Accurate accounting is the backbone of any successful company. The correct figures for all departments must be at any company auditor’s fingertips to ensure legal compliance with revenue services and other legal entities.
Companies of all sizes may need to outsource accounting services for a number of reasons. Small companies may not have the capacity to employ a dedicated qualified accountant. Medium-sized enterprises may have their staff double-up on accounting duties while large corporations would require a team of specialists for their intricate financial systems.
What Are Accounting Services?
Accounting is a broad term that encompasses a range of financial services. Professionals who handle accounting services are responsible for handling all financial transactions that occur within a company. Within this, there are many sub-sections such as financial, managerial and cost accounting, taxation, statutory reporting, and payroll maintenance.
Any reputable business would need all these services. However, these services can often be time-consuming or require an experienced professional. That’s where outsourcing comes into play. Read on to learn more about when to outsource accounting services and the many benefits of this route.
When to Outsource Accounting
Even in its broadest form, accounting is a specialist job. Accountants require a minimum of four years’ training to qualify for an entry-level position.
It may not be viable for a company to vet and employ an in-house professional when it may be more beneficial to outsource such a position. Let’s look at some situations where outsourcing accounting may be the better option for your business.
Time Management Needs
Accounting is labor-intensive and time-consuming as all aspects of the work require high-level accuracy and close attention to detail.
Since in-house employees already have such an extensive to-do list on a daily basis, they may not have sufficient time to perform the additional tasks that accounting requires. Rushing through such jobs will inevitably result in errors that could be costly in financial and reputational terms.
As a company expands, so too does the responsibility to ensure accurate financial records are maintained. It would be easy for the task to become unmanageable by too few staff members as the scale of the job increases.
A company may decide the time is right to establish their footprint in other states or even other countries, and these branches may be better streamlined if they outsource accounting services.
Lack of Proper Equipment
Accounting tools are constantly being refined with dedicated software. It may not be feasible for a company to keep track of constant updates and new technology. However, a company that offers its services as an accounting outsource would be expected to stay up to date with all new products on the market.
Both hardware and software are expensive to purchase and maintain; if a core function such as accounting is outsourced, this may reduce the need for such equipment.
Benefits of Outsourcing Accounting
There are numerous advantages to choosing to outsource accounting and financial tasks. It reduces the immediate responsibility of the company and ensures peace of mind. Keep reading to find out more about the benefits of outsourcing accounting.
Accountants undergo stringent training for good reason. They may ultimately be the buffer between the company and the IRS, so errors are simply not acceptable. As trained professionals, they understand the responsibility they carry to ensure fair and accurate reporting of all company transactions. A qualified accountant is trained to pick up discrepancies, whether inadvertent or deliberate.
Outsourcing accounting services provide your business with these trained professionals that will ensure your financial records are in order and catch errors before they become detrimental.
Focus on Business
Many business owners ask the question, “Why should I outsource accounting services?” The answer is simple — it frees up staff to concentrate on their core duties.
It may be tempting to ask staff to step up and assist in accounting when deadlines are due. This may be fine in the short term, but it is not sustainable in the long run as staff may flounder with the additional workload. Outsourcing your accounting services will free up your employees to work on their core business tasks.
It may appear that outsourcing accounting would incur additional costs, but it can actually be a great cost-saver. The company would no longer need to invest in additional IT infrastructure or office furniture. In-house payroll and labor costs can also be reduced with an outsourced team. Staff members are an expensive commodity so any reduction in their numbers would be beneficial to the bottom line.
Tips to Outsourcing Accounting
Once the decision has been made to outsource accounting, bear these tips in mind for a successful transition:
Use an Outsourcing Company
An outsourcing company such as C9 Staff can advise on what accounting duties a company should expect to be performed. Their expertise and experience will release management from the stress of overseeing administrative jobs that are better performed by a third party, allowing staff to concentrate on the core business. This will allow the company to grow while being reassured that its accounting function is in capable hands.
Establish Clear Expectations
At the initial meeting between the outsourced company and the client, it should be established who is responsible for what areas. For example, it should not be assumed that because the outsourced company processes the payroll that they will also print and deliver payslips. Draw up a detailed plan and timeline to ensure everyone knows who completes each task and when.
Streamline Information Sharing
Determine clear routes of communication between the outsourced company and the staff they will liaise with. Financial information should be turned over timeously and in full on request, and any related information should be relayed that may assist either party. Ensure everyone knows what is expected of them and clarify that all queries should be resolved promptly.
Outsource Accounting with C9 Staff
At C9 Staff, you’ll have access to trained financial professionals with expertise in accounting, bookkeeping, financial advice, and accounts payable. With no more than a reliable internet connection, a company manager can be sure that their accounting operations will be conducted accurately and with absolute integrity. No matter the size of the operation, C9 staff will efficiently take on the role of outsourced accounting around the globe.
With 11 end-to-end managed services, including flexible infrastructure, unlimited candidate replacement (should this prove necessary), and transparent billing and contracts, any company manager can sleep easy, knowing their business is running smoothly and at its full capacity.
Contact C9 Staff today to learn more about how we can help you outsource services!