It is very important for every company to have reliable Accounting and Book- Keeping systems with proper checks and controls. A company cannot take correct financial decisions without correct Accounting and bookkeeping system in place.
As the company grows and matures, its financial tasks increases and the need to outsource other tasks also increase. Accounting and book keeping being among those tasks are most commonly outsourced.
Here are five reasons why you should consider outsourcing accounting and book keeping.
1. Improving focus:
By outsourcing financial activities, Management gets quality time to focus on core business functions to grow the overall business. As the resources are limited in case of small and medium sized businesses, they benefit more from outsourcing accounting functions.
Outsourcing helps in getting best financial services from the people who are trained professionals and whose sole focus is accounting as their core and only function is accounting and book keeping.
3. Cost effective:
Outsourcing accounting and book keeping prevents company from hiring new employees for this work which in turn saves the cost of salary, software applications and providing them with a working space. Cost of outsourcing turns out to be less than the cost of hiring new employees.
As the business undergoes change, it may need to throttle the accounting and book keeping activities. Using a third party provider makes it possible to easily manage (increase or decrease) these services by simply telling the service provider of the changes required.
5. Better technology:
Third party service providers have these outsourced services as their core activity, having all the latest updated software for this purpose. Whereas the companies having other core functions do not understand or have access to such latest technology.
Having discussed the reasons as to why a company should choose accounts outsourcing, a company should also know whenis it the right time to opt for accounts outsourcing services?
When to Opt for Accounts Outsourcing?
1. Beginning of Fiscal Year
The beginning of business’ financial year is considered quite a right time for considering finance and accounting outsourcing as there is no backed accounting work left and third party can start performing its services from starting with new rules and policies of its own.
2. End of Fiscal Year
On the contrary, when the business is having troubles in closing its books of accounts or is unable to correct some of the missteps from the current year, opting for accounts outsourcing services at the end of financial year, hence, can prove to be solving such problems.
3. Before Filing of Taxes:
For filing correct taxes, it is necessary to have accounting work on track. For that a team having full knowledge of accounting terms and policies is required so that there are no errors left in accounts before filing of taxes. Hence, having your accounts outsourced before filing of taxes is considered beneficial for the business as they have full knowledge of doing the same.