Is it really an advantage for business owners to hire a bookkeeping services firm for their financial and accounting functions? The overwhelming statistical evidence says, “Yes!” as does the experience of thousands of business owners and even the heads of larger companies.
Ed Thomas, an analyst for Ovum research, found that CFOs who want to outsource finance and accounting processes believe that driving efficiency is a high priority. This was the result of an Ovum study of 150 large companies in the United States, United Kingdom and Canada. The majority of their survey respondents stated that delivering efficiencies, whether within the department itself or across the company as a whole, was the main strategic aim of their accounting departments.
“This is a wider trend in outsourcing as a whole,” Thomas explains. “Cost reductions are the table stakes, and companies want to know what else their outsourcers can do to make their processes and technology run more efficiently.”
is especially valuable for smaller businesses with limited resources and
technology. Many companies are outsourcing to providers with greater expertise
and technology resources than they have in-house. “An outsourcer is going to
have access to state-of-the-art technology, and experts who use those software
packages every day,” says Greg LaFollette with CPA2Biz.
According to a report from the Association of Chartered Certified Accountants (ACCA) companies using outsourcing fear that though they will reduce costs they also lose control of those functions. The truth is that they benefit from a number of cost advantages and, the report shows, their control improved, as well. In fact, most owners tend to manage an outsourced bookkeeping services provider more diligently than they might have with an employee.
Bookkeeping services are one of the most common functions to be outsourced. Most business owners prefer not to take the time to do it themselves, but it has to be done. Hiring someone in-house can be costly, unless one can find a part-time person willing to manage the bookkeeping operations and little else. Yet, this involves recruiting, screening, interviewing and hiring an employee.
is why business owners just want to hire someone else to do it and not have to
think about it themselves until tax time. And, while totally abdicating the
responsibility of this financial task is never recommended, delegating it
through outsourcing to a professional bookkeeping services provider is a real
win for most businesses.
There is much more involved with outsourcing than simply letting someone else handle the potential headaches of your accounting functions. In addition to not having to find and hire in-house bookkeeping person or doing it yourself, businesses can benefit from a number of advantages by outsourcing bookkeeping operations:
1. Free up time for you and your staff
Outsourcing your bookkeeping operations allows you to eliminate a significant number of personnel hours on your end. This is time that can be re-directed towards operational tasks and functions that can be used to improve your business. This is especially true if you are currently using one of your employees for multiple functions with bookkeeping being only a portion of them.
2. Access to professionals
By outsourcing your bookkeeping operations you will have access to the combined knowledge of the bookkeeping firm’s professional staff. The variety of experience, training and education available to a client by a professional bookkeeping services firm far outweighs the cost required for outsourcing.
3. Streamlines your staffing needs
Whether you have a full-time or part-time bookkeeper on staff, outsourcing to a bookkeeping firm allows you to streamline your staff requirements and focus on more of the revenue generating tasks and functions that will make your company more competitive. Outsourcing proves the maxim that “less is more.”
4. Can be more cost-effective
You can actually increase your bottom line by outsourcing your bookkeeping operations. Not only do you save money by no longer paying full-time or part-time wages and benefits to a staff bookkeeper, but you also save by having one or two fewer employees to manage and oversee. In addition, when you outsource your bookkeeping you are paying only for the services you have contracted for.
5. Advantage of state-of-the-art tools
If yours is like most small businesses, it can be difficult if not impossible to purchase high-end bookkeeping and accounting programs. This does not take into account the added expense of upgrading continuously. In addition, there is the cost of services and tools necessary to keep abreast of changing laws and regulations. As a client of a bookkeeping services firm those tools are at your disposal at no additional cost
6. A team approach
One of the constant drawbacks of being reliant on a sole employee for your bookkeeping functions is limited capacity and availability. If your bookkeeper falls behind, becomes overwhelmed, or is out sick, the work must fall on someone else or not get done. Outsourcing, on the other hand, provides you with a highly trained and professional team of specialists and managers.
7. Increased efficiency and accuracy
One of the greatest benefits to owners and managers is the accountability (and liability) that is shouldered by an outsourced bookkeeping services provider. In other words, the firm you hire is ultimately responsible for the accuracy and cost-effectiveness of the services they provide for you. It is in their best interests to ensure that their tools, staff, and expertise are as high-level as possible. As an owner and client, it is in your best interests to ensure that you are indeed gaining in your ROI with outsourcing. . In addition, you are assured of daily backups and organized records and books to keep clients compliant.
8. The ability to grow
your business grows, your accounting and financial process needs will grow
accordingly. Having the built in limitation of an in-house bookkeeper means having
to add to your staff as your company expands. However, with an outsourced
vendor you can simply adjust your requirements as needed.
Horne Financial specializes in helping small to mid-size businesses to outsource their bookkeeping services. If you want to know how outsourcing your bookkeeping services can save you time and money, please contact us at (707) 338-1722 or email us at firstname.lastname@example.org to set up your free consultation session.
Stephanie Horne is an experienced bookkeeper and Enrolled Agent. She is the owner and founder of Horne Financial Services in Rohnert Park, California along with this website and has over 20 years of in person, virtual and outsourced bookkeeping/accounting and tax preparation experience with businesses of all sizes.
Her love and passion is to work individually with business owners and families to help alleviate any financial stress or concerns by helping them to understand and have better control of their income, expenses, cash flow, and tax liabilities.
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