The Benefits of Outsourced Accounting in Digital-First World

With the tiring and demanding day-to-day chores, dealing with the multiplex accounting operations of a company can be hard nut to crack for internal teams, thus many businesses are tapping into the emerging shift of hiring outsourced accounting for good reasons.  Today, as per a survey 70% of firms utilize external accounting services to streamline their financial processes. It has reshaped the way companies operate their finances by incorporating the tech savvy accounting solutions and implementing the emerging trends.

Many established companies primarily emphasize on hiring the best accounting firms of the region as their accounting partners, since they not just ensure financial strength of a business but transform it drastically to stand out in the global market crowd. In this blogpost we will elaborate the compelling reasons of outsourced accounting in the digital era and what a business ought to search for before onboarding the best accountants for an optimal advantage.

The Concept of Outsourced Accounting

When a company hire an external accounting firm for managing their routinely financial tasks professionally is referred to outsourced accounting. These services are specifically used by start-ups, SMEs and owner managed businesses since their in-house teams are mostly not expert enough with insufficient resources to handle financial operations internally. Some of the accounting tasks you can outsource are,

• Bookkeeping
• Maintaining Accounts
• Payroll Processing
• Tax filing and preparation
• Budgeting and forecasting
• Financial Analysis and Reporting
• Bank Reconciliation
• Auditing and Consulting Services

Outsourced accounting is a cost friendly option for small business leaders to achieve access to the professional expertise that bring the best accounting strategies on the table which promises financial growth.

Upsides of Outsourced Financial Management

Optimizes Workload Distribution

Outsourced accounting offers the best industry skills that takes the entire burden of optimizing, managing, analysing financial data of a firm. External accountants do what they do the best by freeing up the time and resources of the in-house teams to come up with great ideas that are facilitated by the strong financial backbone to advance and expand the business without any stress.

Affordable Solutions

Hiring an inhouse accounting team can break the bank with not just the overhead cost but also the resources and technologies required to setup a dedicated accounting department. With outsourcing companies just need to pay for their required services like bookkeeping, tax preparation or financial reporting, it provides the cost flexibility so the businesses can allocate the left-out capital effectively.

Mitigated Risk and Strengthened Compliance

With the utilization of advance tools, routine audits, tracking KPIs and cyber security measures, financial risks, data breaches and frauds are detected and prevented. Additionally, it helps in compliance with the ever-changing regulatory laws.

Tech supported Benefits

External accountants are equipped with the best tools and software that automates the daily routine repetitive tasks with complete accuracy. They further enable real time data access over cloud which ease the collaboration among team members and built trust of stakeholders.

Global Connectivity

Many outsourced best accounting firms deal with clients worldwide, which open the door for many businesses to expands globally without being worried about the international regulations and requirements.

How Technology is Evolving Accounting?

In the fast-paced digital world where every business prefers to modernize their corporate landscape, technology in accounting is also predominantly encouraging sophisticated digital accounting solutions. According to reports 48% of CFOs intend to make significant investments in accounting technology to streamline their financial tasks. It has also evolved the role of modern-day accountants, today they require diverse skillsets and grasp of advancements in accounting technology. Outsourced best accounting firms smooth the way for integrating latest technology with traditional accounting systems for maintaining a competitive edge, these upgrades can otherwise cost big bucks if deployed within the organization. Let’s delve deep into the 5 most emerging technology trends in accounting,

1. Artificial Intelligence: Artificial intelligence and robotic process automation (RPA) digitize the reoccurring monetary operations with absolute precision
2. Big Data: Carries more extensive and profound insights than traditional data. Through natural language processing (NLP), accountants can offer more precise and insightful analysis, leading to improved client results.
3. Cloud Accounting: All the accounting tasks are shifted to cloud for more proficient accessing, collaboration and managing in real time by ensuring data security.
4. Virtualization Tools: helps the remote workers, non-local clients and stakeholders to have virtual meetings and assists in sharing screen among different platforms.
5. Blockchain Technology: a secure methodology to record transactions, with enhanced financial data access while strengthening security simultaneously

Key Challenges in Accounting Partnerships and How to Choose Wisely?

Despite all the buzz of outsourcing, there comes some challenges if the outsourced accounting firm is not rightly picked, therefore companies need to do a thorough due diligence before appointing external partners in the following areas of attention,

The Expenses can be Unaffordable

One of the major reasons companies look for best accounting firms is their cost effectiveness, however if they come with highly priced packages than it would lead to capital loss actually. Hence, it is important to evaluate the outlined cost structure and hidden charges.

Efficiency Must Precede Benefit

Efficiency is another prime benefit that companies demand with outsourced accounting, for that reason businesses need to think if external accountants would genuinely advantage beyond the internal capabilities?

Converging Values and Goals

Choosing a partner who doesn’t understand the unique challenges of your business can hinder success. It is mandatory to pick an accounting firm that recognizes the needs of your company and align with your business values and goals for top performance and rapid growth.

Threats to Data Security and Privacy

Data security is a rising concern, it is crucial to pay attention to how accountants are storing and handling data with proper security measures to keep the confidentiality of sensitive financial information

Why SS&CO Should Be Your First Choice for Outsourced Accounting

SS&CO KSA is one of the top-notch leading accounting firms among the GCC region, we have specialized accountants armed with cutting-edge tools that encourages and enables cloud integration, blockchain technology and data security. We offer packages that are great value for money and can be affordable for start-ups and business that are short on resources. Contact our accounting team today and allow us to take the weight of accounting operations off your shoulders.