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Choose External Business Accounting Services – Why & How?

Last updated: 17 Jan, 2022 By | 6 Minutes Read

Today’s business owners are encountering greater expectations regarding financial transparency and compliance concerning changing government policies. In addition, businesses have to take care of their day-to-day responsibilities and juggle complex non-core tasks such as accounting, finance, and risk management. Thus, they are trying to get more things done despite inadequate resources.

This has led businesses, both large and small, to start looking for external assistance as their most preferred solution, especially for accounting. In fact, many business owners have realized that taking external sources can provide a better opportunity to acquire quality accounting services from experienced professionals without bearing the cost of an in-house team.

Hiring an accountant with a suitable skill set is challenging, especially for start-ups, entrepreneurs, and small-scale businesses. And even if one is successful at finding the right person, the issue of affordability can abrupt things.

Why should you consider giving your accounting work to external professionals?

Though people may say that accounting and bookkeeping must be conducted internally, think carefully about whether you have the required skillset and experience to get this job done effectively. Also, does your in-house staff have enough expertise to handle the piling accounting work?

It is for these reasons the directors of so many companies have recognized the additional advantages that the external accounting experts can offer. Hence, keeping that in consideration, let’s check some important reasons why you should hand over your accounting tasks to a BPM firm:

Cost Saving

Earlier, it was believed that hiring external accounting experts could lead to an additional unnecessary cost from the business point of view. But later, when entrepreneurs and business owners started taking their assistance, they found out that actually, it’s the opposite. Their expenses reduced and most importantly the quality of the work increased.

Furthermore, by handing over the accounting work to external experts, businesses saved money on paying salaries, taxes, supplies and gained other benefits. Besides that, they only paid for what they needed. The productivity cost that comes with hiring a full-time employee was also zero.

Freedom from the Tedious Hiring Process

If you consider the big picture, hiring in-house employees can be a challenging and tedious task. It takes many resources to take care of the complete process, starting from building a hiring strategy, choosing the suitable applicants for the interview, and getting done with all the training. This takes up your crucial business hours as you will need to commit time for all these things rather than focusing on your revenue-generating operations.

Spending time or spending money is the same thing nowadays. However, some companies do not realize that while they might be wasting their time searching for an account, they would also be wasting their money. However, this time is also costing them money. So here as well, they are encountering additional expenses.`

Save Time & Utilize it Better

As your business develops, you will realize that you are spending more time managing money than scaling your business. Here, giving administrative tasks like accounting and bookkeeping to external accounting professionals can allow you to focus your energy on building and executing business strategies entirely. This can significantly help you derive more revenue and build strong relations with your customers and clients.

Accessibility to Industry Experts

External accounting service providers can offer you the accessibility to hire highly knowledgeable accounting professionals at an affordable price.

The reason being, these BPM firms have to make sure that they are continuously improving their skills and qualification in order to stay ahead in today’s competitive market conditions. Big accounting firms also have access to the latest training modules and courses to participate in regularly.

Moreover, this ensures your availability to not only one but a complete team of accountants who are specialized in different tasks.

Easy Business Scalability

These accounting service providers have the right tools required to scale your business in a significant manner without any hindrances. For example, if your companies’ accounting tasks have exceeded the limit that a single employee handles, you can easily acquire an extra workforce. You don’t need to conduct a rigorous hiring process just for one employee, especially if you need him for a temporary period.

Also, external accounting firms charge on an hourly basis which means you can quickly increase or decrease the hours without any problem.

Implementation of Automation-Powered Technology

Most businesses utilize automation software for accounting in order to save time. And besides saving time, it also minimizes the risks. Automated accounting does not make human errors. Furthermore, real-time reports can be obtained via automation software. They help in recognizing potential mistakes at an early stage and rectifying them. This also reduces the probability of any internal fraud. Many accounting service providers make use of up-to-date automation software like QuickBooks, Sage, Xero, and others. But if your accountant is still functioning using only excel sheets, you seriously need to reconsider things.

Valuable Advice 

External accounting experts will provide you with the best advice on how you can make the accounting process more efficient. That’s because they work with multiple clients from all types of industries and can propose an excellent solution to a situation they may have already encountered.

Also Read: The Ultimate To-Do List for Bookkeepers – Experts’ Opinions

Accounting functions that can be handed over to external experts

To make the best use of external accounting service providers, you should clearly know the services you require assistance with. Let’s check various services which can be handed over to these accounting professionals. :

    • Payroll
    • Caveat
    • Bookkeeping
    • Invoice approval
    • Tax Filling
    • Expense allocation
    • Customer billing
    • Online payment approval
    • Accounts payable
    • Check processing
    • Accounts receivable
    • Handling of vendor inquirie
    • Controller
    • Order management

Choosing the right external accounting service providers

Different businesses have different needs. Therefore, it is crucial to know which service provider to choose for establishing compatibility. Here are some points to consider before hiring an external accounting service provider:

  • Should have a proven track record.
  • Should perform well on KPIs set in accordance to your firm.
  • Quality workflow and smooth communication between the internal and external teams.
  • Ability to handle all kinds of tasks
  • Should fall in your budget.
  • No hidden charges.

    Conclusion

    Handling accounting probably wasn’t the reason you started your business. As the owner, your concentration should be on growing your business and keep your customers satisfied. Therefore, having an external team of professional accountants at your disposal can furnish you with the advantage of productivity and saved expenses. Professional accountants can recognize red flags at an early stage and take the required measures. Moreover, they will take care of all the things listed above.

    At Cogneesol, we are a team of professional and experienced accountants providing top-quality virtual bookkeeping services to clients worldwide. To learn about our services and pricing in detail, talk to one of our experts today. Call us at +1 646-688-2821 or send your queries to info@cogneesol.com

    Also Read: How Today’s Accounting Numbers Help You Make Better Business Decisions

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