A full-fledged accounting team is very important if you wish for good business growth. A business can decide to outsource or hire an accountant who will enable them to manage payables and receivables properly and maintain good records.  

Accounting outsourcing services help you focus on the necessary tasks and give you time to breathe while outsourcing companies help you with accounting. 

Although there are many factors that a business should check before choosing an appropriate outsourcing company. There must be preferred accountability, affordability, and transparency in the equation. 

Through this blog, we will shed light on the fact that Accounting functions can be outsourced and how is it beneficial. But first, let us dig a little deeper into accounting outsourcing. 

What is outsourced accounting?

The term outsourced accounting refers to when a company hire third-party business accounting services that handle all your accounting-related tasks for a fixed price. 

They have experience in handling all your accounting and booking needs with business transactions, tax filing, employee payroll, reconciliations, financial planning, and other services. 

As an outsourced accounting, they work as a part of your company. 

What are the benefits of outsourcing accounting services?

There are endless benefits of accounting outsourcing services. Let us put light on why you must go and hire them. 

Cost-Effective

Hiring an in-house accounting team can be expensive. You start with costs for job ads, then add salaries, benefits, supplies, software, and training. When outsourcing to a third-party accounting provider it allows you to pay only for the services you need and fit your budget and specific needs.

Expertise

You need expert help to manage accounting even with the best tools available. Building an in-house team with the right expertise is costly. Through outsourcing, you get access to experienced accountants who have worked in various industries. It ensures your bookkeeping is in capable hands. 

Scalability and Flexibility

As your company grows so does your accounting workload. This means hiring more staff and that increases costs. Outsourcing enables accounting firms to scale as per their needs. There are no hassles related to new hiring whether they are growing rapidly or experiencing a slowdown.

Reducing Stress

The end of the financial year, audits, and tax season can be stressful. Outsourcing accounting reduces this stress as these firms are equipped to handle these periods efficiently, keeping your business calm and collected.

Lower Risk of Fraud

In-house accounting can sometimes lead to internal fraud. Outsourcing reduces this risk as these companies have secure systems in place to protect your data. They maintain a high standard of security to protect their reputation and your business.

Boosting Business Efficiency

Outsourcing accounting allows your team to focus on their strengths while experts handle the financials. This helps your CFO make better decisions, plan for the future, and manage risks, ultimately leading to business growth and efficiency.

Advisors, Not Just Accountants

Experienced accountants provide more than just bookkeeping. They offer valuable insights and advice that can improve your cash flow and overall financial management.

What accounting services can be outsourced?

As there are so many modern technologies, many accounting functions can be outsourced. Let us see what are those. 

Bookkeeping

One of the most basic functions of accounting is tracking and maintaining the company’s financial records. This includes revenue and spending. Bookkeeping is often performed by a bookkeeper who has entry-level financial skills. 

Monthly-basis Accounting

The next thing after bookkeeping is monthly accounting. This includes closing the monthly books and providing insights related to current financial health. The monthly accounting processes are mostly managed by a high-level professional such as an accountant. 

Managing Cash flow

You must adopt a future-focused accounting practice that takes in the company’s cash inflow and outflow to create a short and long-term project cash flow. This forecasting can be performed through an experienced and high-level accountant.  

Outsourced CFO

Outsourced CFO services allow businesses to hire a part-time and experienced financial professional for consulting and high-level financial support. These CFOs bring extensive financial and accounting expertise.

These services help business owners improve efficiency and gain better insights through enhanced processes and top technology. These services are provided by financial professionals or consultants who help businesses operate more effectively. 

Things to look for before outsourcing your accounting services

There are many accounting outsourcing out there and you do not want to get stuck in the wrong choice. Follow the factors below to choose the best outsourcing company for accounting. 

Security 

Data security must be on priority. Well, that is because a minor violation can lead to a big disaster. Accounting firms care a lot about their reputation and are not going to get into the activities that can bring it down. 

You must ensure that you check it twice and also get it in writing. You must check their security systems and take measures if they can handle such confidential information or not. 

Cost 

Every organization has its unique pricing plans that are based on multiple factors. You must check their plans other than checking the outsourced accounting services cost. 

Check how they estimate the accountant’s salary, and if it is based on a monthly or hourly basis. It is best to choose an accounting solution provider that offers more value for money as compared to those that are just economical in pricing. 

Flexibility

Businesses can expand quickly and scale up their operations. In these cases, your accounting outsourcing partner should be able to add more accountants to handle the increased workload. Before deciding to outsource your accounting, check how flexible the providers are.

Comprehensive Accounting Services

What specific accounting tasks do you need help with? Is it payroll, managing accounts payable and receivable, or just analyzing accounting data? If you have someone handling these tasks now, talk to them about what should be outsourced.

To ensure everyone is on the same page, make sure you have a chat about what your company needs right now.

In the end

We understand that hiring an accounting expert can be very expensive when compared with the outsourcing company. 

You must be able to find a company that has outstanding outsourcing industry experience. 

And we are pleased to announce that you have landed on the right page. At Cargaison Express, we offer the best outsourcing solutions. Contact us today and we can help you with the outsourcing accounting functions that can grow your business.