Accounting Outsourcing – 7 Benefits Other Than Cost Reductions
Outsourced accounting and outsourced bookkeeping has become a vast practice for small and medium sized enterprises. This is particularly beneficial for businesses in Europe and America to outsource accounting and bookkeeping to offshore locations. By this way they can save accounting costs. Generally businesses who hire virtual accountants save their accounting costs up to 50%. However it would be unjust to view outsourced accounting with a view of cost reduction only. There are also many other benefits other than cost reduction, which may become useful reasons to outsource accounting department.
Here we shall analyse benefits of accounting outsourcing other than cost reductions.
1. Focus on core activities
This is probably most talked about, but most important reason of why you should outsource accounting. It is much publicized but it should not be underestimated. You just imagine that all your time is focused on developing your business, and you don’t need to bother about things you don’t know, or for whom you don’t have time. This gives you more mental relaxation, so you are in a better position to innovate in your core activities and make better business decisions.
2. Reduced administrative burdens (employee issues)
By accounting outsourcing you are now no in worries of employee related issues. This is another great benefit. You don’t have to interview potential employees to find a suitable one, you don’t need to make a succession plan, you don’t need to devise retention plans, you don’t have to continuously invest in employees work descriptions, and you are not worried about filing various forms to government authorities relating to employees, just because your outsourced service providers are firms/companies which are providing your services and the persons who are providing your services are THEIR employees, not YOURS.
3. Expert services
You believe it or not, outsourced bookkeepers give you much expert and professional service that your in-house bookkeepers. the main reason for this is, your in-house bookkeepers are at a secure position, they don’t face any direct competition, however outsourced bookkeeping firm is all times facing fierce competition, so they have to continuously maintain their competitive edge to stay in business.
4. Less paper work
This doesn’t only indicate towards cost saving, but also you are fulfilling your corporate social responsibility by saving paper. Outsourcing accounting means more work will be computerised, so you are contributing in saving paper. This is in the benefit of overall economy. Outsourced bookkeeping reduces paper work because they don’t report you each time in printed format, rather they always communicate, report and do work online.
5. Better use of office space
Is this not a good idea? By outsourcing accounting and bookkeeping your existing accounts department would, of course, be not needed, so you can use these rooms for more revenue generation. you may either enhance your production capacity or provide an additional room for customer services. Or at least, you can save rent costs.
6. More employee motivation
Your production, customer services and sales staff would be more motivated and productive if you outsource your accounting department. This is because there won’t be any disputes between accounts department and other departments. Also All other employees would be more satisfied that their salaries, overtimes and accounts are maintained by more professional firms rather than few in-house bookkeepers, so there will be increased transparency, leading to employee motivation.
7. Less year end issues
Your outsourced bookkeeper wont delay any data entry or journal transactions till year end. They complete the work on day-to-day basis. So There won’t be any need for over-times at year-end, nor there will be any issues or pending work. This would make your year-end filing and annual audits more convenient and smooth.
Mr. Sam V. is a revolutionary writer on outsourced bookkeeping and outsourced accounting services. Currently he is working with Businessvein, which is one of the distinguished low-cost and quality outsourced bookkeeping services providers.
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