As business owners, we are constantly looking to outsource more things. If you outsource your payroll, you almost certainly outsource other stuff as well. As a business owner, you likely hire a CPA to take care of taxes for your company. You might even outsource your HR and IT. Today, let’s talk about the eight benefits of outsourcing your accounting and finance function.
Benefit #1: Access to finance and accounting expertise
You should outsource your accounting and finance since it lets you get the specialized knowledge your company needs.
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Outsourced businesses employ highly trained accountants and finance professionals. They don’t have distractions like other folks. They may see a variety of businesses and can then bring the best practices back to you.
Most organizations have a fluctuating dependence on a bookkeeper, accountant, controller, and CFO levels. You can’t hire all of these. Outsourcing accounting and finance allows you to receive services as needed. Although you will need limited CFO and controller services, you could require additional accounting and bookkeeping services. Supervision means that all accounts are correctly managed, that allows you to progress faster and even more robust.
Benefit #2: Cost savings
Another significant benefit of outsourcing your accounting and finance is cost benefits. In terms of employees, all of the costs must be considered. These include salaries, benefits, taxes, and unemployment.
Because labor costs are one with their highest expenses, business owners are looking for ways to cut down on them. So, if we look at the advantages of outsourcing, there are efficiencies to be gained. When companies outsource accounting and finance work that should be completed, they’ll get access to our expertise and quality and additional cost savings.
Look at outsourcing the accounting and finance department to save lots of money.
Benefit #3: Avoid turnover and time-off issues
Outsourcing your accounting and finance processes will also allow you to avoid turnover problems and staff time off. When you are a smaller organization, each team member is essential to the success of the business. When a team member is sick or on vacation, or in the worst-case scenario, they leave, it causes anxiety and stress for remaining employees. If you outsource your accounting and finance to a external company, that becomes the company’s problem.
That’s not your problem. If the individual assigned as contact has gone out, their team will help you instead if necessary.
And the price tag on turnover is substantial when someone leaves your company. Sometimes you may need to pay a recruiter fee, and it might take longer than usual to find a very good candidate.
Then you want to train them. If they are not the right person, you will need to start over again, that can be an unnecessary headache. Outsourcing accounting and finance shift those duties from you to enable you to focus on creating more revenue.
Benefit #4: Achieve Time Savings for the Business
Business owners can save time by outsourcing the accounting and finance function.
Look, we all have busy lives. Most of us are focused on the marketing, sales, and procedures of our companies. The outsourcing of accounting can release time so that you don’t have to manage accounting and finance employees. You don’t have to provide your employees with guidance. The outsourced staff are experts and with the capacity of helping both the company and themselves. This brings about a higher level of resources among you as an owner and other parts of your enterprise.
They really know what will have the most significant impact you, and their goal should be to save lots of you time by giving you the information that helps you make better choices to grow your business.
Benefit #5: Gain Flexibility To Meet Business Needs
The fifth good thing about outsourcing your accounting and finance is having more flexibility within the organization.
If your team has only 2 or 3 people, you need to ensure they are always busy. Alternatively, if they may have too much to work on and not enough time, it can be problematic. They don’t have the overall flexibility to defend myself against new things as your business grows or matures. It can be frustrating, and you’ve got to wait.
For example, recently, PPP was a need that increased accounting teams’ workloads to higher levels than these folks were able to handle. Many had to seek external help take this on.
Business owners who outsource their accounting and finance can flex, pivot, and plan nimbly.
We can increase the number of folks working on your project, and because we’re not bound by time or cost constraints, we’ll have the ability to deliver what you wish when you need it. Flexibility is the reason why you should outsource your accounting and finance function.
Benefit #6: Ability to Scale Up or Down
The sixth good thing about outsourcing your accounting and finance is the capability to scale up or down quickly. Look, business growth will come in lumps, of course, if you’re growing a newer company, it can get before you.
Businesses which may have rapidly grown their business are often suffering problems with backend operations. This can slow down growth and cost the business money.
There have been times when the economy was on an upswing, but there have also been periods where it slumped. Examples include the recession in 2008 and the impact of COVID-19.
In times like this, businesses may try to do layoffs, and you’re trying to be better with your money. But you don’t want good people to leave the company because employees remain difficult and expensive to switch.
Outsourcing accounting and finance gives you the ability to scale up to take care of an increasingly significant workload when the business hits its peak.
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The flip side of that is the fact if it becomes more challenging to run the business, you can scale back and not worry about having as much employees or capacity. This enables companies to scale up and down quickly.
Benefit #7: Access to Better Tools & Processes
The seventh benefit about sourcing your accounting and finance functions are better processes and tools inside your organization.
A small organization is looking to keep overhead costs minimal. By outsourcing that function, you can save money on heightened tools to improve your business. The cost of each tool is spread amidst many clients. Look, it almost feels as though big corporations have unfair advantages. They have access to great tools and information.
As a little company, you’ll be trying to piece things as well as band-aids and duct tape. You must be agile and also have grit. Should you outsource the accounting and finance function, not only do you access the tools, but accountants will use these tools and bring processes into the organization. This is merely one way of building efficiency in both your business and team.
Benefit #8: Business Intelligence
So, the eighth and final benefit of outsourcing your accounting is business intelligence.
The score and the stats are important, however they don’t win the game for you.
Let’s be honest here; it’s challenging out there. There are a lot of solid opponents (your competitors) competing together with you for business. You are not competing against a single opponent like you would in sports. So you’d need to be locked in. You have to be tight.
This is where business intelligence comes in handy. Developing a coach on the field can help you win. It’s like that in case you have business information to help you make big decisions. Business intelligence makes a difference.
You’re not going to get it from your bookkeeper. You are unlikely to get it from your controller. This way, you’re able to analyze what happened and just why and how you are going to make future adjustments and reach your goals. Business intelligence is often overlooked when contemplating the benefits of outsourcing your accounting and finance.
