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How To Choose Best Accounting Outsourcing Companies?

Last updated: 12 Jul, 2021 By | 6 Minutes Read

Outsourcing today is considered to be the magic mantra and a cure for most problems facing businesses today, regardless of its size. There are many sides to the issue. Not getting time to focus on your core activities? Outsource back office functions. Not having the means to invest heavily in software and hardware? Outsource accounting and data processing activities. The opportunities are almost limitless. This is the primary reason why the outsourcing industry is at present growing exponentially and in the modern business environment is no less in size and stature to the mainstream sectors.

The outsourcing industry includes a wide range of back office functions such as different aspects of the insurance industry, IT, data entry and processing and paralegal services. But the most important by far is accounting and bookkeeping services. This is because, by outsourcing, businesses benefit from substantial savings in time and costs that can be better channelized to the development of primary goals and objectives. Further, accounts are processing data generated in business operations in fixed fields and thereby does not require any of your discretionary powers to arrive at the final result.

Outsourcing is not a one-off decision like a simple sale or purchase – it has to be viewed from a long-term partnership perspective between you and the agency. Hence a great deal of thought and due diligence should go into choosing a top quality accounting outsourcing company.

What are the variables that need to be analyzed in this regard –   

  • Experience and track record in providing accounting services – It is not enough if you have a contract with an outsourcing agency only, you have to ensure that they have the required professional expertise in bookkeeping services. Accounting is an intricate task best left to accounting services company with good track record and long years of experience in this field. Research the market and check their credentials and reputation. Go through the list of companies that already avail their services. Check testimonials to get a clear idea of their capability. Remember, it is your company accounts that are on the line and all loose ends must be tied up before awarding a contract.
  • Services offered – When you decide to outsource, you should do it comprehensively. Spinning off a part of bookkeeping only and keeping the rest for in-house processing will only lead to complications in consolidation and finalization of a balance sheet. Hence, ensure that the outsourcing agency can take full charge of the total accounting requirements of your business. Complex heads such as accounts payable and receivables, bank and credit card reconciliation and maintenance of records should be on top of the list. Sales tax computing and filing of returns, as well as the calculation of other taxes including business and personal tax, should also be taken care of by the agency.
  • Software used and data security measures adopted – This is very important – make sure that the accounting outsourcing company that you ultimately choose uses the latest in accounting software. You can then be assured of the accuracy and speed of data processing. It should also be compatible with the one you have adopted in your business. This will help in seamless transfer and upload of data, invoices, and reports between the outsourcing agency and your systems. Further, all updated reports should be available on your Internet-enabled device so that you can access your financials at all times before taking any crucial business decision.
    Along with software, your concern should also be of data security. The agency must have layers of security measures in place to protect the confidentiality of your company accounts. Transfer of reports and data must be over highly secured and encrypted lines.
  • The lowest need not necessarily be the best – Just because you have got a fairly affordable offer does not mean that you have got the best in this line. Do not compromise on the quality of output simply to save a few dollars in the long run. Weigh all the other crucial pros and cons before arriving at a decision with this factor being at the bottom of the list.

These are some of the points that you should focus on if you have to choose a top quality company for account outsourcing.

One of the leading accounting services providerwith long years of experience in this field and a proven track record is Cogneesol. Contact us at info@cogneesol.com to know more.

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