Accounting is one of the most important but tedious functions in small and medium enterprises. Hiring new employees for this may be the basic solution. However, it eats up time and resources that could be diverted to revenue generating activities.
Outsourcing this function is another way to solve this dilemma. It lets you acquire the skills of experts without the heavy costs and time constraints. Nowadays, more companies enjoy the benefits of outsourcing their accounting services.
Jag Dalal, managing director of thought leadership at the International Association of Outsourcing Professionals (IAOP), advises that in order to reap more of these benefits, you should outsource more accounting functions. According to him, “If you outsource only one function, you limit your benefits. If you outsource both (i.e., accounts payable and receivables), you get a value beyond improving the transactional component because the outsourcer can see when cash comes in and goes out. That can help the company take the best advantage of the cash-on-hand and optimise internal processes.”
Outsourcing your accounting services like payroll accounting, accounts receivables and accounts payable lets you enjoy the following advantages:
Outsourcing accounting function streamlines the process, letting you redirect your attention on your business performance. This means efficient transaction and easier management. There will be one less thing to worry about as you leave it to the professionals to take care of.
Utilising cloud computing allows your company to go paperless. Also, there will be lower operational cost compared to an in-house, full-time hiring. Outsourcing enables your company to reallocate these funds to other activities. It cuts down costs on infrastructure and training in-house staff. No need to worry about the taxes either.
Automation speeds up the process and reduces human error so you can be sure of your data’s accuracy. Outsourcing also ensures you of your company’s compliance with regulations. These professionals are specially trained in accounting so you can be certain of their knowledge and expertise in this area.
The beauty of cloud computing is that you can access your data anywhere, anytime using any device. With this, you can communicate with the accounting team and exchange information via phone or e-mail. All financial reports will be visible as well as your team performance.
Best of all, outsourcing your accounting operations keeps you up-to-date with the global trends in the industry. It gives you access to the latest tools that would help in assessing your company’s past financial performance and predict its future as well.
With these key benefits, your company can focus on its core competencies without spending much time and resources. But in order to earn these, you must choose the right outsourcing partner.
The Outsourced Accountant supports Australian and New Zealand accounting firms by helping them understand and implement outsourcing solutions to help them become more proactive and truly add value to their clients.
If you want to know more about outsourcing, call us at 1300 896 522 and download our e-book.