Also, an in-house bookkeeper would typically only provide bookkeeping services — by outsourcing to an accounting and bookkeeping services company; you can ensure that both accounting and bookkeeping needs are taken care of at a fraction of the cost.
In general terms, outsourcing accounting is represented by services for:
Currently, an increasing number of organizations are resorting to outsourcing accounting. And this is natural, because with the help of a third-party that orders such services, it is possible to quickly establish the functioning of even a complex accounting system, as well as reduce the cost of accounting and its proper support.
There is an opinion that third-party accounting services in the economic sense are beneficial exclusively for small organizations. However, we note that with the competent construction of relationships, outsourcing accounting is quite suitable for medium-sized businesses.
Apart from the obvious time and cost-saving benefits, there are many other reasons why outsourcing your accounting and bookkeeping services makes sense.
Basic bookkeeping mistakes can have disastrous consequences such as penalties, cash flow issues and even an investigation by the Internal Revenue Service (IRS). Outsourced accounting and bookkeeping gives you access to a team of highly qualified and trained professionals instead of just one person taking care of everything. In addition, the outsourced experts will use the latest technology and processes to ensure that your data is accurate and secure.
Bookkeeping and accounting also have an effect on factors that range from the number of employees you need to hire, to identifying the most and least profitable product lines because these experts provide a platform for improving cash flow, driving profits and growing your business.
Services provided by an accounting and bookkeeping services firm are tailored to your specific needs. You get the flexibility to expand or scale back on the services, depending on how your business is growing.
According to the Association of Certified Fraud Examiners’ study from 2012, the most common victims of fraud are small businesses that employ fewer than 100 employees, and the median fraud amounts to an astounding $147,000.
This is because most small businesses don’t have access to a controller or CFO who could spot abnormal activity in the transactional and billing data. By outsourcing accounting and bookkeeping services, you can have multiple people watching all transactions and reports and ensuring increased internal controls.
About the Author: Hemant Grover is a senior manager with Escalon Services, where he specializes in accounting, record-to-report, order-to-cash, procure-to-pay and process mapping, as well as other essential business functions.