How Businesses Benefit From Outsourcing Accounting Services
Several benefits emerge from outsourcing accounting services. When a business is using an outsourcing firm, it benefits from multiple levels of accounting services. The business can have its bookkeeper, accounting manager, controller, and oversight overall for a reasonable cost. If the business wanted all those services in-house, it has to hire three or four individuals, which is obviously very costly.
When a company is smaller, they need a little bit of bookkeeping like transaction processing. They also need some oversight such as making sure internal controls are in place and that their assets are being protected. Occasionally, they need things like guidance and making financial projections. That massively different skill set is hard to find in one person or even two people. Thus, when companies are smaller, it makes a lot of sense to outsource accounting services because you can take slices out of each of those levels and get everything you need from one service.
Outsourced companies work with many different businesses and many different kinds, and so they gain efficiencies. Through that, they can see what works well for previous clients and apply it to your business. They also work a lot with other CPAs, and thus learn from their peers and clients. Thus, there are great learning opportunities when you’re working with multiple outsourced businesses.
Outsourced companies have different levels of people with different skills & expertise. For example, a corporation may need a part-time bookkeeper for one month, and the next month realize that they need an external audit done. That requires them to have internal controls documented and implemented. On the other hand, an outsourced company has experienced people doing both bookkeeping and working with external auditors. That is beneficial because it cuts down the time and cost it would take for the corporation to hire the bookkeeper and then find a CPA with external audit experience.