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Friday, December 27, 2013

Benefits of outsourced accounting and bookkeeping

Outsourcing frees up resources for other business objectives
When a company is considering outsourcing, any aspects of the business that are traditionally done in house such as accounting and bookkeeping are often at the top of the list. This is largely because the accounting function of the organization is not core to the delivery of service to customers and can often represent a significant cost. 

A company will generally not outsource core elements of their service delivery to customers, as losing direct control of this can have a significant downside. Furthermore, the ability to reduce this significant cost to the organization, while still obtaining a comparable service, provides an efficient way to cut costs without losing much.

As a business owner is outsourcing worth it for me?

For many small companies where the  accounting and bookkeeping  is done by the owner, manager, or other individuals whose core responsibilities lie elsewhere, outsourcing frees up a significant amount of time better spent elsewhere. Additionally, by now having an experienced accountant or bookkeeper preparing the financial information you can actually end up generating better and timelier financial information. This added expertise is a major draw for many companies as they get the benefits of a skilled accountant without actually having to keep one on staff full time. 
In addition to getting the skills of an experience accountant, you also get access to bookkeeping programs and skilled training that you would have to pay for yourself if you hired an accountant.   Top end bookkeeping and tax preparation programs aren’t cheap, so getting access to those programs when you outsource your services is an added benefit.  On top of that, business accounting and tax rules are constantly changing and with an internal accountant you would have to occasionally pay for the training necessary to keep them up to speed on those changes.  With the outsourced option this cost is passed on to the company you are outsourcing too, keeping you from having to pay for this hidden cost of accounting.

So what kind of accounting and bookkeeping services can be outsourced?

The answer is just about anything as long as the correct controls are in place.  Commonly outsourced functions include payment of accounts payable, following up on accounts receivable, payroll, all basic journal entries, and the preparation of monthly statements and budget projections.  With the right controls, i.e. ensuring the accountant can’t set up new suppliers or employees without approval, all of these processes can be outsourced to a remote provider and often done for a fraction of the cost of hiring a full time accountant.

With a little bit of administrative work at the end of your company, i.e. scanning invoices or bank deposits, the outsourced accountant can take care of nearly every aspect of your companies bookkeeping remotely and without needing to actually be on site.  This means that your options are freed up to hire someone anywhere in the world where they have a good internet connection.

With the overall benefits of reduced costs with the upside of better services being provided most companies small and large should consider outsourcing some, if not all, of their accounting and finance functions.  The ability to add to the bottom line of your company without giving something up makes it an easy decision to make.

About the author:  CFO Business Growth Solutions, LLC provider of part time and interim CFO Services plus nationwide accounting & bookkeeping services. For more information go to  http://www.cfobgs.com/

Image license: Ken Teegardin, Creative Commons


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  2. Outsourced accounting and bookkeeping service are very popular in business
    community. It solves all the economic issues very easily and saves a lot of time.

  3. Outsourcing this type of service can do wonders for a business! It can help the company become more efficient and productive, which leads to higher profits and lower costs. It's definitely an investment worth researching! Thanks for sharing this valuable information!

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