Are you looking for better ways to grow your business bottom line? If so, one of the best decisions you can make is outsourcing your accounting operations.
A KPMG survey shows that at least 40 percent of companies outsource their accounting services. Therefore, you are not alone in this.
As a business owner, you want to save your money, and time while making better financial decisions. Well, the benefits of outsourcing your accounting department go beyond the time and cost savings. It gives you peace of mind knowing that the exercise is in the hands of professionals allowing you to focus on your key business mandate.
Here are the main reasons for outsourcing accounting tasks.
1. To Save Money
Some business owners believe that outsourcing non-core business functions is more expensive than managing them internally. Well, they’re wrong.
Outsourcing an accounting service works to save you money. That’s because it’s not cost-effective to maintain a full-time accounting department, especially for smaller businesses.
Outsourcing your accounting operations helps you save 40% of the total costs. That’s because you don’t have to pay a monthly salary or other benefits packages like training or equipment. Further, your insurance costs will be lower.
Even better, you can engage the accountants on a need-to-need basis. The less it costs you to run your accounting operations, the more profits you make.
2. Focus on What You’re Good At
As a business owner, understanding every aspect of your business is key. However, this doesn’t make you an expert in the area.
Therefore, unless you are an accountant by profession, you’re unlikely to have the best of skills here. However, you are an expert in another industry.
Why then don’t you outsource the accounting bit and focus on your core competencies? Doing so frees your time and mind to focus on what you are good at. The result is higher productivity and a better quality of work.
3. Reduce Theft and Fraud Cases
Employee theft and fraud is a serious problem that affects most businesses. And chances are, your business isn’t immune from this vice.
Employee-related theft cases can greatly affect your business. You don’t want to find yourself in this pit.
According to statistics, businesses with less than 100 employees are most vulnerable to fraud and theft cases. On average, these businesses lose $155,000 a year.
Outsourcing your accounting helps you detect fraud cases in your business. Even better, it deters employees from engaging in this vice.
4. Reduces Your Tax Burden
Accountants have in-depth knowledge about their business and the relevant tax codes. As professionals, they take time to understand any new tax laws and what it means to their clients.
With this information, the accounting service will advise you on how to comply with the new law. As such, you’ll not only save money on taxation but also avoid getting into problems with the relevant taxation authority.
5. Flexibility and Scalability
Several business owners think that scalability is easier when you’re running an internal accounting department. Well, they’re wrong.
For instance, how long does it take to grow or increase your workforce? It might take you a month or two to advertise, recruit, interview, and hire a new employee.
The process can take more time considering that you have to place your new employee on probation for a month or so. As such, getting a new hire in the office takes a minimum of three months.
Further, the new employee requires six months to familiarize with your organization. That means, six or more months are needed to get your employee to reach their full potential.
In contrast, accounting service firms have a ready team of accountants at their disposal. Increasing or reducing the accountants allocated to your company takes less than a week.
Qualified accounting service is the best investment you can give your company. These professionals offer quality services to protect your business interests while saving you on cost. Plus, the professionals help you focus on the areas that are more suited to your skill set.