A global pandemic has changed business operations drastically, making day-to-day business tasks more complex, expensive, and time-consuming. Tasks such as finance and accounting work are often monotonous and resource intense, making it a perfect function to outsource.
Today’s entrepreneurs, startups, and small businesses need to upscale their services and products so much due to globalization. It has led to a boom in the IT industry as well as the Business outsourcing genre of work. Outsourcing has let businessmen & entrepreneurs focus on important activities of the business.
Before going through the benefits, it is important to see some of the common pain points most business owner goes through when it comes to abiding by accounting complexities:
- Hiring in-house accountants with the right skills and technicalities are very challenging for them.
- Compliance with Indian Tax laws and other accounting legalities becomes difficult to follow as the laws and structure keep updating.
- Knowing a company’s financial position, which includes preparing the right company’s financial statement, analyzing financial data and cash flows, and looking into the banking operations of the company, becomes tedious.
Now let’s dive deeper into each pain point, making it easier to comprehend the –
Benefits of outsourcing accounting services
Most businesses consider outsourcing as an add-on cost to their business, hence they bear this cost. In fact, it is exactly the opposite. If businesses do not outsource their accounting needs, they will need to hire in-house accountants on their company’s payroll. Whereas, when the businesses outsource their accounting needs to accounting experts or consultants, they normally charge their fees on an hourly basis instead of a monthly salary which might also need extra attention in the long run towards employee benefits like PF or Gratuity, etc.
Hiring process – Cost and Time
Outsourcing accounting services benefits decision-makers, especially SME owners to spend their valuable time on their products and service upscaling or focusing on expansion to get new business.
It is also observed, many businesses opt to hire an accountant on their payroll which needs scheduling, managing, and taking interviews. You clearly know by now business incurs additional cost for the recruitment process too. This whole recruitment process takes the time that you would have instead dedicated to your other business activities. The precious time is at stake for the cost you incur. Being a business owner, one very well understands the importance of time and therefore how wise it is to outsource the accounting needs rather than hiring an accountant.
Expert on your side
Outsourcing accounting services needs enables the possibility to bring in a high level of expertise into your business. As an outsourced accounting consultant, one is updated about the latest accounting rules, Income tax Laws, and compliances. They are not only updated but they bring in a good amount of experience which gives us insights into new accounting trends, software, and tools.
When accounting services are outsourced, there is no need to train the employees for any of the things mentioned above.
Advisor on the realm
A wise outsourced accountant will always show the real picture of your business. As He/She would be maintaining your company’s financial statements, its cash flows, cash leaks, wastage of resources, they can surely suggest ways to improve upon the same.
There are many such Benefits of Outsourcing accounting services when many businesses want to just focus on gripping growth strategy. Keeping flexibility and time-saving methods as their core need, helped many businesses survive in these uncertain times.
Lastly, I would like to wrap this blog saying that, if you are considering outsourcing your accounting services, make sure to find the right provider for your business.