This is a user generated content for MyStory, a YourStory initiative to enable its community to contribute and have their voices heard. The views and writings here reflect that of the author and not of YourStory.
Can outsourced bookkeeping really increase your firm productivity?
almost every firm faces the challenge of balancing completion of operational tasks such as accounting and bookkeeping
This is a user generated content for MyStory, a YourStory initiative to enable its community to contribute and have their voices heard. The views and writings here reflect that of the author and not of YourStory.
Today, almost every firm faces the challenge of balancing completion of operational tasks such as accounting and bookkeeping, while proactively focusing on the business development activities, such as consulting and service expansion. The administrative tasks are time-consuming and often detract from the business development activities.
Bookkeeping is a painful task to manage the accounts that keeps recurring every March. Above all SMEs don't have enough funds to have an in-house resource to maintain the books. Therefore, businesses are finding outsourcing in their operation strategy, the most underleveraged solution as it can significantly impact the productivity. Now, it is becoming more and more practical for companies to opt for external resources, instead of spending a large amount of time in managing the financial books themselves.
Plus, outsourcing bookkeeping also comes with an array of advantages for businesses that contribute to the efficiency. Let's check if it fits into your paradigm:
Convert fixed staff costing to variable cost with Scalability
Whether your business requires the complete overhaul and augment existing staff or a bookkeeper for 20 hrs each week, Outsourcing allows you to cut back or expand your bookkeeping as per your business needs. Whether your business is increasing or you wish to curb expenses, having an access to reliable bookkeeper provides you with different options, that in-house bookkeeping can't provide.
The flexibility to draw the additional resources, when workload arises, while keeping the option to scale back, is achievable by partnering with a reputable outsourcing company. This way CPA firms need not worry about hiring and managing people and investing in permanent staff, especially when retaining the right level of talent is a big challenge.
Similarly, a number of clients of CPA firms require CFO level expertise to manage the financial reporting, but most of the time they are not able to sustain a full-time CFO for an entire year. The specialized outsourcing providers offer the accounting services with a range of services based on firm's unique business requirements.
Leverage the technology
What lures the firms to outsource is the access to technology investment of provider. Today, the industry is facing a large shift to the cloud based platform and Software as a Service (SaaS) format. This enables the provider to share the technology infrastructure with the clients based on the company's unique requirements.
Adopting, Outsourcing as the operational strategy relieves the businesses from the headache of ensuring the most up-to-date version and managing upgrades; enabling them to reap benefits of provider's investment. Whereas, they may also get the benefits from technologies they may not have expertise over.
Outsourcing Bookkeeping empowers with the host of industry specific operational and financial reporting portals with customized dashboard and insight tools. These tools offer the operational efficiencies by tracking key performance indicator and metrics, while also providing the 24/7 access to updated financials.
Cost Effectiveness
The most obvious benefit of Outsourcing is cost efficiency. Outsourcing providers leverage the integration of best practices and process optimization, which directly impact the profitability and increased productivity.
Revenue creation with extension of services
Outsourcing financial task enables CPA firms to leverage complementary services. CPA firms can grow business with the extension of own service line while eliminating the need to invest in developing the product from the ground up.
For example, the firm can outsource its accounting system integration and management can resell accounting system integration services as their own offering. They can also offer outsourced bookkeeping services from skilled expertise while not worrying about training and deploying the additional staff.
Professional expertise is crucial for business
By outsourcing bookkeeping, you get your tasks done by professionals without having to pay for 40 hrs per week. It is advisable for the businesses to outsource the bookkeeping to save the valuable time. If you are managing the books in your business; unless you are a bookkeeper by trade, it is likely that you don't know the technology at fingertips to make things easier; which wastes your time that can instead be spent on expanding the business. With outsourcing bookkeeping, you make use of the efficient processes, which suits your individual business needs and completes faster, in-time and in-budget. Placing your financial books in the hands of professional bookkeeper, who knows the best practices, makes job efficient and easier.