As more and more companies look for ways to run on leaner budgets, some have realized that outsourcing some tasks is an excellent way to keep costs down while ascertaining quality. Outsourcing isn’t a new concept and for many years, companies have transferred services like accounting, bookkeeping, and CFO tasks to third-party firms. What was once deemed as an option for larger companies is know something that allows businesses of any size to reap the benefits it has to offer.
That being said, here’s why every company should consider outsourcing their accounting:
1. Reduce Overhead & Save Money
Companies generally spend between 2% and 5% of revenues to train and staff in-house accounting departments. While this doesn’t seem like a lot, outsourcing accounting can lower the total costs by eradicating expenses related to employee training, benefits, office supplies, hardware, software, etc.
Also, you get to save money from the potential repercussions of a financial mistake. Such mishaps can cost you more than the expense of outsourcing accounting.
2. Get Access to Expert Accounting Resources
If you run a small business, chances are the individual in charge of accounting is not a master accountant. If you are lucky, a member of your staff may have a background in accounting, but it is not their primary area of focus.
When you outsource, you will get access to a team of skilled people with a wide array of experience in accounting. This ascertains your books are always up to date, you are not at risk of being fined due to inaccurate paperwork and that payroll is done on time.
3. Get Advice on a Business’ Legal Structure
When launching a new business, you need to be committed and understand how to do it properly. Should you go in as a Limited Company or a Sole Trader? What is needed when registering for tax? How do you decide to pay yourself from your company?
Getting a professional accountant means you can ask them all these questions and help you get your company off the ground. They will help you get your business structure and finances right from the get-go, ensuring you’re compliant.
4. Improve Processes
One of the best advantages that most businesses do not usually see is that outsourcing accounting presents the opportunity to improve and upgrade your financial accounting processes. Outsourcing companies like Infinity22 implement the best practices, helping improve the timeliness and efficiency of data. Additionally, businesses have realized they can minimize the cycle it takes to close boos and can develop better baseline financial and benchmark processes in order to meet the regulatory requirements.
Whether it is gaining access to the latest accounting programs, or improving the payroll process, having accounting procedures that are up to date can help reduce costs, boost service levels, and create better cash flow.
5. Be Proactive & Scale
By outsourcing accounting, you can expect to reduce huge investments in technology, infrastructure, and human resources while allowing you to maximize production. This allows you to scale and react to industry changes faster. For instance, outsourcing gives a company the ability to handle activity surges that may be seasonal in a more efficient manner. Instead of having internal resources that are too slow at times and busy at others, you can instead hand these concerns over to an accounting firm.
6. Save on Technology Costs
When you outsource your accounting, there is no need to get additional software and hardware. A provider like Infinity22 will have access to the best accounting hardware and software out there and will have the know-how and experience to use it properly to boost your business’s bottom line.
As you can see, there are many benefits of outsourcing your accounting. So what you waiting for, get in touch with Infinity22 today for the best solutions in the industry!