INTRODUCTION TO OUTSOURCED ACCOUNTING
Many small businesses, startups, and entrepreneurs need help to hire an accountant. Especially with the right skills to prepare company financial statements, manage bank account transactions, analyze financial data, and prepare outgoing invoices.
Nowadays, finding a qualified and qualified person at an affordable price is even more difficult.
More than small businesses outsource their accounting work. Interestingly, most outsourced small businesses feel uncomfortable doing their accounting. However, it is generally accepted that accounting and bookkeeping should be done inside the company. But you must ask yourself if you also have the skills and experience to do this job and whether your staff is experienced enough to handle the increased accounting duties. In summary, 62% of all small businesses think they pay too much tax.
For this reason, consider outsourcing accounting services to a company with the right knowledge and qualifications. Also, can the company do the same job more quality and cost-effectively?
For the same reason, many executives have seen various positive aspects of outsourcing the bookkeeping and accounting services. However, it is important to note that outsourcing these services will help their business, employees, and customers.
Therefore, we would like to share the top 7 benefits our clients in Denmark, Norway, Sweden, and Switzerland experienced after outsourcing their bookkeeping and accounting work.
7 BENEFITS OF OUTSOURCING THE ACCOUNTING AND BOOKKEEPING SERVICES
ECONOMIC ACCOUNTING SERVICES
Most companies consider outsourcing an add-on and unnecessary expense to their business. This is not a correct perception at all. It’s the opposite.
Our outsourced accounting clients are willing to reduce costs without sacrificing quality.
The savings that outsourcing often brings can be quite substantial as most companies can offer their services at a lower price (usually due to lower labor costs on their site). By outsourcing, you save on payroll, taxes, office supplies, and benefits for full-time or part-time employees. You only pay for what you need. There are no lost productivity costs when hiring full-time employees.
ELIMINATE THE TIME AND COST OF THE RECRUITMENT PROCESS
If you look at the photo, the recruitment process is tough. Resources are needed to manage it, from creating a hiring strategy to selecting candidates to interview. The hiring process is time-consuming for your business, expensive, and you’ll have to spend time on yourself or your employees.
Many companies need to consider the time they spend looking for a professional accountant. And time also correlates with cost. Consider cost savings from business process outsourcing.
SAVE YOUR TIME
As your business grows, you’ll spend more time managing your money and less time growing it. Therefore, outsourcing administrative work such as bookkeeping helps you focus your time, energy, and resources on creating business strategies. This will bring in more revenue and connect and build customer relationships.
CERTIFIED PUBLIC ACCOUNTANTS AND BOOKKEEPERS
Outsourcing can allow you to hire a professional with a higher level of expertise at an affordable price.
Outsourced bookkeeping and accounting services firms must continuously improve their skills and qualifications to remain competitive. Imagine 50 people working in the same office. They can easily share new accounting trends, solutions, and tools. In addition, large accounting firms have broader access to training courses and are constantly engaged.
Furthermore, outsourcing to an accounting firm gives you access to the accounting team. For example, the fixed-price company has an accounting team at Baltic Assist—more than one person to take on different tasks.
By choosing your outsourcing company wisely, you can be sure that your accounting is in the hands of a trustworthy and competent company.
EASY TO EXTEND ACCOUNTING
Accounting service providers are available to scale your services dramatically without any lag. For example, if your accounting and bookkeeping duties exceed the number of functions per employee, you could easily be forced to add additional staff—no need to go through a rigorous recruitment process.
In addition, accounting and bookkeeping service providers charge by the hour. This means you can increase or decrease your hours without interruption.
Most businesses use accounting automation software to save time. This will save you time, but more importantly, it will reduce the risk. First, accounting automation minimizes human error. Second, in automation software, accountants receive reports in real-time. Third, they help detect potential problems and solve them early. Third, it will reduce the possibility of internal fraud.
Most accounting service providers are highly skilled in automation tools like Quickbooks, Sage, Visma, Xero, Microsoft Dynamics, SAP, etc.
You save time and money if your bookkeeper still uses only Excel spreadsheets.
An accountant is your advisor.
A good accountant will always advise on how to do accounting more effectively. Sometimes he can work with a few companies and provide a great experience for another customer. Whether it is tax, accounting software, or financial advice.
WHEN SHOULD YOU CONSIDER OUTSOURCING YOUR BOOKKEEPING AND ACCOUNTING WORK?
From our experience working with various Scandinavian and Western companies, accounting and accounting outsourcing tends to work best when:
- 1.A small business doesn’t need a full-time bookkeeper, but one has more skills than an office manager or front desk can provide.
- 2.A business, regardless of size, needs help finding the right skilled full-time employee at an affordable cost.
- 3.A growing business looking for an opportunity to scale accounting and Bookkeeping Services In Dubai anytime.
- Temporary services are needed, e.g., extra help with year-end reporting or if full-time employees are on vacation, maternity leave, etc.
However, even if you hire a qualified person, someone (usually the General Manager) will still need to be involved in the process when it comes to approving invoices, deposits, reviewing timesheets, etc. public, etc.
5 THINGS TO LOOK FOR BEFORE OUTSOURCING
Once you have decided to outsource, the next step is to choose an outsourcing company that perfectly suits your goals and objectives. Still, more importantly, that company can meet your needs and requirements when outsourcing accounting and bookkeeping services, quality and efficiency must come first. However, a few other essentials should also be considered.
WHAT BOOKKEEPING SERVICES DO YOU NEED?
Is it to prepare month-end reports, balance sheets, payroll services, and reports to the authorities or take care of your accounts payable and receivable? You may need someone to prepare your bank reconciliation and analysis or need to enter data into accounting software. Either way, you must be clear about what you do, what your internal employees are responsible for, and what you want others to do.
COMPETITIVE PRICE RANGE.
Each accounting and bookkeeping firm has its billing system – some charge by the hour, others by the month. Therefore, you can choose the payment term that best suits your needs and budget, but don’t base your decision solely on profitability.
Ensure the company you want to hire is experienced, professional, and qualified. Remember you can always ask their past or current clients for recommendations, considering market reputation, financial stability, and most importantly, ability to deliver consistent results, their high quality.
Data security plays an important role when outsourcing accounting services online. This respectable company treats customers’ data with the utmost security and ensures that every transaction is secure. This is necessary because you will provide them with not only cash information but also confidential data.
FLEXIBLE SERVICE LEVEL AGREEMENTS.
The bookkeeping and accounting service provider must demonstrate flexibility and willingness to meet your future needs and requirements. Therefore, we strongly recommend that you check the terms and conditions before signing the contract to know how to terminate it if you are unsatisfied with their work.
There are significant benefits to clients who decide to outsource their accounting tasks. The first is the cost-effectiveness ratio, and the last is contract flexibility or incredible functionality. Accounting and bookkeeping are important but complex parts of a business. This requires time and specific knowledge. Without accounting experience, many mistakes can happen, leading to your business’s decline or even bankruptcy.