Businesses today are increasingly turning to outsourced accounting services, recognizing the multiple benefits. CEOs, CFOs, business leaders, and owners can now access an educated, qualified team working to help their company run better, grow faster, and increase revenue with an outsourced team of accounting experts.
Compared to establishing an internal accounting department, there are often significant cost savings with outsourced accounting services. However, cost is only the tip of the iceberg when it comes to understanding the benefits of an outsourced accounting team and why more businesses are increasingly utilizing these services.
Why Companies Outsource
Working with an outsourced accounting services team is primarily motivated by cost reductions, a desire to focus on core business tasks, and the need to address capacity constraints. The four key outsourcing trends are:
- Cost-cutting: This is at the top of the priority list for most businesses. Many industry leaders say that cost reduction is an auxiliary benefit to goals such as enhancing agility or improving the quality of service.
- Cloud and robotic process automation (RPA): Cloud and RPA technologies enable users to automate any process via a web-based interface and are becoming increasingly important in almost all types of transactions for businesses of all sizes.
- Underpowered supplier management: Successful businesses invest more in developing their supplier management capabilities through RPA and outsourcing to get the most out of their service provider ecosystem.
- Agility: Changing business conditions, visa limitations, and higher client demands are forcing businesses to become more adaptable. Outsourcing will continue to accelerate as companies learn to work in a world where speed, quality, flexibility, and affordability are more essential than geography.
Bottom line: Outsourcing services can generate revolutionary change and improve business results.
Benefits of Outsourced Accounting Services
Cost-Effectiveness
Hiring a reputable firm like Windes that offers outsourced accounting services is typically less expensive and more cost effective than hiring in-house financial experts. Businesses can avoid the overhead costs of hiring an employee, such as paid time off, health insurance premiums, retirement contributions, paid vacation and sick days, and workers’ compensation.
Accounting tools are necessary for any accounting professional to complete their job. Purchasing and maintaining specific equipment and software for your in-house personnel can be costly. These expenses can be reduced by outsourcing.
A Proactive Approach
Another advantage of having an outsourced accounting team is that they are highly trained accounting professionals who can uncover red flags and discrepancies before they become issues. Understanding potential problems with expenditures and cash flow can help leadership make sound financial decisions. Additionally, having an entire team, rather than just one or two internal employees, reduces the danger of errors and incorrect financials. This is especially true for small firms and startups, whose employees often wear several hats and perform various unrelated job functions.
Reduced Fraud & Errors
Errors and fraud can occur in small to medium-sized companies with only one person in charge of accounting. It is easy to overlook erroneous calculations or intentionally tamper with the books. Fictitious expenses can go unnoticed for months, if not years, without proper oversight.
With outsourced accounting services, trained accountants review your transaction processing and reports, increasing internal controls. A committed team of accounting specialists is significantly more likely to notice an abnormality than a single person or a small in-house accounting team who may not be up-to-date with the latest regulations or technology to adequately and efficiently position your business for growth.
Look to Windes for Advisory Services and Your Outsourced Accounting Needs
At Windes, our Outsourced Accounting Services are designed to augment your staff, enhance your finance function, and provide a platform to drive profits, improve cash flow, and grow your business. It’s not just about keeping your business accounts in order; it’s about having a team of trusted experts on your side. Let Windes focus on your financials so you can focus on your business.