When people start their own business, they usually remain quite a lot excited and full of energy. The level of enthusiasm goes through the rooftop. Once their business starts growing, the pressure to manage a lot of things also starts building up. Among the many aspects, they need to handle, managing the accounts and finance-related tasks is one of the most difficult ones perhaps.
It takes a lot of time to maintain a hundred percent accuracy in this area. Setting up a new accounting team can be equally challenging, particularly in today’s COVID world, where most of the companies are struggling with their finances. This is where the role of bookkeeping and accounting outsourcing services comes into play.
However, there are still many people who think it’s better to let your in-house accounting team handle all the work. But, most of them realize their mistakes in the later stages. So, if you too are skeptical about outsourcing bookkeeping and accounting related tasks, here are a few reasons why you should. Let’s take a look at them.
Why Outsource Bookkeeping?
- Time is money- outsourcing helps save a lot of time!
For any kind of business, time is one of the most valuable resources. No matter if you are sitting at the top management level of a company, or managing its financial records, in any case, you should focus on how to perform the same task in a lesser amount of time. Deciding to opt for outsource bookkeeping services India can save you from the hassles of spending time on your accounts’ team. You do not have to worry about any kind of inaccuracy in the financial records.
Rather than spending time on maintaining your accounts, it’s better to hire a service provider and focus your energy on the growth of your business. Moreover, in these turbulent times of COVID-19, your company’s HR doesn’t have to worry about hiring full-time accountants.
The reliability of Accounting & Bookkeeping Services
If you do not have an in-depth understanding of accounting, you won’t be able to maintain a good record of your finances. Even if you hire a fresh accountant, he/she will never be able to match up to the skills of an experienced bookkeeping and accounting expert. Dedicated professionals are always better when it comes to quality work. Handling the payrolls isn’t a simple task of course. Only an expert can carry out the payroll related tasks with thorough accuracy without spending too much time as well. So, for a reliable outcome, you must always hire the best provider of payroll services.
Reduction in the expenses
For the small and midsized companies, it is always a struggle to find out the feasible cost-cutting methods. They always try to cut down unnecessary expenses. Now, when it comes to having your own in-house accounting and payroll department, you have to hire a few full-time employees. Rather than hiring an accountant in today’s COVID situation and putting more stress on your company’s finances, it is wise to outsource accounting services.
Companies that offer Finance and accounting service are quite capable of handling business accounts of any size. They can also take care of bookkeeping and payroll. In short, it is one of the best decisions you can take to reduce your company’s expenses and stay afloat in these tough situations.
Outsourced accounting and bookkeeping services lead to flexibility
If you spend a little time understanding this market, you will find that there are many outsourcing companies ready to offer you a wide range of flexible solutions. Bookkeeping and accounting outsourcing services can be availed as per your convenience. It isn’t like hiring full-time accountants. You can sign up for their services anytime as per your company’s needs.
If you aren’t satisfied with their services, you can easily switch to some other service provider, which is not quite easy when you have an in-house accounting department. The current pandemic is forcing companies to think about outsourcing their accounting and bookkeeping related work to these service providers.
The safety & security of your company’s data matters!
For any company, the safety and security of its accounts related data matter a lot. No company would ever want to compromise with the privacy of its financial records. In the COVID-19 world, when most of the employees are working from home, companies are somewhat worried that their records’ security might get compromised. Plus, it is also not feasible for the accountants to carry out each and every task from their home. It is where the hiring of accounting and booking service providers comes into play.
It is one of the major advantages of outsourcing bookkeeping services in today’s times. The top service providers maintain thorough confidentiality, which is not quite possible for a local bookkeeper. When you outsource the tasks to a virtual bookkeeping service provider that showcase strong client reference, you will have complete peace of mind. You can always be in touch with them.
So, those are the five major reasons why outsourcing Bookkeeping and accounting makes so much sense, particularly during the Covid-19 world. The safety of your company’s data matters the most, and therefore you should never compromise with the same. Now, let us help you understand a little how this entire thing works.
How does outsourced bookkeeping works?
The process that is usually followed is easy to understand for anyone. These are the major steps that are involved:
- First of all, to the outsourcing firm you have hired, you have to give access to your company’s financial data, such as credit card statements, bank statements, tax documents, payroll, online bill payments, receipts, etc. Basically, anything related to your business’s finances needs to be shared.
- In case your processes are not digital yet, the outsourcing firm will carry out the transition process. The best-outsourced bookkeeping services make sure to complete this transition minus any hiccups so that your company’s processes aren’t affected. The benefit of the digital format is that every single change that happens in your business will leave a trail behind.
- In the third step, mutual expectations have to be set between you and the bookkeeper. In this step, you have to decide if you want the service provider’s bookkeeper to work for your company every day. You also have to decide on the kind of info you would want him/her to share at the end of every month. Likewise, the frequency of communication also needs to be decided.
- It’s important to create a clear and efficient process. To make this happen, a proper communication channel should be decided. For example, the use of licensed software and Google Docs can make the process more streamlined.
More or less, this is how the entire process works. Communication is always the key, and for that reason, you must always remain in touch with the provider of Bookkeeping and accounting outsourcing services.
Benefits of outsourced bookkeeping
Although there are many advantages of outsourcing your company’s bookkeeping requirements, the COVID-19 situation has basically concentrated the focus on these two major benefits- doing away with the cost of hiring and automation technologies. Once you outsource accounting services, you no more have to worry about hiring new employees for the related tasks, or even thinking about retaining the existing ones.
One of the main reasons or rather the benefits of outsourced bookkeeping is that it helps increase the efficiency of the overall business. Since you do not have to worry much about the bookkeeping, you can focus on the activities that will help you in expanding the business and its overall growth.
When you hire for an outsourcing and bookkeeping firm then you have to spend less time on bookkeeping and more time will be available for clients. More value can be provided to the clients by improving your services. This will help you gain happy clients who would want to stick around with your company for a long time and in turn receive customer referrals.
An outsourced bookkeeper with the proper training and merit can save you the consequences of bookkeeping mistakes. A business owner is not a trained bookkeeper hence it takes a massive amount of time to get the job done and he/she will be prone to mistakes. A professional in that case will help avoid all of this because mistakes in bookkeeping can lead to investigations, penalties, and cash flow problems. A trained outsourced bookkeeper will be more precise and accurate and get the job done in an easier way with lesser problems.
The modern bookkeeping companies do not utilize traditional pen and paper methods. They have now switched to digital methods and by making use of online portals thus streamlining the process. This leads to a lot of new capabilities. The functionality of the portal will vary based on the price packages and since it’s based in the cloud the bookkeeping company along with your own company can access it at any given point of time.
When you hire for outsourcing and bookkeeping services then you have to pay only for the job done; you are not required to pay for the payroll taxes, vacations, overheads, sick leave, or training. There isn’t much time wasted on training and there are no additional costs involved in hiring a new team member.
When a buyer is interested in purchasing a firm, he/she will first make sure to evaluate the profit factor of the firm. Outsourcing bookkeeping helps make the firm more profit worthy than those ones which have not hired outsourcing services. It increases the overall worth and value of the company. When you are raising the borrowed capital it will help with a higher valuation and will lead to you acquiring much better terms and save you a lot of money.
In a time where companies are being forced to lay off hundreds and hundreds of employees, the option of bookkeeping and accounting outsourcing services is definitely proving a sign of hope for the companies that are struggling. In short, these services can take away a lot of stress from your company’s finances. So, get in touch with a reliable bookkeeping and accounting outsourcing firm and avail their services right now!