Are you a small or medium business owner?
Are you worried about accounting and bookkeeping?
Do you want to reduce the costs of accounting and bookkeeping services?
If you are nodding on the above questions, it is time to find a solution. Read on.
Most of the small and medium business owners are brought down by complicated financial structure and decreasing profits. The increased time and money spent on the management of accounting and bookkeeping reduces the overall profit margins and engulfs most of the critical business decisions.
It is because, without proper financial reports, which are generated through appropriate accounting and bookkeeping services, it is not possible to make significant business decisions. Additionally, if the owner is always stuck in the accounting and bookkeeping activities, it is hard for them to ensure a seamless flow of other activities.
The only way to solve this issue is, firstly, to reduce the costs of accounting and bookkeeping, and secondly, to utilize accounting and bookkeeping services for better execution, reduced mistakes, and reduced overheads.
So, let’s move forward and discuss both the aspects in detail.
Reducing Costs of Accounting Department
Reducing the costs of the accounting department is an essential activity for every business owner. We have already discussed that. But how can you achieve it?
Let’s find out. Dive in and start exploring how it is possible to reduce overheads related to accounting.
1. Organize Finances
The foundation of every business is having a workflow and staying organized. There is no denying this. Even organizations that harbor a flexible work environment have some rules for the organization of finances because it is simply unavoidable.
If you don’t have this structure, then your financials will be a mess, and we can’t say it subtly. This is because with lack of organization, your transactions will not match, your invoices will not be tracked, and your payment receipts will not be correctly recorded in the system. Everything will be haywire, and you will have no option to make it right.
Hence, execute it right from the starting.
For example, if your organization has made a purchase from the company account and you have received a receipt of the same, your bookkeeper should immediately record it. There is no point in delaying this task.
If you are still facing trouble organizing this activity, then talk to your bookkeeper or accountant, he will help you define the workflow. This will help you streamline the operation to a great extent.
The whole idea here is to have an organized method of recording finances. This will reduce your overheads by helping you eliminate the extra time spent on the calibration of accounts or management of lost receipts. Additionally, when you have a clear picture of your finances at all times, you can make better decisions. You would be automatically inclined towards reducing expenses that are not necessary. Without proper financials, this is not possible.
2. Enhanced Technology
Today, it is not possible to work without technology. But, it is dreadful that many organizations are still managing without proper technology support. Most of the accounts and bookkeepers utilize excel sheets, paperwork, and old methods to maintain finances. This is not the right way.
We have technology which can make this task easier and reduce human errors and, sometimes, eliminate it.
If you have automated receipt management, every transaction of the business will be recorded in the system, and there will be no errors. A document management system can help you reduce the mismanagement of paperwork as everything will be digitally stored. Everything will also be a click away as you would be able to access data online from anywhere.
All this reduces the number of hours spent by the manpower, which reduces the costs of manpower. You can allow your employees to focus on other activities as well.
Utilizing these systems can also help you to reduce manual errors, which costs a lot. Once these errors are eliminated from the system, you can reduce overheads.
3. Separate Financials
This is more of personal advice than cost-saving advice, but since it is linked to your cost savings, we will discuss it in detail.
Keep your finances separate. Do not include your financial transactions with the company’s commercial operation. This is because it is easier to handle personal finances, which you can do yourself as well. Even if not that, your accountant will be able to manage it without much hassle.
Business finances are different, and these are differently handled. If you merge the two, it becomes complicated for the accountant. You can reduce this complication and related time if you keep your finances separate.
4. Scaling Scope
Scaling scope is associated with the futuristic approach. Most of the small and medium organizations have to pay a significant amount of money only because they never think of the future.
When purchasing technology for accounting and bookkeeping services, finding the cheapest one may seem like the best choice. Stop right there because it is not!
Currently, it may be the right choice, but you are not thinking of the future. This standard of technology may not offer to scale at all. Then, you would have to spend on the setup once again, as your current technology is not flexible. So, always look for the technology which allows scaling as your manpower grows and financials become complicated.
Unless this technology is free, there is no point in spending on any software which is incapable of catering to your future scaling needs.
5. Use Accounting and Bookkeeping Services
The reason for putting this pointer, in the end, is that it is the most important. There is no better way of reducing costs than choosing accounting and bookkeeping services. All the above factors are either eliminated or managed by the accounting and bookkeeping services in India. You can only pay for the services you use and manage everything with the correct workflow.
Since this section is essential, we have explained it in detail below.
Before moving forward, let’s understand what is accounting and bookkeeping services in Pune.
Accounting and bookkeeping services simply mean that an outsourced team will manage every task related to bookkeeping and accounting. You don’t have to hire an employee or take care of their payroll. All you have to do is find the right accounting and bookkeeping services in India and allow them to execute the following tasks for you:
Account receivables and payable
Tax filings and calculations
Bank and credit card audits
1. Reduced Costs
The most apparent benefit of discussing this is reduced costs. When you utilize accounting and bookkeeping services, you don’t have to manage employees. All you have to do is coordinate with the provider. Hence, the cost of payroll, benefits, training, and management of employees is reduced.
You don’t have to offer paid vacations or take care of the health insurance of the employees. Your accounting and bookkeeping services in India will handle all that. You only have to pay for the services you acquire.
2. Expert Advice
It would be tough for a small or medium organization to include experts in the team. The cost is just too much. You can hire maybe one expert, but more than that is not possible. But, when you use accounting and bookkeeping services in Pune, you get access to expert professionals. This is because your accounting and bookkeeping services are expected to have experts on the team as they have to offer services to several businesses.
Thus, you can utilize this expertise anytime and take advice from these expert professionals. This advice will help you improve workflow, which will help you reduce overheads.
3. Reduced Stress
More than anything, accounting and bookkeeping services reduce your stress. For a non-finance person, financial reporting and management is a massive reason for anxiety and office stress. Due to this stress, things go wrong, and compliance penalties rush your way.
However, your accounting and bookkeeping services are acquainted with everything, and they know how to handle even the latest taxation rules. So, they will ensure everything is achieved without hassle, which will reduce your stress and eliminate non-compliance penalties.
4. Improved Security
When you manage accounting and bookkeeping in-house, it likely that you can suffer data breaches. But, when you use accounting and bookkeeping services in Pune, your provider ensures the security of your data. With accounting and bookkeeping services, it is even easier to reduce the unintentional theft that can happen in-house. For example, an employee allowing an outsider to enter the premises of the office, which can lead to virus attacks on every system.
In cases like these, accounting and bookkeeping services are beneficial because they have a defined security structure and strict policy for management.
It is possible to reduce the cost of accounting and bookkeeping through proper management. However, for that, you have to select the right provider and ensure that they have the right security structure. Without proper setup, your accounting and bookkeeping services would not be able to offer you any value. So, evaluate the above factors and then make a decision.
Paysqaure offers accounting and bookkeeping services at a cost-effective range. With our expert team and years of expertise in the field, we can help more than 1000 clients manage their accounting and bookkeeping activities.