
Here is a list that gives insights into why should you outsource your accounting and finance services?
- On-demand expertise
There is a subtle difference between outsourcing and consulting. Lately, businesses have taken an extra effort to bifurcate these two since the lines between them have started to blur as companies take on more complicated and customized accounting challenges. Having professionals who are have years of experience in accounting at disposal gives the organization access to all the resources they could ever require both to meet deadlines and to have updated records.
- Turnover security
Organizations are utilizing outsourcing services as they have fallen short of talented professionals in finance and accounting company in Singapore field. When an enterprise loses an accountant or finance expert, finding a replacement is never easy. Of course, in the place of in-house expert, outsourcing professionals can immediately fill in depending on how long the organization wants to outsource the services.
- Ability to evolve
Outsourcing experts are assisting organizations to respond to unfortunate situations such as pandemic and economic crisis. As finance and accounting field changes with time, outsourcing professionals are also adapting their ways so that in-house professionals can focus and spend time on more productive tasks.
- Real-time visibility
Having reliable, precise, and up-to-the minute insights are essential for any enterprise. However, it won’t be that easy. Outsourcing companies have now taken that responsibility onto their shoulders and are delivering quality information back to the organizations for real-time visibility into every financial aspect.
- Tax benefits
Most of the outsourcing accounting companies also offer tax preparation and advisory services and companies don’t have to run anywhere in the last minute. By relying on the same team and company which manages most of their finance and accounting services, it becomes easier for the outsourcing company to handle tax prep as well.
- Budgeting and forecasting
Budgeting and forecasting are two complex activities in the finance and accounting domain. And for companies who don’t have either time or resources to manage these complex yet essential tasks, outsourcing firms can easily take care by putting experienced accountants in charge.
How to know if outsourced finance and accounting services are right for my company?
If you are thinking of outsourcing your finance and accounting activities but are not sure if it’s for your company, then take a look at the below-mentioned factors.
- Lack of in-house employees
If you don’t have experienced in-house employees who can handle such finance-related tasks, then outsourcing accounting and finance services could be the right option for you. By doing that, you will be able to get financial statements from time to time which enhances your financial visibility and reflects your company’s activities and progress without having to hire and manage huge staff.
- Cutting-edge tools and technologies
Compared to an accounts outsourcing services firm, you might not have too many softwares or the latest tools with you that help with accounting-related activities. Now, having access to such cutting-edge tools and technologies could give you a competitive advantage in the marketplace. Right from accessing outstanding bills to general ledger reports, a technology-equipped outsourced firm will offer automation and mobility with which you can have access to real-time data and accurate financials.
- Not having the right numbers
One of the biggest red flags in the finance and accounting field is that not having those crucial numbers that you require to make the right business decision. Even if you do have the numbers you need, the lack of interpretation also calls for an efficient outsourced accounting and finance team to help you with all money-related matters.
- Too many errors
Are you noticing too many errors too frequently in your books? Well, this happens when the right person is not taking responsibility. Resolving such complex issues by an inexperienced professional could be a time-consuming task. By outsourcing to those who can handle these activities, you can even identify the errors that you never noticed.
How much does it cost to outsource accounting services?
Frankly, the cost of outsourcing accounting services depends on various factors such as revenue, industry, number of employees, etc. However, the typical cost of outsourcing finance and accounting services could range from $400 to $4,000 per month for small businesses. Now, as mentioned earlier, there are a number of factors to consider to arrive at the precise cost to outsource accounting services regardless of the business or industry. You can talk to your outsourced partner for a rough number to know the cost based on your goals. Also, make sure to let your outsourced partner know your goals. Wondering what goals? The skillsets you didn’t have before, save money, enhance systems, or improve internal controls.
How to choose the right outsourcing firm?
Once you decide to outsource your accounting services, it is now time to choose a partner who can meet your finance and accounting needs. But how do you choose the right firm?
- List out exactly what accounting and finance-related services you need to outsource.
- If not an accurate number, try to make a rough estimate to ensure you don’t go overboard and overspend by outsourcing the services that you don’t need to.
- Make a list of potential outsourcing firms based on how much you can afford and your requirements.
- Check every firm’s online reputation. You can take a look at their testimonials and reviews. See if you find any red flags.
- Whichever firm you choose, perhaps you could start with a trial project or a small accounting-related task. This will let you evaluate their performance and make an informed decision.
Accounting and finance services are not only a crucial part of the business but also a bit complicated. Such activities demand time and a lot of experience and knowledge. So make sure you outsource them to someone who knows accounting from A to Z.