Today, most companies are aware of outsourcing and use it in their IT or HR processes. However, many other ways outsourcing accounting services can benefit a company (large and small). Keeping a close and accurate track of your company’s finances is where an experienced accounting firm can help.
Affordable prices, quality assurance of services, and professionalism of accountants are the main advantages that the company can offer. Large accounting companies are ready to help businesses with bookkeeping and reporting in every major city. For example, in St. Petersburg, many companies turn to the Business Support Agency, more about which you can find on the website chpp.ru.
Outsourcing is when your company hires another company or individual outside your company to manage different business processes and activities. It happens in place of using an internal team or person. Outsourcing accounting, therefore, means hiring a service that provides a complete accounting experience. It typically includes everything from day-to-day transaction management, receivables, payroll, and taxation to financial reporting management.
Some companies also give you other company formation abroad, taxation, and legal advice. In some cases, outsourcing is subcontracting. In a broader sense, accounting outsourcing is sometimes referred to as “business process outsourcing,” which means that an external company performs some or all the business functions. Less commonly used is the more specific term Financial and accounting outsourcing.
- Budgetary problems. Decreased cash flows force companies to make strategic choices about where to save. It also frees up limited resources to focus on core business and customer acquisition and retention. Since accounting is not a primary process for many, you must find a service provider.
- Investment capital. Once investors start looking at your company, it’s crucial to show complete and accurate financial statements on paper. Providing detailed reports can encourage them to invest. It is vital to build trust with proper documentation.
- Bank financing. As your company becomes more mature and ready to grow, it may need additional funding from the bank. Same here; correct and complete financial statements are required.
- Advances in technology. With cheaper communications and improved infrastructure, operations are becoming more location independent every day. It gives any company a more comprehensive option of business partners and expertise than ever before.
On the other hand, accounting technology is advancing simultaneously, so a company may not want to be left behind in its accounting department. Expand resources quickly, keep up with all the technological advances in accounting, and spend time and money.
- Significant growth. When sales double yearly and a company’s cash flow increases, more resources are needed to manage revenue. To ensure that all business features are still being handled, it is easiest to outsource bookkeeping.
- It is changing the function of accounting. CFOs are under pressure to provide decision support and raise standards for compliance with laws and accounting principles. Outsourcing helps a company do this while streamlining unnecessarily complex and time-consuming processes. Accounting and finance regulations are tighter than ever. It has strict rules, and laws as the authorities and the public rely on such information to make financial decisions.
Time is money, and money is time; freeing up valuable time for yourself and your employees can be the key to business success. Reducing the cost of HR hiring people is expensive. Not hiring an accountant saves on additional expenses (health insurance, paid vacation, retirement, sick days, workers’ compensation, etc.). This income can be used to hire someone who can strategically promote your business. Plus, replacing your accountant every couple of years takes time and effort.
- Large companies keep pace with advanced technologies and accounting methods. They are reducing IT costs. Creating and implementing your own is unnecessary as it is expensive and time-consuming. Trust the standardized procedures already in place, don’t explore your applications and systems.
- Current data. There are real-time risks in business, but the best way to mitigate them is to ensure you always have up-to-date financial information. Data is processed as it appears, which can be a competitive advantage your company needs.
- Turnkey Solutions. If your business has pressing legal issues, you will save time and money by getting advice from your one-stop accounting firm. Professional accountants work closely with our legal departments, so there’s no need to rush to find help.
- Peace of mind. It can be said forever how significant a company’s growth is to ensure its people work on strategic choices and decision-making. Don’t spend much money limiting your people to something as dull as bookkeeping. Let your people develop business relationships or innovative ways to build a better product.
- Security is the foundation of running a productive business. Organizational succession and disaster recovery must be considered before the need arises.
- Fraud prevention. Unfortunately, it is more likely that a company will face internal accounting fraud than outsourcing. Internal accountants have much more access to sensitive information and can convince others to turn a blind eye here or there.
- Delicate information. As discussed, in-house accountants usually have much greater access to sensitive information. This information can be about salary, disability, and personal details. When moving your company overseas, be aware that disclosure misunderstandings are not uncommon. To be safe, choose to outsource to a large international company that knows the importance of privacy.