Keeping costs and benefits in balance at every step is a challenge for accounting firms in today’s competitive environment. Owners of businesses have realized managing all operations in-house doesn’t lead to cost efficiency or productivity improvements. In addition to managing day-to-day tasks, paying bills, supervising operations, it is impossible to manage bookkeeping and tax preparation effectively.
That’s when outsourced bookkeeping service comes into play.
Keeping books is a critical function of any accounting firm, but it is time-consuming, monotonous, and cumbersome to handle in-house. Delegating bookkeeping tasks to third-party providers is always preferable to burdening your staff with them.
As a result of this practice, massive cost savings can be achieved and many strategic advantages can be gained to facilitate growth and expansion. If you are a small firm owner considering outsourcing bookkeeping, here are the top 10 benefits:
- LOWER OPERATIONAL COSTS, INCREASED NET PROFIT MARGINS
This is the main reason why outsourced bookkeeping is so popular. Due to the specialized nature of accounting and bookkeeping, such tasks generally cannot be performed by a layperson. In contrast, outsourcing bookkeeping gives you access to highly qualified professionals without rigorous recruitment processes and saves you up to 50%. Additionally, there are no training costs, holiday covers, sick leave, etc., that you need to worry about. The work is only paid for when the costs are reduced substantially.
- SAVE TIME & MINIMIZE PAPERWORK
Your team members are exhausted by logging, analyzing, and reconciling records. A major advantage of outsourced bookkeeping services is that you can spend more time on growth-oriented activities.A major advantage of outsourced bookkeeping services is that you can spend more time on growth-oriented activities.
Your firm can grow faster if you outsource your time-consuming bookkeeping tasks. You will have more time to attract more clients, evaluate processes, and expand your service offerings. The elimination of this compliance task will also allow you to eliminate the physical labor and get everything done online.
- ACHIEVING ERROR FREE RESULTS
If you hire an in-house bookkeeper, you are more likely to accept specific margin errors in the beginning, allowing them some buffer time to settle in. This adjustment period is not necessary with outsourced bookkeeping. Outsourcing, accounting, and bookkeeping help alleviate this challenge by allowing maximum efficiency from the very start.
A bookkeeping service provider will not only provide you with one bookkeeper but will provide a team of trained professionals who can handle the most complicated bookkeeping tasks. The system is automated, which increases transparency, makes everything seamless, and works under expert oversight to fix any issues that may arise.
- ACCESS A ROBUST CLOUD-BASED BOOKKEEPING SYSTEM
Online interfaces are used by the best outsourcing companies, which help streamline processes. Using a cloud-based system, you can access your data from anywhere and at any time. Your expenses and income can be added quickly and efficiently using this collaborative tool.
In addition to helping keep things organized, this data-centralized system also helps lay the foundation for a structured tax preparation system, allowing your accounting firm to remain compliant.
- FULL-SERVICE BOOKKEEPING AND ACCOUNTING
Keeping books and tracking expenses is just part of what a bookkeeper does. Learning more about outsourcing, accounting, and bookkeeping will reveal that it’s only the tip of the iceberg. Understanding the value of bookkeepers and realizing their potential will reap many benefits for your firm. As well as saving time, it offers strategic benefits as well. Taking care of bookkeeping tasks can now be delegated to your accountants, who can focus on improving client engagement.
- ACCESS TO DETAILED FINANCIAL REPORTS
The financial insights and information that come along with outsourcing bookkeeping are one of the benefits. In a few clicks, you have access to all your clients’ financial reports, allowing you to dig deep and make informed decisions. Profits & losses, balance sheets, and cash flow history can all be viewed.
The bookkeepers’ defined and structured methods of recording information make going through the reports very simple and quick. In the future, stakeholders can easily access this information without having to change or simplify anything.
- MAKE SMARTER & MORE INFORMED DECISIONS
The best strategic decisions are driven by insights and instincts – but having the numbers on your side is an added advantage. Having a better understanding of your firm’s financials will allow you to make more informed decisions and achieve better results. Your clients can gain better insight into where to invest more by using the platforms that outsourced bookkeeping professionals use. As a result, you can focus on more profitable revenue sources and reduce the ones that are less profitable.
- PREPARE FOR TAX SEASON WITH MINIMUM EXTRA EFFORT
There is usually a lot of stress during tax season. By having a well-organized bookkeeping system, you lay the groundwork for a productive tax season without unnecessary stress.
The services of an outsourced bookkeeper can maximize the potential of your bookkeeping services and prevent you from having to scramble before tax season begins. As a result, your in-house professional will be able to focus on other tasks during tax season. As a result, they are able to file tax returns efficiently, accurately, and conveniently when the time comes.
- SCALABILITY THAT ENABLES YOU TO GROW
It’s impossible for accounting firms to have a consistent flow of income throughout the year, so they don’t get the right balance between bookkeeping tasks and resources. You can avoid this problem by outsourcing.
The scalability of outsourcing, accounting, and bookkeeping is one of the best benefits. Hiring an offshore partner allows you to scale using a variety of engagement models, including full-time, block-of-hours, and pay-per-use. Accountants can choose the option that best fits your needs depending on the volume of work. When the workload is slow, you can slim down the outsourcing team, and when it’s busier, you can scale up the team. Moreover, you won’t have to worry about holiday covers, maternity leaves, or other recruitment costs.
- MORE FOCUS & BETTER GUIDANCE
You can focus more on growth-centric opportunities with an outsourced bookkeeping team instead of managing internal compliance processes. The offshore team helps you maintain ‘client books’ seamlessly, while the management can focus on growing the practice. In addition to managing bookkeeping, the outsourcing experts will also provide accounting guidance. Taking your business to the next level can be highly beneficial with their insights.
Start Your Outsourcing Journey Today
This concludes our list of the top 10 reasons to outsource bookkeeping. We hope this article will help you make an informed decision about outsourcing your accounting firm. An accountant must choose the right outsourcing firm to reap all the benefits mentioned above.