Benefits of Outsourcing Finance and Accounting Services
Outsourcing has become very popular with small business owners over the past several years, and for good reason. Outsourcing provides significant benefits that allow owners to make agile decisions and tap deep wells of expertise that ultimately fuel the growth of a business. Outsourcing finance and accounting services in particular is one of the most common functions of a business that companies choose to outsource.
In that spirit, let’s take a close look at why growing organizations outsource their accounting needs—and the benefits they enjoy for doing so.
Why outsource accounting services?
There are many benefits to outsourcing accounting services. Most are the result of businesses trying to make their accounting processes more accurate, agile, and useful without adding a lot of overhead costs. For accounting and financial services, this typically means outsourcing instead of hiring additional employees as your needs grow. Or it might mean outsourcing some of your accounting needs while keeping certain functions in-house.
The other primary reason businesses outsource accounting services is because they need consultation as much as they need responsibilities covered. These businesses understand they need guidance—and sometimes that means hiring experts to come in to assess and identify areas to improve. This can be especially beneficial when it comes to accounting and finance help.
What are the 5 benefits of accounting outsourcing services?
- Relieve added pressure and responsibilities for current employees. If you’re thinking about outsourcing accounting and finance responsibilities, there’s a good chance that either you or one of your employees is acting outside their job description and spending a lot of time on mundane accounting tasks. Bookkeeping and finance record management quickly get assumed by some of your best employees that should be creating value for your business—relieve that pressure by outsourcing the services you need.
- Little-to-no training required. When you onboard new employees, sometimes weeks are required before they’re up to speed. And, sure, outsourced employees will require some transition before they know all the idiosyncrasies of your business, but outsourced accounting companies exist to quickly adapt to new companies. Outsourced accountants work with companies like yours everyday and so are often able to onboard at a much faster speed than a full-time hire. You save time and resources without training new hires.
- Outsource only what you need to. A misconception is you have to outsource every accounting or financial service responsibility in your business if you outsource at all. That’s not true. You may need to automate a task that your team is getting bogged down with or get expertise in an area you are finding challenging. You can be strategic with what responsibilities you choose to outsource so you retain employees that still play a role on your team. Or, as you grow, you can outsource temporarily until you find the right people to fill those positions long-term.
- Outsource experts for the work. When you outsource, you deal with companies whose business-model is to provide expert-level help. They have likely seen your challenges before and are able to provide advice based on what’s worked well for other successful businesses. You’re getting the best help for the project or comprehensive accounting services you need, bar none. When you contact outsourcing providers, be specific with the roles you’re trying to fill or the needs your business has so you can get the most tailored help. Even if most of your accounting is done in house, good outsourced accounting firms will help you develop your accounting ecosystem so it is as efficient as possible reducing the number of redundant and manual tasks.
- Save time and resources typically required for hiring. Hiring takes time and resources away from the business at hand to find the right match. A single posting will generally require sorting through dozens, if not hundreds, of applications. And even with the most impressive work history and references, there’s no guarantee the employee will be a good fit. You lower the risk when you outsource with a trusted provider.
What are the benefits of accounting services for business?
Outsourcing accounting services can be a boon for growing your business—but often business owners aren’t aware of how outsourced accounting can help. Too often businesses think about accounting and finance as contributing only in traditional ways: bookkeeping, record management, and accounts receivable and payable. While those are critical functions that need to be done accurately, this mindset limits the real scope accounting and finance services can contribute. Outsourced accounting and fractional CFO services that help a business think strategically and track their strategy back to KPIs can be pivotal in growing your business.
What are the advantages of outsourcing the accounting functions?
When you outsource accounting functions, you invite an expert, trusted advisor into your business’ most intimate information. The right partner can provide invaluable insights to the cash flow of your business, which is a good sign of how well you’re succeeding—or how close you are to collapse.
If the reasoning behind outsourcing accounting and finance services resonates with you and some of your business’ needs, Milestone can help you develop a competitive advantage with your accounting needs. From CFO-level strategy to forecasting to bookkeeping, we provide businesses expert help in achieving their accounting and finance goals—often in ways they hadn’t imagined. Contact us today for a free assessment of your accounting needs!
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