When Should You Outsource the Bookkeeping and Accounting Functions of a Business?
17

May 2021

These days outsourcing bookkeeping and accounting functions helps companies of all sizes shore up their teams' skill gap by outsourcing a particular activity like accounting or auditing or planning to a third party. Outsourcing boosts the teams' efficiency and sharpens their focus. Advancement in technology has enabled outsourcing to be an affordable option.

Since the third party can perform the operations from anywhere on the planet, business leaders don't need to shell a lofty sum for overhead costs and expenses, especially small and medium companies and entrepreneurs with little capital to burn.

However, to benefit from this, you need to know when you should opt for outsourcing your Accounting and Bookkeeping services; as discussed

  1. Cost-Efficient
  2. Focus on Business Growth
  3. To Comply with Tax Regulations
  4. For Financial Advice
  5. Reduce Malpractices
  6. Access to New Software

Each reason is discussed in detail below;

  1. Cost-Efficient

One of the apparent and most important reasons for outsourcing your bookkeeping functions is that it helps you save money. When you hire an accountant, you're paying him daily wage or an annual salary, increasing your operating expenses. Naturally, keeping your operating costs and Payroll low should be a priority.

But, hiring extra personnel does come with its attached costs -

  • Insurance
  • Benefits
  • Training
  • Recruiting
  • Increased facility costs

Utilise the outsourcing service to reduce costs and to spend wisely on growing your business.

  1. To Focus on Business

A business is started to sell a product or a service. By outsourcing the accounting functions, you can concentrate on offering a better product or a service to your customer by focusing on the critical roles in the business that matter the most.

Businesses that outsource their bookkeeping services and accounting services can focus on;

  • Marketing their Product
  • Better understanding their customer needs
  • Making a better product or service
  • To increase their efficiency

While skilled accountants are managing their finances, businesses can increase revenue.

  1. Comply with Tax Regulations

Why make tax regulation stressful when it can be simple? One among the many other benefits of outsourcing bookkeeping is simplified Tax services, preparation and full compliance with tax filing without unnecessary stress.

Instead of worrying about getting your numbers in order, virtual bookkeepers will help you in;

  • Compliance with the tax authorities
  • Avail potential tax deductions
  • Keeping the records up-to-date with the changing tax laws

You can concentrate on providing exemplary service to your customers when someone else takes care of your tax compliance.

  1. For Financial Advice

An experienced financial expert can provide sound financial advice regarding expanding your business or seeking investment opportunities to support your decision-making.

They can offer you advice in;

  • Investment advice
  • Details about the financial reports
  • Market Insights

An ordinary accountant or a bookkeeper can't suggest or advise you on such topics.

  1. Reduce Malpractices

Employee malpractices are a huge problem that we need to address, and it is implausible that a business with employees is immune to some theft or malpractice or fraud.

By outsourcing the bookkeeping functions, this problem can be addressed, and fraud is reflected in the third party's reports.

  1. Access to Latest Software

When you outsource the accounting functions to a professional firm, you can benefit from the Accounting Software Services that they've chosen for your business based on their experience.

 Few accounting softwares in existence are;

  • Netsuite
  • Tally Solutions
  • Quickbooks

This helps you save time and money trailing packages that are not suitable for your business. It also means that you don't need to learn new software or service for your business.

Why choose Jaxa Chartered Accountants?

We at Jaxa Chartered Accountants understand that every business is different. But every business needs expert financial advice and accountancy of its own. With over 15 years of experience, our accounting and auditing experts will guide you at every corner of your business, be it decision-making or tax compliance.

We offer a wide range of services, including Auditing, Accounting, Management and Software Consultancy, focusing on business excellence and professionalism.

Contact Us, to avail and know more about our services.