How to Outsource Your Accounting Team, a Foolproof Guide
It’s common to dismiss outsourcing an accounting team as a viable strategy—so, if you’ve ever scrapped the idea of outsourcing from your list of prospective options, you’re not the first and you won’t be the last. Many companies perceive outsourcing as a luxury only afforded by larger corporations. However, outsourced accounting can benefit all companies, and yours just might have the most to gain.
In today’s ever-changing business landscape, your business might be lost in a maze of financial records, have a burned out staff, and have poor time management that’s taken even further down by inadequate processes. You know that in order to have a flourishing business, you need to have an effective and efficient accounting department.
The last few years have resulted in many businesses outsourcing their accounting teams, but they have done so for different reasons. While some chose to outsource to complement their current accounting functions, others chose to build one altogether from scratch. For some businesses, they are more likely to outsource their accounting teams after they have exhausted other options. If you are considering employing outsourced services but haven’t done so previously, you might have some reservations about its effectiveness compared with maintaining an in-house team.
Continue reading to discover why outsourcing an accounting team can be more effective than other options and how choosing the right partner can be beneficial to the growth and success of your business. Our foolproof guide to outsourcing your accounting team can help you understand the benefits of outsourcing and help navigate you through the process.
Advantages of Having An Outsourced Accounting Team
Can Help You Reinvest in Your Business
With outsourcing, you can free up both your time and money to reinvest in yourself. Instead of just cutting costs, think of the endless possibilities that come with having extra capital! You’ll be able to choose which projects or activities will give you the highest returns – whether it’s long-term investments or fast-tracking growth through sales and marketing. Also, by freeing up resources, your team can focus on more strategic initiatives without being bogged down with tedious tasks.
Eliminates Prohibitive Expenses
The cumulative cost of all the expenses associated with a new employee, such as remuneration, benefits, operational overheads, and equipment costs, can be exorbitant at times and could even become prohibitively expensive. However, by outsourcing, it eliminates the financial burden and affords your company the flexibility to distribute those resources to other necessary business expenses.
Elevates Your Business Growth
Elevating the growth of your business should be a top priority. It can be disheartening to invest energy into duties that take up too much time and effort. To ensure more focus on the integral aspects of your organization, you can delegate these processes to dependable accounting professionals — freeing you and your team from this burden so they can concentrate solely on propelling the business forward.
Does My Business Need An Outsourced Accounting Team?
Before you are able to make an educated decision on outsourcing, you must determine if this is right for your business by doing the following:
- Taking a closer look at the existing accounting processes. It’s important to determine how much time and resources your business is dedicating to these tasks.
- Determining if your accounting tasks are growing in complexity and frequency.
- Determining if your existing processes are contributing positively or negatively towards achieving broader goals.
- Identifying the level of expertise and specialized knowledge required to handle your accounting tasks.
- Evaluating the potential risks associated with your existing accounting processes — including errors, fraud, and compliance issues
If you have determined that outsourcing could be an option. Here are some steps that will help you on your journey:
- Examine the potential pros and cons of outsourcing — from any loss of control to gainful advantage.
- Assess the potential impact of outsourcing on your internal operations and workflows.
- Evaluate how outsourcing will integrate with your existing systems and processes, and any potential disruptions or conflicts that may arise.
- Analyze the potential cost savings and return on investment (ROI) associated with outsourcing.
Identifying Accounting Tasks to Outsource
Congratulations! You have made the decision that outsourcing an accounting team is the right step for your business to take, and now you will have to determine what aspects of your accounting process will need to be outsourced. There are many different jobs that fall under the umbrella of accounting, such as recording transactions, making reports, and preparing taxes.
Here are some common accounting tasks that a business might consider outsourcing:
- Bookkeeping services provide an easy way to track purchases, sales receipts, and payments so you don’t have to worry about missing any important details.
- Payroll processing professionals help make sure employee paychecks are calculated correctly while ensuring taxes remain compliant with ever-changing laws.
- Accounts payable specialists take care of vendor invoices and payments while accounts receivable experts collect customer payments in a timely manner without hassle or delay.
- Financial reporting teams analyze balance sheets, income statements, and cash flow statements using specialized knowledge of accounting principles so your business can stay financially secure in the long run!
Choosing The Right Outsourced Accounting Partner
When it comes to outsourcing, making the correct decision can be the difference between success and failure. To guarantee you’re taking all of the necessary steps for a successful outcome, think about the following:
- Analyze your needs: Identify what tasks need to be outsourced and which skills are required for those jobs. When you know what you need, you will put your business in a better position to find a provider that offers exactly what you need.
- Explore available providers: Look for providers that specialize in what you need and seek proven results from past clients.
- Check references: Ask previous clients their opinion on the provider’s services — this will give you an insight into how reliable they are before committing.
- Assess cultural compatibility: Make sure that their work ethic, communication style, and values line up with yours as a business or organization.
- Test it out first: Start off with a small project. If things don’t go according to plan, then at least not much time or money has been wasted on a provider that isn’t right for you.
Are you ready to take your business to the next level? With years of experience and an elite team of professionals, the team at CFO Hub understands what it takes for companies to succeed. Our strategic finance and technical accounting services are designed specifically for small-to-medium sized businesses — so no matter where your company currently stands, we have a solution that will get you moving forward. Investing in outsourcing is one surefire way to make sure your business hits its full potential. Contact us today and start unlocking the success of tomorrow!