7 Benefits of Outsourcing Accounting and Bookkeeping Services

Accounting and bookkeeping are the strong foundation of the finances of any business. These are also time-consuming complex areas that require expertise and continuous up-gradation of the knowledge.

Small businesses, budding entrepreneurs, and start-ups find it very challenging to hire an accountant. Especially one with the right skills and knowledge who can prepare financial statements, manage bank accounts and analyze financial data, and other accounting responsibilities. Additionally, there is also a financial constraint for hiring a person at affordable rates.

Thus, many small businesses are outsourcing accounting and bookkeeping services. They don’t feel comfortable doing it on their own either they lack expertise or skill or focus mainly on core business activities.

If you are thinking about why and how outsourcing accounting services is one of the most explored options.

Then, here are some benefits of outsourcing accounting and bookkeeping services:

1. Affordable Accounting Services:

Many businesses believe outsourcing is an additional expense and often regard it as an unnecessary expense. But it is exactly the opposite. Outsourcing helps to save time and cost without comprising the quality of work.

Outsourcing firms like Meru Accounting provide access to a professionally qualified and experienced team to handle bookkeeping and accounting services at a pocket-friendly price.

Outsourcing helps to save money spent on salaries, taxes, office supplies, and other benefits provided to full-time or part-time employees. It lets you pay only for productive hours of work.

2. Professional expert accountants and bookkeepers:

Outsourcing offers you options to hire a professional with a high level of expertise and experience at affordable rates.

Professional experts at outsourcing firms continuously improve their skills and knowledge to stay competitive in their field. They have extensive access to training, courses, and new accounting skills.

Outsourcing to an accounting firm provides you access to a dedicated team of accountants. For example, at Meru Accounting we have CAs, CPAs, and accountants at your services.

3. Scalability:

Outsourcing provides you to scale your work according to your requirements. The accounting and bookkeeping services provide an option to scale your services. Suppose if bookkeeping and accounting tasks require extra work force you don’t have to run through the whole rigorous recruitment process.

Moreover, accounting and bookkeeping services charge on an hourly basis. Thus this means you can scale up and scale down according to the client’s requirement.

4. Automation:

Many businesses are now using cloud accounting software to save time. Cloud software not only helps to save time but also reduces human risks by automating routine tasks. It helps in minimizing human errors and also provided remote access to business information. It helps in detecting any possibility of internal fraud.

Most professional accounting and bookkeeping service providers are highly competent in using automation tools such as Xero, QuickBooks, SAP, and much more.

5. Saves time and cost of hiring processes:

Recruitment is a rigorous and time-consuming process. Additionally, it demands-resources to manage and create a whole recruitment team for selecting the right candidate. It takes your time and cost in training the new hire. Thus outsourcing is a win-win situation in these cases.

6. Look beyond accounting:

A professional accounting service firm provides necessary advice on how to make accounting more efficient. It also helps you with consulting and advisory functions. Whether it’s taxation, accounting software, or financial advice.

7. More profits:

With the proper and accurate book of accounts, you have a fair and realistic view of the financial position of the business. Thus you can find ways to generate more profits and look for potential growth. On top of it, you don’t have to worry about compliances when you have an outsourcing partner like us.

FAQs

1. Why do firms choose to outsource accounts?
   Firms find it tough to hire staff with the right skills. Outsourcing work gives them professional help at a low cost and lets them focus on growth.
2. How does outsourcing work to cut costs for a firm?
   Outsourcing work avoids fixed staff pay, coach time, and tool costs. Firms pay just for the work they need, which helps keep spending low and cash flow safe.
3. Can outsourcing improve the accuracy of financial records?
   Yes, Outsourced teams use proven skills and cloud tools to keep records correct. They also track tax rules and file on time, which lowers the risk of errors.
4. Does outsourcing support business growth and scale?
   Yes, Services can expand or reduce based on needs. When work grows, the provider adds staff hours. When work slows, the firm scales back with ease.
5. What tools do outsource teams use?
   Most use cloud tools like Xero or QuickBooks. These give live view, save time, and guard data from loss or fraud.

6. Can outsourcing free up time for business owners and teams?
   Yes. Owners spend less time on daily accounts and more time on sales, service, and client care. It also removes the stress of payroll and tax tasks.
7. Will the business still control its financial data?
   Yes, the business keeps full control of all records. The provider only manages tasks agreed upon, while the firm reviews reports and approves key steps.