How Outsourced Accounting Can Save You Money and Time (8 reasons)

Outsourcing accounting can help businesses save money, improve efficiency, and focus on their core competencies.

While some businesses may be hesitant to outsource such an important function, there are many benefits to consider. Here are five key benefits of outsourced accounting:

1. Cost savings

Outsourcing accounting can help you save money on the following costs:

 

• • Hiring and training costs: Outsourced accounting providers typically have a pool of pre-trained accountants who are ready to start working right away. This can save you the time and expense of hiring and training your own accountants.

     

    • • The average cost to hire and train an accountant is $50,000.
    • • Outsourced accounting providers can typically do the same work for a fraction of the cost.

• • Software and hardware costs: Outsourced accounting providers typically have the latest accounting software and hardware. This can save you the cost of purchasing and maintaining your own software and hardware.

     

    • • The average cost of accounting software is $2,000 per year.
    • • The average cost of accounting hardware is $1,000 per year.

• • Employee benefits: Outsourced accounting providers typically don’t have to pay for employee benefits, such as health insurance and retirement contributions. This can save you a significant amount of money.

     

    • • The average cost of employee benefits is 30% of an employee’s salary.

2. Access to expertise

Outsourced accounting providers have teams of highly skilled and experienced accountants who can provide you with valuable insights and guidance on financial matters. This can help you make better financial decisions for your business.

Outsourced accounting providers typically have accountants with experience in a variety of industries, so they can provide you with the specialized knowledge you need.

Outsourced accounting providers are also up-to-date on the latest accounting regulations, so you can be sure that your financial statements are compliant.

3. Scalability

Outsourcing accounting allows you to easily scale up or down your accounting services as needed, without having to worry about staffing constraints. This is especially beneficial for businesses that experience seasonal fluctuations in demand. * For example, a retail business may need to hire more accountants during the holiday season to handle the increased workload. * With outsourced accounting, you can easily scale up your services without having to worry about hiring and firing employees.

4. Time savings

Outsourcing accounting frees up your time to focus on other aspects of your business. This can include growing your business, developing new products or services, or marketing your business.

The average business owner spends 10-15 hours per week on accounting tasks. By outsourcing accounting, you can free up this time to focus on more important things.

5. Improved financial reporting:

Outsourced accounting providers can help you improve your financial reporting by providing more robust reporting and analysis tools. This can help you track your financial performance and make better financial decisions. Outsourced accounting providers can also help you prepare your financial statements for tax purposes.

6. Reduced risk of errors and fraud:

Outsourced accounting providers have strict controls and procedures in place to ensure accurate financial reporting and compliance with regulations. This can help you reduce the risk of errors and fraud in your financial statements. Outsourced accounting providers also typically have insurance to protect you in case of errors or fraud.

7. Improved customer service:

When you outsource accounting, you can free up your customer service team to focus on providing better service to your customers. This can help you improve customer satisfaction and loyalty. * Outsourced accounting providers typically have a dedicated customer service team that can answer your questions and help you with your accounting needs.

8. Increased focus on growth:

By outsourcing accounting, you can free up your time and resources to focus on growing your business. This can help you achieve your business goals and objectives. By outsourcing accounting, you can focus on your core business activities and let the experts handle the accounting.

Choosing an outsourced accounting provider:

If you are considering outsourcing accounting, there are a few things you need to keep in mind when choosing a provider:

 

• • Reputation: Make sure the provider has a good reputation and a proven track record of success.

• • Experience: The provider should have experience working with businesses of your size and industry.

• • Services: The provider should offer the services you need, such as bookkeeping, accounts payable, accounts receivable, payroll, and tax preparation.

• • Price: The provider should be competitive in terms of price.

• • Communication: The provider should be easy to communicate with and should be responsive to your needs.

Conclusion: Outsourcing accounting can offer a number of benefits for businesses of all sizes. By carefully choosing an outsourced accounting provider, you can save money, improve your financial reporting, and free up your time to focus on other aspects of your business.

Would you like Bhrikuti Advisors take care of your accounting function? Contact us.