Outsourced accounting, bookkeeping, and financial controller services have become popular solutions for small and medium companies today. The advantages, which once were only enjoyed by bigger enterprises, are becoming understood by smaller companies.
The most recent research from Deloitte shows that the main reason for outsourcing is the need to reduce accounting costs. This was the primary objective of 70% of the surveyed respondents (source: Deloitte Global Outsourcing Survey 2020)
However, accounting outsourcing is not only about operating cost reduction, it can help your business to achieve competitive advantages and reduce financial risks – the luxury previously affordable mainly by bigger enterprises. And, of course, outsourced accounting allows the business owners to focus on their business!
The main advantages of outsourcing accounting are:
1. Operational efficiency
Accounting outsourcing is a mechanism consisting of highly qualified employees: financial controller, CEO, internal auditor, payroll and other specialists. Well-functioning internal control in all areas of the accounting department excludes errors, the risk of additional charges, streamline your procedures and optimize your tax liabilities.
2. Elimination of staffing problems
The transition to outsourcing frees the business from total dependence on the full-time accountant or bookkeeper. When outsourcing, there are no such problems as: the accountant is sick, the accountant went on maternity leave, the payroll specialist is on their leave.
3. Quality of accounting and reporting
The main feature of outsourcing. But keep in mind that only experienced outsourcing specialist can provide quality. The quality of service is made up of several components: experience of employees in outsourcing company, distribution of functionality, automation of accounting processes, and even a proactive position in relation to tax planning.
4. You pay for what you get
The client of an accounting outsourcing firm always clearly understands what service and in what volume he ordered, how much it costs, and what he will receive “at the end”.
The impact of COVID-19 plays a key role nowadays: you can save on your operational cost and organize your finance department working remotely.