Cost/Benefit of Hiring an Experienced, Outsourced Accountant

Many SMEs, start-ups, and entrepreneurs find it hard to hire experienced in-house accounting personnel, especially with the right skill sets. This includes preparing financial statements, analyzing financial data, managing bank operations, and preparing outgoing invoices. It is even more challenging to find a qualified and seasoned accountant at an affordable rate. Many small companies that outsource their financials do not feel comfortable or competent enough to do it on their own. There is a common belief that bookkeeping should be done internally. However, a business must consider its own skillset and whether it has the necessary experience to perform the operations. This makes it necessary for a company to outsource services to a service provider with more qualifications, knowledge and expertise. Outsourced accounting services refers to hiring anoutside service provider to perform the financial operations of your business. The scope of services may vary depending on the software used and the provider you choose. You also get an opportunity to decide which services you keep in-house, which ones you outsource, and the results you expect to receive.

Here are the Benefits

Cost Effective

When you outsource, you only pay for the services you need when you need them. Contrary to popular opinion that you add unnecessary cost to the business when you outsource, it is quite the opposite. When you outsource, you get the chance to reduce your expenses without compromising quality. You and your company personnel save time and money you would have otherwise used to recruit and train new employees. When you outsource, you get experts who already have adequate experience and qualifications. Additionally, it relieves you from salary, insurance, payroll taxes, time off, and many other expenses that come with having a full-time employee. The cost savings you get when outsourcing are considerable as many firms offer their service at lower cost rates. These firms can accommodate your cash flow realities and organization risk gaps to make sure it’s a worthy investment. You can choose co-sourcing, full-outsourcing, or specialized resource enhancement when you have a shortage of staff. It gives you flexibility as you can upsize or downsize your accounting needs without the usual employee challenges such as the need for new hire healthcare packages. You also don’t have to worry about employee turnover or carrying costs as the firm manages the relationships between the business and the experts. [1]

Accessing Expert Advice

Teaming up with a firm boosts your confidence that your finances are being handled by qualified people in an objective and unbiased manner. You get access to qualified accountants that would otherwise be hard to find and expensive to hire. This will ensure that your books are always up-to-date and you don’t have to worry about underpayments or inaccurate paperwork. These firms have to improve their skills and qualifications on a regular basis to stay ahead of the competition. Having a group of these experts in your company will be of great value since they can share new trends, tools and solutions. They also continually participate in extensive training courses. This means that your company will be in the hands of experts that are knowledgeable and reliable. [2]

Scalability

Many SMEs lack adequate workload to justify the cost of hiring a full-time accountant or bookkeeper. When you outsource, you get to pay professionals only for the time they use and have them only when needed, as long as needed. This means that you can have accountant services regularly; pre-determined or budgeted hours over a week or month, a CFO or analyst when you want to focus on profitability when fundraising, or when you have challenges with cash management. This benefits you so you can easily and efficiently scale down when you don’t have substantial business operations and save money. You can also readily get expert help when your operations increase. This is especially true for seasonal businesses that require a lot of extra help during the peak season. As a small business grows over time, it has confidence knowing that it will have a team of outsourced accountants to help with the business needs. [3]

Saving Time

When you outsource, you get to focus your energy, resources and time on other business aspects. You also get the freedom to work on the future of the business. You also get to eliminate downtime. When an in-house bookkeeper or controller goes on vacation or is sick, you lose the financial expert’s support the business needs. When you outsource, when one expert is out, they get replaced with another who takes care of your financial accounts and reports. Having a team of experts handling your financials ensures that operations are tailored to produce higher quality outcomes. This usually includes powerful analytics that gives you a better understanding of the business performance and any budgeting concerns. This helps to improve productivity in the business and reduces the likelihood of government penalties. [3]

Reduce Risk

Most small businesses suffer theft under the hands of their trusted employees. Enforcing strong checks and balances in a company may make the employees feel distrusted and lower their morale. When you outsource, you get a third- party to audit your finances. This reduces the risk of fraud and theft by having unbiased checks and balances. The firms you outsource to are usually up-to-date with the latest regulatory requirements. They are well aware of everything happening across the industry and monitor closely relevant laws and new regulations to remain updated on processes. This reduces the risk of not meeting compliance requirements. [4]

Automation Technologies

Most firms utilize accounting automation software in their daily operations. This helps to save time and reduces risks. It also minimizes human error and accountants have access to real-time reports. They are able to spot potential issues and resolve them in an early stage. You also get to reduce the possibility of internal fraud. Most experts are highly qualified in automation tools such as Sage, Xero, QuickBooks, Visma, SAP, Microsoft Dynamics, and many more. A controller that is using Excel sheets will end up consuming a lot of time and money. You also get to eliminate the hassle of regular software updates and keeping up with new technology. Experts use state-of-the-art software to support your business and provide experience and skills on how to use the software and its benefits. [5] Automation in the workplace helps to decrease your carbon footprint and reduce wasted paper. It also helps to save on space in the workplace. When you store your financial information electronically, you use less paper and storage space. You will end up saving money on paper and toner costs and maintenance costs on printers, and copiers. When you use less paper, your workplace is more organized, and you save time on filing and storing hard copies.

Confidence and Peace of Mind

When you outsource to an experienced and seasoned financial firm, you get peace of mind as you know your financials are protected, secured, adequately reported, and free from fraudulent activity. You will get timely and accurate records that will help you make informed decisions. [6] Partnering with a group of experts will make your business plans more effective and strategic. Keystone Advanced Solutions provides experienced professionals with a diverse finance background in finance and accounting. Our services include exec-level accounting &finance and subscription-based bookkeeping. Contact us today for a free consultation and learn more on how your business can benefit from our services.