Why Outsource Accounting Services Is Better? Each one of us starts a business enterprise, small, medium, or big with the main objective of making money and seeing a positive bottom line. We may have the best of products and services, the best of employees and other assets.
However, we need to ensure that each and every dollar that is coming into our business and going out must be recorded. That is what good accounting practices are all about.
Most enterprises have for ages believed in having an in house team of accounting professionals. However, this tendency and belief system is changing slowly. We are now moving to the world of outsourcing accounting. Is it the right decision?
According to experts, yes it is and therefore it would not be a bad idea to list down some of the main reasons why it makes sense even for small firms to outsource their accounting processes as much as possible.
Quality human resources comes with a high cost attached to it. It is therefore, quite natural for entrepreneurs to ensure that they make better use of their time and also the time of their employees.
No pragmatic businessperson would like a significant chunk of their employees to get bogged down with day to day accounting jobs and other related matters.
While accounting is important, in modern days, it makes better sense to hand over the whole thing to qualified, experienced, and professional third party accounting companies. They will be able to do the job and release valuable human resources for more productive works.
As an entrepreneur, there is nothing wrong on your part to find out ways to cut down costs that are legally allowed and permissible. When you outsource your accounting tasks to a third party service provider, you will be able to prune down the size of your staff.
You need not spend money on a full time or part-time accounting staff because there are better and cheaper options available elsewhere.
You can use the money saved for marketing expenses or recruit people who can bring in more business, improve productivity, and lead to an improvement in the bottom line of your firm.
Small businesses are highly susceptible to various types of in-house fraud. Firms with less than 100 employees, according to some research figures suffer an average fraud of around $147,000 each year. This can easily be reduced or even completely prevented when you decide to hire professional accounting service providers.
There are many such accounting firms that are trustworthy and they have systems, procedures, protocols and practices in places. These could help in completely ruling out fraud and a significant amount of money can be saved by small and medium-sized business houses.
When you go in for outsource accounting services to a reputed, proven and professional accounting firm, you are actually handing over your accounting tasks to a group of experts. These professionals are well versed with the modern forms of accounting and they also have updated information about the various tax codes and laws.
Therefore, as a small and medium business house, you and your team can rest assured and be sure that you are always on the right side of the law.
These accounting firms earn their bread and butter through their professional services and therefore you can be sure that there will not be any slipups or wrong representation of the tax codes of laws.
You can avoid being penalized and also avoid end up paying huge fines and penalties for possible misrepresentation of accounting figures and facts.
When you have a team of qualified accountants handling your accounting job, you can be more than sure that your books of accounts will be perfectly maintained. Hiring your own staff of accountants, either full-time or even part-time may not yield the right results.
You could end up having an accounting statement that is incorrect factually and there could be some loopholes as far as exemption and tax reliefs are concerned.
You could end up paying higher taxes or could end up claiming tax relief when there is nothing available as per the rule book. All these can be avoided when you outsource your accounting tasks to a professional group of individuals.
If you look at some of the most dynamic and pragmatic business houses, (small and medium), you will find that they have started outsourcing their accounting jobs to third party professionals. This is an intelligent and correct decision because of obvious benefits and advantages.