Companies of all sizes, from small startup to behemoths like Walmart, have discussed the benefits they’ve enjoyed after Outsourcing accounting and finance functions. But whilst the practice of outsourcing has grown somewhat commonplace, there are still tons of myths floating around regarding what outsourcing means and the way it can impact your business.
To get a handle on a number of the foremost common myths about outsourcing your accounting, inspect the list below. Additionally, we’ve included one big truth that you simply can take under consideration as you navigate the outsourcing world.
Myth 1: People Will Lose Jobs If You Outsource
The word “outsourcing” tends to strike fear into the hearts of the many staff members, because they often think it means their jobs are being eliminated. But in many cases, that doesn’t happen in the least. Let’s take a glance at a couple of samples of how a business’ accounting function could be operating today and the way that would change if you outsource:
Example 1: The founder handles all accounting functions. This is often the case for several startups, when the corporate founder or CEO takes care of all of the accounting responsibilities, from paying bills to sending out invoices to financial reporting and beyond. But regardless of what proportion a corporation founder enjoys handling the accounting work, likelihood is that strong that they might be better suited spending their time on revenue-generating responsibilities. By outsourcing accounting, the founder can specialise in things like sales, new development, marketing and inventory management.
Example 2: One accountant handles everything. Suppose you’ve got an accountant on board who’s liable for everything finance-related at your business. That person would like to lookout of your firm’s statutory compliance and is curious about creating new accounting frameworks to project future income, but can’t because they’re caught up with day-to-day tasks like paying bills and reconciling MasterCard statements. If you outsource your accounting to a specialized firm, your accountant can specialise in the more high-level accounting responsibilities which will shape your company’s future growth, while the outsourced firm does the minutiae.
Example 3: you use an accounting team that handles everything, but they’re stressed. Many accounting tasks are often mentally taxing for your accounting team members, like reconciling account balances. These sorts of monotonous responsibilities can create stress among your accountants, who would like to be working your internal audit files or creating financial projections. You’ll outsource a number of the more stressful responsibilities to a firm, giving your in-house staff members the chance to specialise in more high-level responsibilities. In fact, robot process automation (RPA) might be adopted by your outsourced firm to bring further efficiency to the method.
Myth 2: Outsourcing is dear
When some people picture outsourced accounting firms, visions of pricy consultants jetting across the country often come to mind, but the truth is that you simply are likely to save lots of a big amount of cash if you outsource. You’ll have access to expert accountants, finance professionals and bookkeepers at a way lower cost, without compromising on quality. You furthermore may save on infrastructure fees, employment taxes and other overhead costs since these experts won’t get on your payroll, but will instead be used by the outsourcing firm. You’ll buy the time and services that you simply need, and you’ll change that if your business grows.
You’ll also save time since somebody else is going to be handling your finances. This may allow you to focus not just on financial projections and taxes, but on scaling your bookkeeping services in denver. Additionally, you’ll economize by only using the outsourced firm the maximum amount or as small as you would like, instead of hiring a replacement team of employees to handle tasks that come up as your business grows.
Myth 3: It’s Risky from a Cyber security Standpoint
The thought of delivering your financial information to a different company are often daunting. However, outsourced finance and accounting services can put measures into place to handle the intense data security threats that exist, and that they typically invest in impenetrable and expensive security systems. This will help mitigate the chances of knowledge breaches and compromised security programs.
In addition, these firms invest in cutting-edge technology and software to be competitive, and if finance isn’t your core function, this sort of investment doesn’t add up for you to require on by yourself. With an outsourcing partner, you’ll enjoy having access to the newest technology at no additional cost.
Most importantly, the technical side of outsourced accounting services ensures that your data is out there on the cloud for you to access at any time. Meaning that although your financial information is well protected and secure, you won’t ever have any problems accessing it, regardless of what time of day you would like to ascertain it.
Myth 4: If You Face a Down Economic Period, You’ll Still needs to pay the Outsourced Company
The truth is that with outsourcing, you simply buy the services you really use.
As situations change economically, companies tend to shift their workforces, which may be a challenging and resource-intensive process. But since the responsibility of managing the talent assigned to a project lies with the outsourcing company, you are doing not need to make any decisions regarding its internal workforce or pay to retain that company’s staff members, nor will you’ve got to buy staff members who do not have any work to try to.
If you need fewer hours from the outsourced accounting team, you merely got to ask them to scale down the services and you’ll be ready to pay them a smaller amount. As soon as you’re able to reduce up again, give them the word and you’ll be ready with a totally functional team once more.
Myth 5: Managing the Outsourced Firm Will Take Time faraway from Growth-Generating Activities
You may picture yourself having to spend hours on the phone training an outsourcing firm, but really, you’ll truly release tons of your time by outsourcing. With reliable back-office support, you’ll stay focused on value-added, revenue-generating tasks like business development and making strategic business decisions. Because the outsourced company takes care of your financial needs, you’ll handle the tasks more important to growing your business.
Many companies say that they see sales soar once they start outsourcing, because their internal employees are ready to specialise in responsibilities besides handling the online accounting services in denver.
Truth: You’ll Gain Compliant Practices
A specialized outsourcing company will remain updated with the newest financial and compliance policies and other accounting rules. That way, you won’t miss important tax or accounting updates, compliance regulations or potential changes on the horizon. You won’t need to sift through each day’s financial news to seek out this information — the outsourced firm will roll in the hay for you.
In addition, if you’re ever under the scrutiny of an auditor, your outsourced firm will have the power to manage the audit, generate the acceptable records and follow through to completion.
Overall, outsourcing your accounting function can deliver new benefits and strengths to your company, while ensuring that you simply have time to finish the revenue-generating responsibilities necessary to stay your company growing.