Outsourcing the accounting function can be beneficial for many companies, but it is not the right choice for everyone. For most businesses and nonprofit organizations, accounting is not a core competency, and finding and hiring accounting experts is becoming more difficult. Hence, business owners need to decide if they want to set up an internal team to manage their finances or outsource this function. Here are five reasons why you should outsource your accounting.1. Access to Expert Accounting Expertise
The number one reason to consider outsourcing all or parts of your accounting function revolves around your ability to recruit and retain the right accountant or team. While our nation is experiencing record unemployment, there is virtually zero unemployment for accountants, especially those with deep industry experience such as government contracting and SaaS companies, to name a few. Additionally, if a small business is doing its own accounting, there is a good chance that the person in charge is doing accounting alongside other roles. Even if you have a bookkeeper doing your accounting, you may need strategic final advice which only qualified senior finance professionals can provide. When you outsource your accounting, you will manage a vendor who has access to a team of skilled accountants who will help with all areas of accounting: accounting, bookkeeping, payroll, financial reporting and so much more. This ensures that your books are always up to date and you have accurate financial data.2. Save Money and Reduce Overhead
Outsourcing your accounting operations can save you money by eliminating the costs (payroll, benefits, equipment, and training) associated with full-time or part-time employees. When you outsource the accounting function, you only pay for the actual accounting work done by the accounting experts. This saves payroll costs as well as increases productivity. In some instances, the cost savings can be as much as half of the cost of an employee.3. Focus on Your Core Business
As a business leader, managing or being directly involved with your accounting can be an ineffective use your valuable time. When you outsource your accounting, you can focus on business goals, growth and managing your day-to-day operations, while your outsourced accounting team focuses on managing your vendor relationships, processing your transactions, and keeping a pulse on your financial trends and data.4. Access to Best-In-Class Technology
Today, in a predominately remote environment, cloud-based accounting applications allow you to access financial data and records online, giving you up-to-date access to your information such as cash balances, at any time, from anywhere, but the investment in technology can be expensive. When you outsource your accounting, there is no need to buy extra hardware and software for your accounting needs. You will have access to leading accounting software with timely, accurate accounting records and reporting at your fingertips, plus you’ll have total visibility into the financial health of your business, all at a reasonable cost.5. Eliminate Risk and Enhance Security
When you outsource your accounting, you greatly reduce the risk of employee fraud and you ensure security of your financial data. Outsourcing providers employ rigorous safeguards ensuring access control, confidentiality, impartial standard of checks and balances, and redundant data backup. Financial data is accessible real-time giving you full transparency on your financial situation to make sound business decisions.
There are many other benefits to outsourcing your accounting function, but rest assured that when your financial information is reconciled timely and accurately, you will avoid any potential threats of fraudulent activity. Gain access to a team of experienced accounting professionals who you can count on, achieve total visibility into the financial health of your business, and get peace of mind to make more accurate and informed decisions.