Is it Right Time to Outsource Accounting Services?
Outsourcing accounting services operations is a smart business move. It provides you with access to talents without spending as much as hiring an in-house accountant. But when is the best time to outsource accounting services?
What is accounting outsourcing?
Before we proceed, let’s have a short review of accounting outsourcing.
Accounting outsourcing is the business practice of hiring a specialized company to handle your entire or a portion of your accounting operations.
While it’s known as a cost-cutting tool, it delivers more benefits than it’s popularly known for. You can use it as a strategy to close the talent gap in your organization. At the same time, it allows you to shift your time and energy from crunching numbers to strategic decision-making. .
When to outsource accounting
It’s time to outsource your accounting when:
Accounting is not your specialty
Successful business owners focus on the big picture rather than the minute details of day-to-day operations. Doing so enables them to be “clear, decisive, and disciplined at the macro level,” an article from the Harvard Business Review stated.
And you should, too.
As a business leader, it is essential to let go of tasks that slow you down from developing strategic plans. This includes your accounting operations. Instead of spending time crunching your numbers, you will get more long-term benefits if you outsource them to accountants.
Why? Aside from their knowledge, good accountants are also well-organized and detail-oriented. They can assure you of reporting accurate accounting information so you can make the best business and investment decisions.
Overall, it’s a good tandem — you can focus on the big picture while the accountant takes care of the details.
Your financial records are messy
Even if you have the best intentions in place, your growing responsibilities can weigh you down and prevent you from organizing your records. However, disorganized and outdated financial records can lead to dire consequences:
- Inability to file taxes on time
- Lengthier accounting processes
- Data entry errors
- Unclear view of the company’s financial position
- Difficulty finding investors and lenders
- Challenge in applying for government grants
Outsourcing your accounting resolves these concerns. A bookkeeper or accountant keeps your books accurate through regular data entry and reconciliations. When you have organized records, you’ll have an easier time assessing your financial standing, filing tax returns, and applying for loans and grants.
You need to focus more on your core business
Forty-three percent of business owners are concerned about always being on a job.
Business owners should spend more time thinking than doing. If you keep being an all-in-one person who does accounting, marketing, admin, and other duties, you’re likely to feel burnout often. It isn’t smart; it’s a waste of energy you could’ve spent devising business growth strategies.
If you want to accelerate business growth, you need to be willing to delegate tasks to the appropriate people. Running a business may be a juggling act, but you need to choose what you can only juggle.
Your in-house accountants need additional support
Another sign that you should outsource accounting services is when your in-house accountants can’t handle their duties anymore. Your business may have experienced faster growth or you’re going through your peak seasons.
Rather than hiring additional in-house employees and worrying about the overhead later, it is better to outsource back-office accounting support instead.
Outsourcing is flexible. You can choose how long you need the service — short-term or long-term and part-time or full-time
It is also scalable. This means you can start with a single outsourced staff then you can build a team as your business grows. On the other hand, when business is slow, you can work with your outsourcing partner to adjust the number of your employees, including the time they render at work.
Finding the right talents is difficult
The war for talent intensifies due to the massive resignations in the UK. Employees are leaving their current jobs in search of better work opportunities. Meanwhile, employers are looking for new talents with digital-ready skills.
If you’re trying your best to find a reliable accountant for your business but you have no luck in recruitment, outsourcing is a good option to consider.
When you outsource, the outsourcing company will take care of the entire hiring process. They screen the candidates based on your requirements: skills, qualifications, industry experience, and more. Plus, you can get access to global talents at a lower cost.
To recap our discussion, the signs of when to outsource work appear when it’s not your specialty in the first place, you have messy financial records, you need more focus on your core business, your in-house accountants need support, and when finding the right talents is difficult.
Your go-to specialized accounting outsourcing company
Fin-eX Outsourcing focuses on bringing the best accounting services to our clients.
To facilitate our employees’ career growth and development, we offer regular in-house and external training and encourage them to take certifications on accounting software like Xero and QuickBooks. This way, we can give you the confidence of entrusting your accounting operations to the experts.