Outsourcing has taken the business world by storm. It might come as a surprise to many that outsourcing is not a new concept and has been in practice since the 1970s. Business outsources various processes to experts to help manage the business better and concentrate more on primary activities. Among all the business process, accounting and bookkeeping is one such vital function which is outsourced.
While accounting and bookkeeping function is an integral part of all organisations however it requires an expert’s assistance. Conducting the same without professional help can be fatal for business operations. While there is the option of hiring dedicated employees but hiring a reputed outsourced accounting service provider can help you in various ways. Also, outsourcing is not limited to any particular industry, and you can outsource accounting & bookkeeping service irrespective of the industry that your business belongs, just ensure to hire a firm who have prior experience in the same industry.
Now let us discuss some interesting facts related to accounting and bookkeeping outsourcing –
- Finance and accounting outsourcing is projected at US$51.5 Billion by 2026.
- Outsourcing helps to get access to expert accountants and bookkeepers all over the globe. Outsourcing is not limited by any geographical border; you can outsource your task to individuals and firms located in a different country. This phenomenon is called offshoring, and it has many benefits.
- India is the most preferred choice for offshoring and outsourcing, especially for English language operations. Few other preferred countries for offshoring are Malaysia, China, the Philippines, and so on.
- Outsourcing accounting and bookkeeping assist businesses in focusing more on the core business activity. One may ask how? Because of the complexity of the task of accounting and bookkeeping, it takes up a lot of management’s time and efforts. Having not to worry about it will provide the management with more time and allow them to focus on what matters.
- With outsourced accounting and bookkeeping service providers, businesses save up to 60% overhead costs along with the capital cost, which otherwise would be invested in the infrastructure of the accounting department.
- Outsourced accounting and bookkeeping service providers make prompt use of advanced cloud accounting software which makes your financial information easily available to you all the time.
- You can reduce your paper load to an extreme extent and make financial reporting or accessing financial information stress-free without rummaging through the mountains of paperwork.
- Accounting and bookkeeping outsourcing will make you take the right advantage of automation that will help reduce the time invested in recording and reconciliation.
- With accounting and bookkeeping outsourcing, you can have access to your financial reports as and when required making it easier to take a strategic financial decision without the need to wait for yearly statements.
- You can also eliminate possible internal fraudulence, which is generally caused when there are fewer employees in the accounts department.
- Outsourced accounting and bookkeeping service providers are always up-to-date with any changes in new laws and legislation, making it easier for your business to adapt to these changes and stay compliant with updated rules and regulations.
- With the kind of experience, your outsourced accounting and bookkeeping service providers have, you will get the advantage of accurate budgeting and forecasting. This will help you to prepare for any shortcomings.
- Accounting and bookkeeping outsourcing has helped many organisations to increase capability and capacity to achieve global expansion.
- One primary reason why most companies do not outsource is because of confidentiality issues. Financial information is sensitive, and because of this, companies are hesitant to outsource their accounting and bookkeeping functions.
Accounting & bookkeeping is one of the most outsourced functions for businesses. In fact, even CPAs outsource their accounting and bookkeeping work. It helps them serve their clients better and helps them to expand the number of services they offer. If you are not outsourcing your accounting & bookkeeping function yet, now is the time you outsource it. If you are worried about confidentiality like many other businesses, a detailed agreement and NDA will help ease this worry for you.