The benefits of outsourcing certain parts of the business are becoming more popular in different parts of the world. This is why a lot of big companies have been outsourcing different parts of their businesses. This is not to say that doing things yourself does not have its own benefits.
It is necessary to do a due diligence to find out which part of your business should be outsourced and which part should be handled by you. Accounting service is one area of your business that you should outsource for profitability. It is a wonderful business plan to outsource your accounting services to third party accountants and auditors for the reasons below.
The most important reason you should outsource your accounting services is ability to attract investors. Sometimes when you need partners or investors and you publicize your financial records, some investors may still believe that there may be some manipulations of figures as a lot of companies usually cook the book to attract investors. But when a third party team of chartered certified accountants announces your financial standing, there will be a lot of credibility. Needless to say more credibility means more investors and more funds.
Accounting is about the most difficult and time consuming part of every business. So, if you outsource your accounting services to third party qualified accountants, you will free up a lot of more time that will be dissipated into your core business activities. This means more productivity for your business. More productivity will definitely lead to improved turnaround time and bigger bottom line.
Accounting usually covers a whole department. So, when you outsource the activities of a whole department, it helps you work with less staff. You will pay less in terms of allowances, wages and salaries. It is also necessary to point out the fact that qualified accountants are one of the highest paid professionals all around the world. Whether he call in sick or not, his pay has to be complete if you hire an in-house, full time accountant.
Small and medium enterprises may not be able to afford the services of highly qualified accountants. But they can enjoy their services when they outsource their accounting activities. This is because third party accounting service providers usually hire the best and most experienced accountants.
The most important asset of any company is its financial record. Outsourcing your accounting services will leave your database in the hands of the third party accountants. So if your office gets destroyed by flood or fire, your records are safe in a remote location. You may just lose copies of the database.
In conclusion, it is much cheaper to pay a monthly fee than hire a couple of in-house qualified accountants on a full time basis. Outsourcing allows you to pay for only the services you enjoy.