Why More Businesses Are Turning to Outsourced Accounting Services

With the bazillions of daily routine tasks going around in a professional workplace, it gets sometimes frustrating for in house members to handle each and everything on their own, resulting in delays, inaccuracies and may cost a fortune. Outsourcing in that case comes as a great source of help, the two mainly outsourced departments are mostly either IT or accounting since they require a vast number of skillsets. Outsourced accounting services encourage the workforce to prioritize their essential duties that require urgent attention rather than being worried about the bookkeeping, accounting, and compliance services. When companies hire best accountants it not just enhances the productivity but save the costs as well. To stand out in the today’s competitive market it is a necessary for the enterprises to emphasize on financial management and bookkeeping methods as it is a backbone of any successful business. In our blog today, we will explain to you the challenges faced by in house accounting teams that encourages owners to invest in outsourced accounting partners.

Understanding Outsourced Accounting Services

Outsourced accounting refers to hiring a third-party organization that looks after the financial matters of your company by reducing the burden of an in-house accounting team. External accountants take the complete financial responsibility by covering the following areas,

• Bookkeeping: Routine track of transactions by recording income and expenses. Performed by junior bookkeepers.
• Cashflow Management: cashflows are managed by professional accountants by analysing the inflows and outflows of cash.
• Monthly record-keeping: keeping the monthly record of financial data insights, details and month end closing process.
• Operational Assistance: providing efficiency and improvements in daily basis financial operations across the workplace.
• Payroll Management: processing and organizing salaries, bonuses, and employee’s compensation and ensuring compliance with labour laws.

The Struggles of In-House Accountants

For a business owner and stakeholders, it is significantly important to have a thorough insight of entire firm’s financial operations. SME’s and start-ups sometimes don’t prioritize bookkeeping services and accounting needs mainly because of the low-budgeting and less skilled workforce, which is one of the core reasons why they fail within just the first couple of years. Depending on in-house accounting teams might seem economical but in fact it becomes much more exasperating and costly when you look at the hurdles faced by internal accountants, some of them we will explicate below,

·       Bookkeeping Blunders

A single bookkeeper for day-to-day financial handling can be tiring and demanding, it also requires multiple skills otherwise leads to costly mistakes and sometimes these faults go unnoticed resulting in wide scale consequences and huge capital loss.

·       Budget Consideration

Internal bookkeepers can be much more expensive than external accountants when you calculate the salaries, cost of hardware and expenses of latest tools and software utilization that are the need of modern-day accounting.

·       Risk of Internal Fraud

Frauds from internal team members can be hard to detect and cause a loss of hefty amount to the company and require strict internal checks and audits. However, outsourced accounting removes these risks, protect against frauds and will commit to your company with loyalty.

·       Out-dated financial training

Accounting is the profession that needs constant updating with the everchanging laws and technological advancements. The old team members or less skilled employees sometimes lack this proficiency, so the need of constant training is required which can be overloading for in house members already struggling with multiple tasks.

The above-mentioned critical challenges come with scalability issues, compliance struggles, lack of quality and security. Therefore, pushing the organizations to bring outsourced best accountants on the board to stay in the lead in market.

Maximizing Business Efficiency with Outsourced Accounting

In the present times, outsourcing is gaining prominence as it is an easy and stress-free escape for both large and small enterprises to implement robust methodologies without being worried about the training costs and dealing with the regular setbacks. The core benefits of outsourced accounting services that are increasingly appealing to industries are,

1.     Maximize Expertise and Minimize Expenses

External accounting firms have specialized accountants with the required knowledge and years of expertise, these top-notch experts also ensure compliant with everchanging laws framework. They additionally reduce the payroll and other services cost, compliance penalties and minimizes expensive mistakes.

2.     Deployment of Advanced Technology

Technology is radically transforming business operations, it has become a centralized need of the day, these technological advancements are sometimes expensive and challenging for internal workforce. External bookkeepers utilize latest financial reporting tools and software, cloud-based servers and integration of AI along with routine tasks which promotes automation, provides security, eliminates errors and track financial records in real time.

3.     Global Market Reach and Scalability

Companies can scale without being worried about hiring extra in house accountants, data expansion problems and compliance issues. Outsourced accounting services providers also support industries with fluctuating demands, like seasonal workload and irregular cashflows, they provide customized plans and flexible accounting models which adjusts to the changing circumstances accordingly. Furthermore, industries looking for worldwide expansion, external global accounting firms are well equipped to deal with challenges regarding cross-border transactions and multiple jurisdictions.

4.     Eliminates Risks and Improves Data Security

With the contemporary knowledge and cybersecurity tools, confidential data is safeguarded from the hands of hackers, the latest security measures prevent breaches and strong cyberattacks. They further assist in auditing services, which helps in observing internal workforce efficiency and detecting fraudulent activities across the work space.

5.     Reducing Workforce Turnover

Financial reporting position requires high productivity and increased workload, which sometimes leads to downtimes, discourages employees and results in employer’s turnover, hiring a new professional is even more demanding. External partners reduce this turn over by providing a wide variety of accounting and bookkeeping services.

Best Practices for Effective Outsourcing

Not all outsourced accounting services provider are best for your company, hence while hiring an accounting firm must ensure to outsource the right way by not overlooking the following areas,

• Choosing the best bookkeepers that align with the needs of your company’s requirements, it is important to think about the core financial areas that consumes the majority of your resources to hire accountant specifically focused on prime needs.
• Set your goals on where and why you want productivity? Is it for saving cost? Or increased security or profit margins? This will help you Evaluate the influence of outsourcing on your business
• Your relationship and understanding with the outsourcing partner is as crucial as the technical needs, be sure to choose a partner who is not just proficient in hard skills but soft skills as well.
• Read the contract, pricing structures and rules of your subscription, it sometimes comes with additional hidden charges, thus an in-depth review of outsourcing plan can save you from forthcoming concerns
• Preparing your teams for outsourcing accounting services by elaborating them their refined duties, new strategies and how they can effectively communicate with the external partners to assure maximum productivity

It is absolutely important to look for a well-established accounting and finance team, with the dedicated management and support system to assist you in better organizational outcomes and smart decision making.

Why SS&CO as your Outsourced Accounting Partner?

At SS&CO KSA we put forward a plan with end-to-end accounting services, with economical cost and no hidden charges. We have the best accountants who team up with your existing employees and come up with customized accounting solutions as per your demand and requirement. We offer a wide range of services including; outsourced payroll management, bookkeeping, tax preparation and filling, managed accounting, auditing, forensic accounting, CFO services, ERP integrations, business consulting, budgeting and finance and business partner services. Our support team is ready to help around the clock to address your problems with solutions. Take the next step—work with us!