Should you outsource your accounting? If so, when is the best time to do it?
The time is NOW.
According to one report from the Global Business News, 75% of U.S. and European multinational firms have outsourced financial solutions, which include accounting, and that about 29% plan to continue outsourcing their needs.
‟The survey reported that 47 percent of executives surveyed said outsourcing financial functions has saved their companies a moderate or greater amount of money.”
Regardless of the size of your business, outsourcing will definitely have its benefits. Delegating certain aspects of your business to others can help you grow because it frees up time and resources that you can reallocate to things that require your attention.
Outsourcing your accounting will help your firm:
Reduce overhead and save money
Hiring a team of accountants will actually lead to less expenses for your company. For one, the cost of hiring someone from another location, like the Philippines, is lower than having in-house accountants. According to Payscale, an accountant’s salary is around P296,407, which is significantly lower than its Australian counterpart which is $70,337.
In one of Nick Sinclair, CEO of The Outsourced Accountant’s webinar held last year, the data gathered in this space is an approximate of 1:4 – 1 accountant in Australia is to 4 accountants in the Philippines. This not only increases a firm’s capacity but also makes way to be cost-effective.
Companies need to be as efficient as possible when it comes to time. There are many things that require attention and outsourcing will help you free up valuable time. By outsourcing tasks like payroll and bookkeeping you will be able to concentrate on managing your day-to-day operations and focus more on actually growing the business.
Outsourcing helps you have more time to focus on more urgent tasks at work
Access skills and expertise that may not be currently available
Outsourcing connects you with experts. This means you can expect higher quality work. It’s possible that some businesses may not have the resources to hire highly skilled professionals or can’t simply find one.
Accounting firms employ professionals who know accounting like the back of their hands. They have wide knowledge of the tax codes and laws—things you don’t have to worry about when running your business.
Take advantage of technology
It’s possible that some businesses—including yours—are still using outdated accounting software and applications. Outsourcing will allow you to take advantage of the benefits offered by the latest tools and applications without having to pay for them or learn how to use them. This will result in more accurate output and more organised documentation.
You can use the following software and apps to make your work a lot easier:
What’s even better is that outsourcing firms, like TOA, provide training to employees so they can effectively use these software to add value to their clients. Our training department offers software-related training courses for using Xero, MYOB and other relevant tools. Employees can also enjoy specific hands-on training through the Advanced Accounting Training.
Cloud computing is good for the environment
Outsourcing your accounting needs will significantly reduce your carbon footprint and paper use. Most firms that use the cloud for data storage won’t need paper any longer. It eliminates the need to print balance sheets, copying receipts, etc. Less paper use means less storage space.
You’ll have more space and save on operational costs. A study conducted by the Global E-Sustainability Initiative (GEI) looked at the impact of cloud migration to the environment. It showed that if 80% of the enterprises in the world switch to the cloud, we would see an estimated 4.5 megaton reduction in greenhouse gas emissions.
Easy access to financial data
Making informed decisions is vital in running a business. Having an offshore team will help you do this because all the data you need is right at your fingertips. You can have up-to-date access to information, allowing you to have a clearer picture of your company’s financial health.
Cloud storage makes it easier to access data for strategic decision-making
Enjoy peace of mind
Let’s face it, running a business can be stressful. There are lots of things to worry about. By having a separate team take care of something as daunting as accounting, you can simply focus on the things you’re familiar with.
Outsourcing gives you confidence and security, contrary to what many think. The growing concern for data security stems from the idea that offshore locations, like the Philippines, do not have the capacity to secure data. The truth is, the real issue is onshore, according to Jamie Beresford, CEO of Practice Protect. This means securing data needs to occur from the firm’s office and that it needs to be done right on Day One. One highly recommended solution is to use password protection via a single-sign on system.
“Fundamentally, it’s about consolidating passwords in a single identity per person.”
Practice Protect CEO
Employing protective measures like this adds more security. This allows you to restrict access to a specific location and person, among other things. In addition, the new law that mandates firms to disclose information about security breaches to ALL clients, should help clients easily recognise and avoid firms that have weak security measures.
Outsourcing can provide the perfect solution for your business. Regardless of which stage you’re in, this can have tremendous benefits to your company. By tapping into the resources and skills of an offshore team, you will have all the time you need to focus on growing your business.
If you’re looking for more efficient ways to run your business, consider outsourcing. Contact our local outsourcing experts / specialists for a free consultation or call us today at 1300 896 522.