Skip to main content

When we need to outsource accounting & bookkeeping?

Business needs both financial and management reports for the growth of its company. Your business needs basic financial reporting for compliance and making sure your books are accurate. As the business grows, you find it difficult to tackle every aspect of your business. Most bookkeepers only now how to handle billing, collections, deposits, payroll etc. When you reach a point where a bookkeeper is not sufficient this is when outsourcing comes into the picture. 

What is outsourced accounting and bookkeeping?

Outsourced Accounting Bookkeeping is a service which provides full accounting experience for small businesses. An outsourced accounting department handles day to day transactions of the business, accounts payable, accounts receivables, payroll, management financial reporting and many other services. Outsourcing offers a team of professionals at a lower cost as compared to hiring in-house. 
The following reasons will compel you to outsource your accounting and bookkeeping services:
  • Accepting outside investor capital
  • Employing more than ten people to carry out your accounting activities
  • Reaching $1 million in revenues.
  • The business owner cannot be involved in every aspect of the business
  • Requiring more sophisticated financial reports for decision making
  • You see outsourcing as a competitive advantage without any upfront investment of time and money

Benefits of outsourcing Accounting Bookkeeping services to a third party:

  • Focus on core business:
Core competencies are the USP of the business, senior management skills and competitive advantage that are responsible for business growth. Outsourcing accounting activities frees up management’s time and focus on core activities of the business to grow and sustain the business and increase profitability. 
  • Removal of In-house burden:
By outsourcing to a third party, a business eliminates time and money on training, staffing and recruiting their accounting staff. As a manager, you already have human resources issues and a CEO will not want to increase that burden by appointing an accountant department. The outsourcing company has a dedicated accounting team. This team has greater productivity at a fraction of the cost for a full time accounting department. 
  • Access to experts:
One of the biggest advantages of outsourcing accounting and bookkeeping activities is to get access to accounting and business technology experts. These experts devote their time and energy to keep up to date with technology keeping your business in mind. 
  • Peace of mind:
Outsourcing accounting services offers complete peace of mind and offers scalable service. This peace of mind keeps management focused on sales, customer relationships and building value in the business. 
  • Security of data:
Your accounting data is stored on a secured server in the cloud protecting against any physical loss of data and to enhance business continuity and disaster recovery. 
  • Compliance vs. Reliance:
The difference between an inhouse CPA and outsourcing firm is that the CPA typically focuses on tax and audit compliance whereas an outsourcing form  enables reliance such as providing financial intelligence which can help you in making reliable financial decisions. 
Compliance ensures things to get done while reliance provides actionable financial intelligence at your fingertips to make data-driven decisions. 
  • Increased operational efficiencies:
Outsourced accounting firms can increase efficiency for your business by designing and optimizing financial systems with a combination of automation and integration to deliver greater financial reporting capabilities.
  • Decision-Ready Financial Intelligence:
Better insight allows for better financial decisions. A traditional CPA would not be able to derive in-depth knowledge. Hence, a business owner needs strategic decisions that impact profitability of your business. LedgerBench provides Accounting Services.
Labels:

Comments

Post a Comment

Popular posts from this blog

What is Statutory Compliance in Payroll?

Payroll is a complex process with changing legislation, varying allowances and deductions and compliance issues. Many businesses manage payroll in-house while some outsource it to a third party. The goal is to adapt constantly changing legislation and to avoid compliance risk. One of the most important concerns of an employer is to meet statutory compliance in payroll. Payroll is one of the most regulated functions in an organization that must meet federal, state and local jurisdictions requirements.  What is Statutory Compliance ? Compliance is the process of fulfilling official requirements.  Hence, statutory compliance is a legal framework to which organizations must abide by. In nutshell, statutory compliance means adhering to rules and regulations.  A lot of hard work, time and money goes in to make sure payroll is compliant through statutory audits. Each company has different payroll challenges, but what you need is the solution that must be reliable, i...
1 comment
Read more

What are Operating Expenses? (Explanation) - Ledger Bench

  Operating expenses are incurred by businesses to keep the business going, includes staff wages, supplies not include manufacturing cost. Operating expenses does not include manufacturing cost or cost of goods sold (direct labor, material, manufacturing overhead) or capital expenditures (building or machinery)  What is included in Operating expenses? Following are included in operating expenses: Insurance Rent Research Utilities License fees Accounting fees Office supplies Attorney fees Vehicle expenses Travel expenses Payroll for staff excluding labor for manufacturing  Marketing including social media channels such as Facebook Building maintenance and repairs Property taxes on real estate Operating expenses are reflected in the company's income statement. What does an increase in operating expense mean? An increase in operating expense would mean less profit for a business. Often operating expenses receive ...
1 comment
Read more

When we need to outsource accounting & bookkeeping?

Business needs both financial and management reports for the growth of its company. Your business needs basic financial reporting for compliance and making sure your books are accurate. As the business grows, you find it difficult to tackle every aspect of your business. Most bookkeepers only know how to handle billing, collections, deposits, payroll etc. When you reach a point where a bookkeeper is not sufficient this is when outsourcing comes into the picture. Accurate and timely accounting is vital to keep your business afloat.  What is outsourced accounting and bookkeeping? Outsourcing accounting and bookkeeping is a service which provides full accounting experience for small businesses. An outsourced accounting department handles day to day transactions of the business, accounts payable, accounts receivables, payroll, management financial reporting and many other services. Outsourcing offers a team of professionals at a lower cost as compared to hiring in-house.  ...
1 comment
Read more