Finance and accounting (F&A) is one the most commonly outsourced business processes, and for good reason. Accounting tasks demand time, careful attention and expertise – things that small business owners rarely have in their hands.
Indeed, accounting outsourcing is a strategic way to maintain operational efficiency while growing your business. But, is it right for you?
Do You Need Accounting Outsourcing?
Before taking the leap into outsourcing, ask yourself if you truly need one. Take a hard look at your current operations as well as your skills. Do you have spare time to record transactions or reconcile bank statements? Do you have skilled in-house staff who can handle your books, file reports and perform audits? Do you have knowledge of relevant laws and regulations?
If you have a good background in accounting and are willing to learn about the laws and processes involved, you probably don’t need a F&A contractor – at least not at the moment.
However, if you can barely keep up with your daily operations and you need an experienced person to handle your accounts, then now is the perfect time for accounting outsourcing.
Accounting Outsourcing vs. Hiring In-House Staff
You are probably wondering: “Why do I have to outsource when I can hire a dedicated bookkeeper or accountant to do the job for me?” Well, there are plenty of advantages when you outsource tasks.
Hiring an in-house employee means you will pay out a monthly salary regardless of the amount of work he or she has completed. With outsourcing, you only pay for the work done.
Moreover, accounting is a time-consuming task and outsourcing it means you have more time to focus on things that drive sales and business growth. Outsourcing your F&A also means you have expertise, as well as advanced bookkeeping and accounting systems, on your side. If you hire in house, you will have to pay for training and new software on top of monthly salaries.
Most importantly, you enjoy a higher quality service. Since accounting outsourcing firms employ top talents and automation, they can help you avoid costly errors and ensure more work is done in less time.
Choosing an Accounting Outsourcing Firm
Getting the right contractor is crucial to making outsourcing work for your business. The most important factors to consider when hiring a contractor are the cost, customer service support and ease of use.
During the selection process, make sure to find out how long they have been in business, how many other clients they handle, what are their contract policies, how you can monitor your accounts, and so on.
Since finance is a critical part of running a successful business, you only want the best accounting outsourcing partner on board. This might take a few dollars off your back pocket now, but having a more efficient and functional F&A system with an expert team will more than pay for itself in the long run.