Not just accounting firms but even individual chartered accountants outsource bookkeeping, accounting, payroll, taxation and financial reporting to reliable firms. Around 80% of accounting firms prefer outsourcing against large in-house teams. But why? How does outsourcing help them achieve growth and benefits? You must’ve seen the benefits of outsourcing iterated, and reiterated in numerous blog posts. This post is going to give you hard statistics on why you should consider outsourcing bookkeeping and accounting as the next biggest move!
SMEs: What are your competitors outsourcing?
- Outsourced payroll processing is at #1. Outsourced payroll processing helps companies uphold employee satisfaction with seamless and smooth processing. Outsourced payroll processing helps you strategically drive satisfaction levels of your employees – your biggest asset.
- Outsourced Accounts Payables falls next in line. A swift Accounts payables process can actually help you save money! Cash in on early-payment discounts and festive offers from all your vendors. As a business owner, it is an onus to follow up on such perks. But when outsourced, your AP works super smooth and helps you save money.
- Companies and organizations unanimously agree that Outsourced Accounts Receivables is a downright boon! Cash-flow-is-king goes without saying and timely AR is the key to maintaining bottom line!
CAs and Accounting Firms: Top 5Statistically proven reasons to outsource
- Increase in working capital: FAO (Finance and Accounting Outsourcing) has helped increase working capital by 25%
- Up to 40% costs savings againstthe cost of in-house accountants.
- An increase of 30% in timely & accurate delivery
- Outsourcing reduced review times for CAs and Accounting Firms by 60%
- 75% Accounting firms and CAs agree that they have more time to focus on their client relationships and business in general.
Have you Tried outsourcing?
A few of the prospective clients we approach, i.e. Chartered Accountants and Accounting Firms fall in the criteria we call “once-bitten-twice-shy”.
They’ve bitten the rotten side of the apple called outsourcing and hence can’t get themselves to give it another shot. Have you had a rotten outsourcing experience ever? Here’s where they (and perhaps you) have gone wrong.
There are 5 things you need to ensure before you outsource bookkeeping and accounting:
- Your partner company’s years in business: This matters! While we don’t mean to discourage you from liaising with new entrants to the FAO industry, the number of years in business and supporting testimonials is direct proof of the company’s reliability.
- Information security practices: It pays to associate with a company with established international standards of data security. Your clients’ financial data is highly private and you should demand that your outsourcing partner demonstrate their data security practices.
- Get a sample: Most companies do offer a free sample! Yes, so don’t stand back and just hand the contract without getting a taste of the quality of work being delivered.
- Setup an SLA: SLAs can work really well in determining the quality of the arrangement and association that ensues. Get comfy with your outsourcing partner and be transparent about the volume of work, expected TAT, error-thresholds, monthly retainer fees etc. This’ll eliminate unpleasant surprises.
- Cloud-ready: You must use EDI, so check whether your partner offers cloud-ready accountants. Check for QuickBooks Advisor level, XERO certifications and other such badges. In today’s modern world, it is in your best interest to hire accountants who have first-rate, hands-on experience with cloud-based bookkeeping and accounting softwares.
There are other great pointers that we’d love to add in here. But if you’re faced with a dilemma in terms of outsourcing bookkeeping and accounting, payroll processing or AP & AR, we’d love to connect with you and offer you a free 30-minute session with our advisor.
Even if there is an imminent roadblock in your line of business, our experts would be more than happy to assist you with your questions and inquiries. Whether about outsourcing or our service platter, feel free to call us on 1-516-717-2049