Business conditions are changing and outsourcing is on the rise.
Today’s business owners are facing greater expectations when it comes to financial transparency and government compliance. All too often, businesses are juggling day-to-day responsibilities alongside more complex and time-consuming tasks such as finance, accounting, compliance, internal audit, and risk management. They are simply trying to do more with fewer resources.
Increasingly, businesses, both large and small, are turning toward outsourcing as their preferred solution—with accounting being one of the primary outsourced tasks. In fact, many business owners are finding that outsourcing provides a unique opportunity to receive accounting support from talented professionals without the added overhead associated with in-house resources.
Some of the advantages of outsourcing accounting tasks include:
1. Accessing Expert Advice.
In The Economist, Tom Peters argues that if the output of an in-house accounting division cannot be successfully sold on the open market, then business owners should subcontract work to firms that specialize in accounting. Why? Accounting experts live, eat, and breathe their job. They can do it right and do it cost effectively.
By teaming up with a firm, you can feel confident that only the most qualified individuals are handling your finances in an unbiased and objective manner. Services are often tailored and scalable to bring you the right expertise at the right time for greater flexibility across the board.
2. Meeting Compliance Requirements.
Accounting experts are up-to-date on all the latest regulatory requirements. They are attuned to what is happening across the industry and carefully monitor relevant laws and regulations to stay current on processes. You can gain the peace of mind in knowing that your accounting tasks are done properly by a qualified expert in the field.
3. Reducing Business Costs.
A recent study conducted by the General Auditor Information Network (GAIN) found that an average audit department produces 1,400 hours of productivity per employee each year and absorbs the remaining hours as the price of having the department. With outsourcing, you only pay for the services you need, when you need them.
Firms have the ability to accommodate your cash flow realities and organizational risks gaps to ensure that you’re getting the most out of your investment. Business owners can choose full outsourcing, co-sourcing, or even specialized resource enhancement to help address temporary staff shortages.
Even better, firms manage the relationship between the experts and the business, meaning business owners don’t need to worry about personnel carrying costs or turnover. You can downsize or upsize accounting needs without dealing with traditional personnel challenges such as the risks of unemployment claims or the need for new hire healthcare packages. Businesses also no longer need to allocate time or money to training and recruiting efforts; two tasks that typically bog down in-house resources.
4. Improving Productivity.
With a team of experts in place, business owners can rest assured that the accounting responsibilities will be completed on time. In fact, accounting tasks are streamlined to produce higher quality results and frequently include powerful analytics to help you better understand budgeting concerns and business performance. Suspicious activity is also immediately reported to the business owner, which reduces the likelihood of fraud or government penalties.
5. Gaining Valuable Time.
With the right outsourcing provider, a business owner can receive support for his or her accounting functions, freeing up valuable time and allowing for better workload management. Firms often provide help with a range of treasury and cash management tasks such as working capital optimization, cash flow preparation, credit facility analysis, debt compliance monitoring, investment monitoring, and even special projects such as initial public offering preparation. This means business owners can delegate responsibilities and redirect their focus on what really matters to them: the future of their business.
If you’re considering outsourcing, do diligent research to find the right provider for your current and future business needs. With a solid outsourcing strategy, your business can tap into some of the best talent in the accounting industry, saving you and your business both time and money.
RAFAEL VIDAL, CPA