Many entrepreneurs and small business owners are turning to accounting service providers as they are finding it difficult to find the right accountant at an affordable rate to handle their corporate financial needs. From the preparation of invoices and financial statements, bank reconciliation as well as analysing the financial data etc.
Even though it is a common belief that accounting and bookkeeping must be done internally, it is essential to ask yourself these questions as a business owner. Do you have the relevant experience and skills to do the job?
Also, do your employees have the same experience to take on additional responsibilities? If not, you might consider outsourcing your accounting to a professional accounting service provider who has the right qualifications and experience to help you. They can get the work done in a timely and cost effective manner. Moreover, because they are the experts in this area, you can be assured of their work quality.
Still not convinced? Here are 5 great benefits of hiring an accounting service provider:
1. Expertise on demand
You only hire the accounting service provider when you need them and what’s more, you get a higher level of expertise at an affordable rate. These accounting service providers need to continuously keep abreast with the accounting industry trends to stay competitive.
Meaning that they will constantly improve their skills and qualifications due to their extensive access and participation to training, courses etc. When you engage an accounting service provider, you gain access to the whole team so you can be assured that your accounting and bookkeeping needs are in good hands.
2. Eliminates time and cost in recruitment process
Companies usually spend time to find a suitable accountant who has the right skill sets within their budget but it is often challenging. During the recruitment process, a lot of time is wasted just trying to find the right candidate who will fit the bill and time equals money.
Opportunity cost is lost when more sales and profits could have been generated during the time taken to find an accountant. The time must be accounted for by the savings of outsourcing business processes.
3. Cost and time saving
If you hire an accountant as a full time employee, you not only need to pay for the salary, but also for other forms of mandatory benefits and taxes etc. However, if you hire an accounting service provider, you only need to pay them when you use their services. You get the same quality of work and save on the amount of expenses that you would need to pay a full time employee.
As your business grows and you need to focus even more on scaling your business, outsourcing the accounting and bookkeeping needs of your business will help tremendously in helping you to manage your time, energy and resources effectively. You can leave the stress and burden of accounting to the experts and just need to focus on generating more revenue and building great relationships with your clients.
4. The power of automation and technology
With advancing technology, there are many cloud based automated accounting solutions today to save time. Automation becomes possible and accountants as well as key personnel are able to access reports in real time.
Most importantly, automation minimises human errors, assists in detecting and resolving potential issues at an earlier stage as well as reducing the probability of fraud. Many accounting service providers are highly qualified in a number of automated accounting solutions so you can choose which is the most suitable for your business and get their help in setting it up so invoices, expenses, payments and revenue are all kept in 1 central cloud server for easy access 24/7.
As your business grows and the number of accounting and bookkeeping tasks increase that it becomes overwhelming for 1 employee or person to handle, the accounting service provider has the availability of professionals from their team to scale your services significantly without any gap. And because they are hired on demand, you can scale up or down the hours without any disruption to your business.
Furthermore, it is not just limited to accounting and bookkeeping needs. The accounting service provider usually has a range of services so even your taxation and corporate secretarial needs can be taken care of by the same provider.
In summary, there are significant benefits for companies who decide to hire an accounting service provider which include cost efficiency, flexibility in terms of contracting and scalability. Accounting and bookkeeping are a vital part of business but it takes time and specific skill sets as well as experience to complete the financials without error.