Many small businesses, entrepreneurs, and start-ups find it difficult to hire outsourced bookkeeping—hiring accountants especially with the right skills for preparing the company’s financial statements, analysing financial data, managing account operations, and preparing outgoing invoices.
These days it is even tougher to find an eligible and qualified person at a manageable rate. More than ⅓ of small businesses outsource their accounting; surprisingly, many small companies do not feel comfortable doing the accounting on their own.
Though it is commonly believed that Bookkeepers Perth bookkeeping and accounting has to be done inside the business, it is important to ask oneself whether they have the required skills and experience needed to do the job. Also, whether a company staff has enough experience to enhance accounting works. To add to it, over 60% of small businesses think that they overpay taxes.
Due to this reason, one might consider outsourcing accounting services to a company that has the right qualification and knowledge. Also, the company can effectively do the exact job with quality.
Companies who run their businesses on a large scale need Outsourced Bookkeeping services to save their time and money.
Benefits Of Outsourced Bookkeeping
Several benefits come with outsourced bookkeeping. Some of these are-
-
Accounting services at less cost
Generally, many businesses consider outsourcing an additional cost and therefore unnecessary for the business. But the perception is not right, and it is just the opposite. The clients who outsource accounting want to reduce expenses without reducing the quality. Saving provided by outsourcing can be considered as many companies offer services at a low rate, mostly due to low labour costs at the location.
Alternatively, outsourcing can save money on paying salaries, office supplies, taxes, and benefits for full or part-time employees. One only pays for what they need; there is not much cost in productivity while hiring full-time employees.
-
Eliminating cost and time of hiring process
The recruitment process is a tough job when one looks at the picture. It takes many resources to manage the process, from forming a recruitment strategy to selecting applicants to interview them.
The recruitment process takes a lot of business time and costs and will need to dedicate time for oneself and employees. Some companies consider looking for a professional accountant, and time correlates with cost, and this needs to be accounted for by the savings of an outsourcing business process.
-
Saving time
As a business grows, one will spend a great amount of time managing money and less time to scale the business. Therefore, the outsourcing tasks of administration such as small business bookkeeping and accounting helps one to focus time, energy and resources to create business strategies.
This can help bring more revenue, network, and build relationships with customers. This will only lead to the business being more efficient, which will be beneficial not only for the company but also for the employees.
-
Accountants and bookkeepers with good expertise
Outsourced Bookkeeping Service could offer several possibilities of hiring a professional with a good level of expertise at a good price. Outsourced accounting and bookkeeping service corporations have to constantly improve their qualifications and skills to remain competitive in the market. There are accounting companies that have wide access to a team of accountants.
For instance, at Baltic Assist, a company gets a team for a fixed price; they do not receive just a single person to do bookkeeping work. A person needs to choose the right outsourcing company that can benefit the business.
-
Ascending accounting in an easy way
The professional accounting services providers have a good amount of availability for scaling services significantly without having any lag. For instance, when bookkeeping and accounting work exceeds the range of functions for a single employee, that would amount to an extra workforce. A rigorous recruitment process is also not needed.
Moreover, bookkeeping and accounting service providers charge on an hourly basis, which means one can scale up or down on an hourly basis without interruption.
-
Automated technologies
Many businesses use accounting automation software for saving time and also reducing risks. Automating accounting helps minimise human mistakes, and in this software, accountants have real-time reports. They help catch serious problems and solve them in the early stages; it will also help reduce the possibilities of any internal fraud.
Many accounting service providers are quite qualified in automation tools like Sage, Xero, Visma, Microsoft Dynamics, SAP, etc. If accountants are only using excel sheets, they are wasting time and money.
-
An accountant can be considered an advisor
A qualified accountant can always provide advice on making accounting more efficient. Sometimes they might work with many companies and give a good experience from a different client. It could be about taxation, providing financial assistance or using accounting software.
When Does One Need To Outsource Bookkeeping And Accounting?
There are various reasons why would a company need Outsourced Bookkeeping, they are-
- Small businesses do not need a full-time bookkeeper but need a person with more skills than a receptionist or an office manager.
- A company of any size will find it difficult to hire full-time employees with good abilities at a reasonable cost.
- A growing company needs to look for many opportunities for scaling its accounting and bookkeeping services.
- Temporary services are needed, like more help with year-end reports or if a full-time employee is on holiday or maternity leave, etc.
However, even when one hires a skilled and qualified person, someone like the executive director could need to be involved in the process to approve invoices, review timesheets, make deposits and many more.
Final Note
There are various advantages for clients who decide to outsource accounting tasks. To start with cost-efficiency and ending with flexible contracts or ascending various business functions. Accounting and bookkeeping are an important part of business and also very difficult. Time and knowledge are required for this, and many problems could arise in a business without accounting knowledge.
There are many Bookkeeping Services in Perth that could help businesses do accounting/bookkeeping work without wasting time and money.
