So many companies outsource their production, their IT, their HR and, of course, their customer service. However, what a lot of people tend to forget is the fact that accounting is still one of the most outsourced tasks in the world. In fact, it is not uncommon to have people outsource their private finances and have their household budget done by a professional. All of this raises one serious question – why is outsourcing your accounting so appealing as a trend? Well, here are the top six reasons.
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1. Financial savings
By automating your bill-paying processes, you can drastically reduce the cost of your utilities over the course of a year. For instance, an average SMB spends about $12 just in order to pay a bill, whereas, online, this can be done for as little as $1,5. In other words, you can save about $10,5 for every single bill that you pay, which amounts to quite a saving. Needless to say, most accountants have adopted these smart business practices and use them on a regular basis, which means that they are more than well-versed in this field. It goes without saying that your business could greatly benefit from this as well, especially due to the fact that every single dollar counts.
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2. A reduced chance of in-house theft
Another thing you need to understand is that it’s much more probable for an in-house accountant to engage in a fraud than an agency you’re outsourcing to. An agency has its reputation to worry about and any gain they would get from cooking your books simply wouldn’t be worth compromising their standing with their other clients. Moreover, people from an accounting agency you’re outsourcing to are less connected with people in your organization, which means that they are loyal to you exclusively. In other words, they are much less likely to cover for someone and are bound to inform you if there’s anything odd in your accounts.
3. Familiarity with local regulations
Every region, country and state have their own laws, taxes and regulations, which could become a problem once your company starts branching out. Needless to say, professional accountants have a well-developed network within the industry and may even know some people within the establishment. In other words, it is much easier for them to get adjusted to a changed set of circumstances than for a layman or even a novice in-house accountant. For instance, if you plan to start, relocate or branch out to NSW, it would be wise to look for financial services in Sydney and raise the concerns you have during a meeting. This alone might be enough to convince you just how beneficial such collaboration can become.
4. Investors love them
Some SMBs that run as sole proprietorships believe that they can handle the issue of accounts on their own. However, the potential investors you hope to attract in the nearest future might not share this point of view. Clean books, accurate financial projections and the fact that your books are handled by an accountant/agency of renown can be enough on its own to raise your company’s investment appeal. Overall, if this was the only benefit that a professional accountant brought, it would still be more than worth considering. With this in mind, it seems that outsourcing your accounting might just be a scalable perk.
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5. Avoiding the diversification of your operations
The main reason why so many companies decide to outsource their HR, IT and customer services is due to the fact that they hate the idea of diversifying their operations too much. Sure, there are other reasons behind this too, but the sheer thought of just how daunting this can be from an administrative standpoint is more than enough to make a lot of people instantly opt for a simpler option. All in all, this is also one of the reasons why major conglomerates still outsource, even though they clearly have both resources and capacities to do everything in-house.
6. Greater expertise
Finally, you need to keep in mind that not everything can be brought down to sheer numbers. You see, it is possible to make a financial projection and determine how much starting your own accounting department will cost, yet, there’s one thing you simply can’t quantify – expertise. It is impossible to tell how long it will take for your team to reach the same level of expertise in the field of SMB accounting as a professional (if ever), and it is even more difficult to make an estimate of how much money you stand to lose in the meantime.
The best thing about outsourcing your accounting is the fact that the above-listed six advantages are just the tip of the iceberg. Things like time saved and the reduction of error margin are incredibly hard to quantify, yet, they are more than legit reasons for one to go for outsourcing. Then, there are the issues of tax-deductible expenses and many other solid tips that an SMB owner can receive from a skilled accountant. With this in mind, it becomes more than clear that the benefits of outsourcing your accounting are too many and too great to be safely ignored.