Outsourced accounting and bookkeeping service is a really good idea that has turned into a typical answer for a lot of organizations today. The firm can now be in line with its vision and focus on increasing its productivity, improving the quality of the goods and services and increasing the profits while a third party deals with the tedious tasks of accounting and bookkeeping for it.
Often there is a struggle – whether to hire outsourced accounting and bookkeeping services in India or not?
Well, here are some pros and cons of outsourced accounting and bookkeeping services which one can keep in mind while making a crucial decision.
Listing out a few pros of outsourcing such services as:
#Leads to Financial Savings
Outsourced accounting and bookkeeping is always a cheaper option than hiring an in-house staff to handle the finance section. It leads to a reduction of several attributed overhead costs such as vacation, retirement, sick days, etc. Additionally, it provides the expertise and skills of an entire team of people rather than just one single person.
Even a small business includes a lot of activities and it is not possible to carry out each and every one of them within a given time frame with the same efficiency. Outsourced accounting and bookkeeping services can help save a lot of time which can then be utilised to focus on other important activities as well.
Due to outsourcing, any fraud in the accounts of the company can be easily caught, as opposed to when it is committed by an internal employee. Also, it actually reduces the risk of fraud being committed as the responsibility lies with a third party.
#More Experienced Guidance
A great benefit of outsourced accounting and bookkeeping services to a firm is that they specialize in the work they do. This makes them more a reliable and responsible support than an internal staff. They have a lot of experience and possess the capability to deal with any issue that may arise during their term of service. They ensure quality and expert services as only highly skilled workers are appointed for the task.
#Increased Core Competency
With an outsourced accounting and bookkeeping service, the business owner can actually focus on running the business efficiently. Outsourcing service liberates them from the task of accounting and bookkeeping and helps them focus on generating increased sales for the company. This increases the productivity and competency of the company in the market.
#Improved Cash Flow
Cash flow is of great importance in running a business. One of the many benefits of hiring an outsourced service is that it helps in improving the cash flow. Hiring professionals help in a better prediction of existing resources and avenues of revenue generation for the business.
With all these pros come a few cons as well, like:
If the finances are not discussed properly on a monthly basis with the outsourced accountant, it can lead to extra costs. To avoid this there must be a periodic dialogue between the parties.
By outsourcing accounting and bookkeeping services, the owner gives up certain control on the function of his company. There are chances that he may not get things done the way he wants them to be.
Business accounting is a subject matter of a very sensitive nature. When all the financial information regarding the company are in the hands of an outside provider, they essentially have all the inside knowledge of the most valuable assets of the company. This could be misused.
No matter how experienced and qualified the service provider is, there is no substitute for physically being present in an office. All the needs and challenges are communicated through a distance only with very limited communication.
Get the Best for Your Needs!
Looking at the pros and cons of outsourced accounting and bookkeeping service, the decision has to be made by weighing the savings and services against the potential issues and risks. However, the cons are not that rigid and can be avoided by proper communication and keeping things clear between both the parties.
One trusted outsourced accounting and bookkeeping service in Pune is Paysquare. Avail its top-class services today and get rid of all the cons associated with outsourcing accounting and bookkeeping!