Outsourced accounting is a service that provides extensive experience in the small business accounting department, with an accounting department handling the coding of daily transactions, accounts payable and accounts receivable, payroll, financial report management and many other services. Accounting outsourcing provides a full range of accountants that enables them to offer a small team of accountants at lower hiring costs.

Many small businesses, startups, and entrepreneurs find it difficult to hire an accountant, especially those with the right skills to prepare their deals, manage bank account operations, analyze financial data, and prepare outgoing invoices. It is more difficult to find a qualified and suitable person at an affordable price. More than 1/3 of small businesses outsource their accounting.

Accounting outsourcing is becoming increasingly popular with small and medium-sized businesses looking to reduce their overheads without sacrificing efficiency.

What accounting services do outsourcing firms do?
There is a long list of accounting services that can be provided by a third-party company. The services you need depend on the size of your office. Some of the services offered are:

  • Payroll processing
  • Accounts receivables and payable management
  • Filing federal taxes and submitting payments
  • Drafting of financial statements
  • Balancing ledgers
  • Bookkeeping

Benefits of outsource accounting
Cost Saving
When you spend less staff time on internal accounting functions, you save on employment costs such as wages, payroll taxes, benefits, training and recruitment costs. By picking and choosing only the types of services that you really need from your outsourcing partner, you can eliminate unnecessary hassle and expenses in these areas.

Faster Decision Making
The ability to deliver higher quality accounting information faster, more efficiently, and more effectively is critical. Working with accounting experts will provide more reliable information to help you make better business decisions in less time. You don’t have to spend time or money to keep up with a flurry of new laws, policies, procedures, and technologies.

Minimize risk

Reporting bugs can be very costly. The penalties and interest for wage and income tax errors are appalling. Litigation costs and judgments passed against a company can literally put it out of business overnight. Significantly limit the risk of loss for your company.

Increased profitability

Outsourcing allows you to focus limited resources on your core business in order to be more profitable. You can spend more time with your customers so that your company can provide them with a higher level of service.

Things to look before outsourcing
Not all companies are reliable. When entrusting your financial information to a company, it is important that you do your due diligence. Ask how experienced the accountants are, how they are verified, what software is used, how often they contact you, and how fees are calculated.

There are significant benefits for companies who choose to outsource their accounting tasks. Profitability at the beginning and flexibility in terms of contracts or scaling the number of functions at the end. Accounting and bookkeeping are an important part of business, but they are also complex. Requires a lot of time and specific knowledge. Without any accounting experience, many mistakes can happen that can lead to the downfall of your business or even bankruptcy.

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