8 Benefits of Outsourcing Accounting Services

Many small businesses fail within their first year of operation because the owner tries to do everything on their own. Running an effective company requires diligence and focus, and accounting is often a complicated, time-consuming task that takes more work than a single person can do. 

If you are running a business and want to expand or just find a more efficient and more effective way to run your company, there are many benefits of outsourcing accounting services to consider. Not only can they help you be legally compliant, but outsourced accounting services and bookkeeping services can also help you grow your business, achieve your goals, and set you up for long-term success. 

Read on for eight of the biggest benefits of outsourcing bookkeeping and accounting.

Key Takeaways

• Outsourcing your company’s accounting duties can save your company money.
• External accounting firms can offer expertise and skills that you may not find internally.
• Outsourced accounting teams may have better security and other resources .
• Efficiency and cost reduction are some benefits you may find when hiring external accountants.
• External accountants are able to scale up their services and grow with your company as you expand.

In this article, we’ll cover:

• Benefits of Outsourced Accounting Services
• Conclusion
• Frequently Asked Questions

Benefits of Outsourced Accounting Services

Reduced Overhead Costs

Although it may sound counterintuitive, one of the main benefits of outsourcing accounting is that it can actually save your business money. If you were to keep an accountant on your payroll, you would be paying full- or part-time wages, along with benefits, payroll taxes, and other expenses, whereas hiring an external accountant is a much more straightforward expense and a lower cost overall. 

Rather than keeping an in-house accounting department on staff, consider utilising one of the FreshBooks plans available to you. There are a wide variety of accounting services, bookkeeping services, and plans to choose from, so you can customise your company’s accounting plan in a way that will suit your needs. Learn more about Freshbooks accounting services and start your free trial today.

Access to Expertise and Specialized Skills

When you hire an external accountant, you will have access to their specialised skills and the wealth of knowledge they have accumulated over the years they have spent working in the field. 

The benefits of outsourcing finance and accounting services include having somebody to handle taxes, help manage assets and even assist in making critical business decisions, accountants can become invaluable to your business. 

Accounting firms have likely worked with many businesses like yours and have seen it all, including the successes as well as the mistakes that other companies have made. This experience makes them well-equipped to apply their knowledge to your business. Mazuma is one of the top online accounting firms in the UK that caters to all accounting needs. Mazuma is HMRC recognized, has excellent reviews, and is dedicated to providing stress-free accounting services to small business and start-ups.

Improve Data Security and Confidentiality

External accounting companies will have the most updated knowledge of security procedures and data protection standards. This knowledge is especially important in the current age, with most services and transactions occurring online. An accounting company will have access to the best cybersecurity technology, ensuring you avoid data theft. 

Eliminate Staffing Concerns

Because they work outside of your office, the external accountant will not have a personal stake in any decisions they are making, ensuring full compliance with legal requirements without awkward interactions or social obligations getting mixed into their decision-making process. This eliminates certain biases that could be harmful to your business moving forward. 

Outsourcing over hiring an in-house bookkeeper has other significant advantages, like being able to provide an external perspective and seeing the big financial picture without being bogged down by unrelated details.

Gain Scalability and Flexibility

When your company grows, so do your responsibilities. Another of the benefits of outsourced accounting is that when you hire somebody with experience in scaling up, they can help you work on your future plans, manage growth, and ensure you are still making profits as you expand. An external accountant will provide you with accurate and detailed financial reports, ensuring you stay competitive as your business grows.

Time Savings and Efficiency

Having somebody outside of your company who is managing bookkeeping and financial records can take a huge chunk of time off your plate. They can deal with legal compliance, employee wages, paying suppliers, managing expenses, and everything else, so you can focus on other aspects of running a company. 

Account management can be complex, especially as your business gains momentum, so hiring a professional who you know you can trust to handle these financial and growth aspects can make your workday more focused and efficient. 

Receive Detailed and Accurate Financial Reports

An accounting firm is filled with highly educated and professional bookkeepers and accountants who will produce reports that are detailed and accurate. This will make sure you fulfil your legal requirements regarding taxes and will also ensure you have a good grasp on the overall financial health of your business at any given time. 

Access to Advanced Technology and Tools

Financial software can be complex and unintuitive when you are first learning to use it, and your accountant can help you implement these types of new financial technology into your reporting and daily workflow. 

Staying up to date with the latest software and accounting function tools available in the market will ensure you keep up with the times so your company can thrive.

Benefit from Expert Insight and Counsel

Hiring an outsourced accounting firm can provide you with insights and wisdom that you may not find elsewhere. When several professional accountants are working together in one office, they are often inspired to grow and learn in their own careers, staying up to date on the latest laws and regulations. They will also be able to speak with colleagues and ask for advice if difficult or unusual situations arise in their accounting tasks.

FreshBooks can help you find an online accountant nearby who is ready to help your endeavour grow and succeed and fulfil all your accounting needs. 

Conclusion

No matter the size of the business or service you are offering, there will be some degree of financial responsibility that you need to take care of. Using a professional external accountant rather than hiring a part-time or full-time accountant onto your team and potentially can save you thousands per year. 

You will be more likely to find somebody with the appropriate level of expertise needed to manage your company’s finances, with better security and higher-quality results than an in-house accountant would be able to provide. 

FAQs on Benefits of Outsourcing Accounting Services

If I outsource accounting services, will it help my business make better financial decisions?

Yes, external accountants can see the “big picture” outside of your focused scope, helping you spot red flags or notify you about an incoming issue you may not have realised. They have industry expertise that can help with organising your business and cash flow and provide advice on future financial moves.

What are some of the risks associated with outsourcing an accountant’s services?

Data security is the top risk in outsourcing accounting. It’s important to ensure the firm is reputable, with excellent cybersecurity measures in place. Another major risk is receiving low-quality accounting and bookkeeping services, an issue that can be mitigated by using a local or well-established accounting and finance team.

Can outsourcing accounting services be more cost-effective than hiring an in-house accountant? 

Absolutely. When you hire an in-house accounting team, you are suddenly tasked with paying full-time or part-time wages, along with employee benefits, training, and any other costs associated with in-house staff. 

Although you must pay for their services, hiring outsourced accounting experts eliminates these additional costs, saving you money overall, especially helpful if you’re a small business.

Can outsourcing accounting services provide my business with 24/7 support and access to financial data?  

Accounting services are available to you that provide this level of assistance. FreshBooks offers support from highly knowledgeable help centre staff, along with dedicated account management, advisory services, and connections to expert accountants near you. Freshbooks has advanced tools, including accounting software that gives you 24/7 access to financial data.

How can outsourcing accounting services provide my business with a strategic advantage over competitors? 

When you outsource bookkeeping and accounting services to a professional, that responsibility is lifted off your shoulders so you can focus on core business activities that give you a competitive advantage. Your accounting team can provide you with important insights into your finances and help your company grow by assisting you as you make critical decisions.

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