Outsourcing is a common practice these days where certain business processes are entrusted to outside sources. Payroll and inventory management are common areas for outsourcing, but it can theoretically be done with most any department. There are pros and cons of the practice for any business, but many are deciding that the benefits outweigh the negatives. Two big advantages of outsourcing are being able to pull from a bigger talent pool and cutting down on the need to hire more employees. Then, of course, there’s the big one—lower labor costs. Having access to global talent makes it much easier to find the best help for the best price.
While it’s somewhat easy to see how departments like call centers can be outsourced effectively, it can seem a stranger choice at first glance for more complex departments. Accounting is a good example of this. This is one of the most crucial parts of a business, so it may be harder to see how it can be entrusted to another source. The truth, however, is that outsourced accounting firms offer plenty of benefits to businesses.
Pay for what you need
Reduced costs are one of the biggest motivators for outsourcing, and accounting is no different. With an outsourced accounting firm, you aren’t constantly paying employees or having to worry about benefit packages, leaves, or insurance policies. You’re simply paying for accounting assistance when you actually need it. This keeps your business more efficient and lets you focus on other matters.
Grow your business
Outsourcing departments generally allows you to focus on your core business. This is especially true of a complex one like accounting. Large outsourcing companies have the ability to handle complicated tasks easier than smaller businesses in particular. Outsourcing can be the key to turning your small business into a real power player with faster growth and higher profitability.
Outsourcing your accounting department frees up room for other activities as well as decreasing overhead. An outsourcing company can also start work on new projects faster than an in-house approach, and freeing up more staff is always beneficial to your business as more work becomes available.
Outsourcing companies are specialists in the services they offer, so you can always be confident that you’ll receive expert assistance and advice whenever necessary. They’re also likely to be more trustworthy than candidates you could hire locally, as they’re always up to date with new laws and compliance requirements.
They’ll also be up to date on the latest technology and trends, so you can rest easy knowing you have the most state of the art options working for you. With the best staff and the best technology on your side, outsourcing becomes hard to say “no” to.
Around the clock service
When dealing with traditional in-house employees, work will only be done during normal hours of operation. This limitation isn’t so with outsourcing. You have the potential for a unique time zone advantage with outsourced companies. If they operate in a different time zone than your business, as they often do, then you can have accounting services done even while your business is closed. This, naturally, goes for any other outsourced departments, as well.
This can improve the services you offer. Outsourcing companies deliver quickly, and with their decreased lead time, they can get products and services ready for the customer faster than you would be able to on your own.
Outsourcing any department is typically valuable in the long run, but outsourcing your accounting saves a great deal of stress and time that can be spent in more productive areas. You’ll be secure knowing your books are being kept with utmost attention to detail and unnecessary costs are being cut wherever possible.