Outsourcing in accounting and bookkeeping is the practice of partnering with external professionals or firms to handle specific or entire accounting and bookkeeping functions on behalf of a business. By delegating financial tasks to a specialist individual or team outside of one’s own organization, it allows businesses to focus on their core responsibilities and strategic initiatives.

How popular is outsourcing in accounting and bookkeeping?

Accounting and bookkeeping outsourcing processes have gained popularity over the last decade. Following a dramatic increase in the wake of the global financial crisis In addition. More businesses have taken up the method in recent years thanks to advances in cloud computing as well as online video conferencing, as well as digital information. Numerous studies have shown that:

• Accounting and finance outsourcing is expected to be $51 billion in 2026.
• Accounting is one of the most commonly outsourcing process in small businesses as well as in large businesses.
• 37% of small-sized businesses contract out both accounting and IT services.
• Finance professionals consider 89% of the accounting functions highly automated.

Reasons to outsource accounting and bookkeeping services

Outsourcing has always been a successful business strategy and is the same for companies seeking to boost efficiency in bookkeeping and accounting.

• cost savings:

  Working with a reliable outsourcing service in destinations that are offshore, like the Pakistanis can benefit businesses save around 70% off cost of labor. The combination of lower costs of living as well as a reduced need to spend on infrastructure like office equipment and space is proven to be a winner and businesses can instead invest the funds in marketing research, product development or the boost in production.

• Flexibility:
  

  outsourcing accounting and bookkeeping services is a great method for companies to rise or reduce staffing levels depending on the volume of business. Through the use of the resources of an outsourcing company. There is no need for lengthy recruitment campaigns or costly compensations when reducing the number of employees. This flexibility is particularly beneficial during peak accounting times like tax season, and allows businesses to rapidly alter staffing needs in very shorter time frames.

• Technology:

  Bookkeepers and accountants are among the top professions that have embraced cloud-based services in recent years. Cloud-based accounting allows offshore workers to share and access financial information whenever and where they’d like. The business continuing to introduce and upgrade software and systems that focus on providing benefits like lower costs and a more enjoyable user experience.

• Increased efficiency:
  Why go it alone on the accounting and bookkeeping front when specialist offshore providers have streamlined processes in place? The ability to add improved efficiency is a boon for companies and allows them to concentrate on their core competencies perfect while delegating the bookkeeping and accounting needs to firms who are equipped with efforts and tested processes.

• Retention of staff:
  

  Outsourcing has the ability to not just rise bookkeeping and accounting processes. But also provide an improve in morale to the entire employees. By allowing offshore teams to focus on the tasks that will drive the growth of their business (eg building relationships with clients) or operate at a more manageable speed, this business approach has proven effective in reducing the turnover of staff and reduce the amount of time and expense required to attract new talent.

• Financial reports that are accurate:

  Outsourcing providers have an interest in providing superior services. This is a great thing for businesses who partner with them. Their entire livelihood is dependent on providing work at the top of their game and that’s the reason what makes the excellent outsourcing companies invest a lot in educating highly skilled bookkeepers and accountants who can increase the standard for efficiency, accuracy and adhering to the requirements of compliance.

What Accounting and Bookkeeping Roles can be Outsourced?

The days when outsourcing was primarily about call centers and data entry are over. The modern outsourcing provider has access to team members who have leading qualifications and unrivaled industry expertise. This is especially so in the accounting and bookkeeping field, with the number of roles that can be outsourced including:

• Accountant
• Bookkeeper
• Auditor