Accounting is kind of like changing the oil in your car – something that is absolutely necessary but pretty unexciting. So it’s not surprising that a recent Accounting Today survey showed that most businesses under 500 employees choose to outsource some or all of their accounting needs. After all, how many people change their own oil?
Outsourcing just make sense when you consider how many pain points are associated with average accounting workflows – anyone who has stayed late to finish the month-end close understands. Sending the most time- and labor-intensive tasks to someone else (or outsourcing the back office entirely) solves a lot of those headaches and creates exciting opportunities in the process. Here are some examples:
- Keep Accounting Costs in Check – Outsourced accountants provide the same experience and expertise as in-house accountants but at a fraction of the cost. You can either add extra accountants without straining staffing budgets, or phase out in-house accountants and cut labor costs in the process.
- Focus on Revenue Generation – Owners and leaders need to spend their time on major initiatives, not on plugging numbers into spreadsheets. Once outsourced accountants are handling the workload, those same leaders can focus on building bold plans for driving revenue.
- Upgrade Accounting Tech – Modern accounting can’t happen without cutting-edge technology and a ton of accounting data to plug into it. Unfortunately, that doesn’t mean implementing and mastering world-class accounting tech is ever easy. Since outsourced accountants already take a tech-first approach, they can instantly upgrade accounting for 2019 and beyond.
- Access Specialized Accountants – Hiring specialized accountants – someone who can advise foreign subsidiaries about US tax laws for example – is expensive to put it mildly. A full-service outsourced accounting firm gives you access to these same experts on-demand instead of forcing you to hire costly consultants or compete for top talent.
- Optimize Data Usage – Accounting data is full of strategic insights that are key to your competitive advantage. Instead of trying to tackle data management and advanced analytics on your own, rely on outsourced accountants to turn your data into actionable insights. The jobs that accountants dread – things like the monthly close and quarterly reporting – take minimal input yet provide a detailed roadmap for the future.
- Minimize Fraud Concerns – Fraud is a bigger problem in small or one-person accounting departments because there is less oversight. Outsourced accounting teams are bound by professional ethics and best practices, giving you peace of mind that fraud is not chipping away at the bottom line.
Not surprisingly, the Accounting Today survey also showed that businesses that embrace outsourcing are more likely to see increased profit growth. Eliminating a huge portion of back-office functions from the daily to-do list liberates companies to focus on what they do best. At the same time, having a team of expert accountants to rely on leads to faster, smarter, and more precise accounting across the board. In that way, outsourcing is both a solution and business strategy – a true win-win.
Every company takes their own approach to outsourcing. Find what works for you by contacting CDH.