Understanding KPIs: What Should Your Business Be Working Towards?

5 Reasons Your Business Needs to Outsource the Accounting Services

Accounting is a crucial element of any business. From preparing the financial statements to ensuring the taxes are paid on time – an accountant is responsible for every finance-related function of an organization.

Hence, the job of an accountant, besides being impactful is also a responsible one. In recent times, this very business function is being outsourced by various small and large business organizations a lot!

Facts have it – one of the most outsourced business activities is accounting, to be accurate 37% of businesses outsource accounting to third-party agencies or organizations. The question is, why do businesses prefer to outsource their accounting services? So, here’s your answer!

1. It saves your valuable time and labor

The most important reason why businesses outsource their accounting services is that it is very time-saving. When a business decides to outsource their accounting services, they actually can use the freed-up time into doing something more productive.

Instead of spending time on maintaining various books, records, ledgers, and accounts the human resource can now invest this time managing other areas of business.

It is very important to ensure optimum utilization of the resources for a business to grow. And when you outsource this business activity, you are actually aptly utilizing the most essential resource – time and effort!

2. Costs are reduced by multiple times

The job of CPA or accountant is very comprehensive. They not only prepare the books of accounts but also ensure that it follows the complex accounting standards. Filing returns, preparing the financial statements, maintaining financial soundness – these are some of the many tasks performed by an accountant.

Hence, the salary paid to an employee for carrying out these many tasks is also quite high. Outsourcing, on the other hand, proves to be a lot cheaper than an in-house employee. Therefore, by outsourcing the accounting services, the businesses are able to save a lot of funds.

3. Increased accuracy

An accountant has to juggle many tasks – all while making sure all of the duties is performed with due accuracy. To err is human and when the in-house employee manages other functions alongside, he is bound to make mistakes

However, the probability of errors is reduced when a company outsources its accounting services. That is because when the third party agencies have professionals in their team whose core job is to manage accounts. It does not just make the accounts of the company more reliable, but also enhances public confidence.

4. Reduced frauds and misstatements

Accounting is one such business sector that is highly prone to fraud. Even with the trusted employees of the organization, there is always a risk of embezzlement of funds, misappropriation of cash and goods, etc.

Especially for small businesses, the risk of misstatements and frauds are even higher. But when you let a professional firm manage the accounting activities of your organization, the chances of frauds taking place is highly reduced. The firms enable proper fraud protection control, thereby alarming the business beforehand if they spot anything unusual in the books. 

5. Expertise is highly amplified

The last and perhaps the most significant reason why businesses choose to outsource accounting services. When a business organization employs an accountant, it may not always be possible for the accountant to be adept at every task – return filing, book-keeping, etc.

On the other hand, when a business opts to outsource their accounting services to a professional firm like Taxopia, all their jobs are done at the hand of a professional accountant. As a result of this, the company’s accounting services become all the more justified, and the overall image of the company is enhanced.

Over to you…

Accounting can be termed as one of the most essential departments of a business. Not only does this department handle finances, but it also plays a pivotal role in ensuring the company’s overall reputation.

While we have cited the top 5 reasons why you need to outsource your accounting services to a third-party agency, there are a dozen more. But this should be enough to help you understand how outsourcing can help you multiply your RoI.

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Christophe Rude

Christophe Rude

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