6 Advantages of Outsourcing Your Accounting & Bookkeeping
Most startups and small enterprises fail not because of poor product concept or service, but because business owners tend to want to do everything themselves. The problem is, when you focus too much on the details, you end up losing the big picture. Getting caught up with the everyday operations tends to catch you unaware of pressing concerns or problem areas on your business that needs to be addressed.
Being on top of your finances, for instance, can be tedious enough without having to add the burden of proper record keeping and filling. If you can’t handle this important task effectively, you run the risk of noncompliance to statutory requirements and wrong financial decisions. Rather than doing it in-house, it is best to opt for an outsourced accounting firm to handle all your accounting and bookkeeping. Below are 6 advantages why outsourcing is your best bet in handling your business finances.
1. Outsourcing Allows you to Focus on your Business. Novice business owners tend to be micromanagers. It is understandable if you want to be abreast of your cash flows. But you may find it hard to focus on income generating activities when you also have to be the one to manage your finances. This is especially true if you are in charge of other functional areas of management like marketing, human resources, and operations.
When you seek an accounting outsourcing service provider for your accounting and bookkeeping, it affords you to let go of a core function of your business and hand it to professionals who can do a better job than you. When you delegate, you free up time spent on sorting through your finances that can be used to other more productive means. As manager and or owner, your main task is to set the vision, goals, and objectives that your business wants to accomplish to ensure that it grows and becomes sustainable.
2. Outsourcing Saves you Money. Though you might think it is cheaper to do your bookkeeping and accounting in-house, it is actually more cost efficient if you have it done by an outsourced accounting firm. When you do your finances in-house, that is an added person on your payroll. And if you are a small business or just starting up, you want to make sure that everybody in the payroll is contributing to the daily running of your company. By hiring an outsourced accounting firm, you pay a minimal amount only for the services that you need. Simply submit your financial details at a pre-arranged interval and then pay for the work done for that period. No long-term obligation necessary,
3. Outsourcing Gets you Access to an Expert. Accounting outsourcing service provider only hires experts who are knowledgeable about the process of filing and all statutory requirements. Outsourced accounting firms are also abreast not only on any changes on policies and requirements set by the pertinent governing agency but also on industry best practices that will benefit your business.
4. Outsourcing Gives you Access to the Latest Financial Software and Applications. As a small business, you would not want to invest in highly sophisticated software and applications which will only address one area of your business. An accounting outsourcing service provider will have access to these new technologies that you, as a client can benefit from. Outsourced accounting firms invest heavily not only in experts but on information technology that will give value-adding benefits to customers. It can give you peace of mind that your financial information is backed up and stored securely in their system so you will be ready for any eventuality like a surprise audit.
5. Outsourcing Provides you with a Team of Professionals. When you outsource your accounting and bookkeeping, you do not just get access to a bookkeeper, you get a team of professional accountants to handle your financial records. This will ensure the accuracy of all records and proper record keeping and filing. Outsourced accounting firms have redundancy measures that ensure all your financial records are balanced and accurate.
6. Outsourcing Opens your Business to Sound Financial Advice. Because your focus is for your business to grow and be sustainable, you want to be able to get the best sound financial advice you could have. That is where outsourced accounting firms come in. They can provide you data that can help you make informed decisions for your business. Whether you want to downsize to bear up against a financial downturn or expand to ride a bullish market, your accounting outsourcing service provider can give suggestions on measures you can implement that will help your company thrive and grow whatever the economic conditions may be.
As a newbie entrepreneur running a small business or startup can be very challenging. Though you want to be hands-on, you should know when to delegate tasks and when to take control. An accounting outsourcing service provider like Corporate Services Singapore can help you with all your accounting and bookkeeping needs.
