Cloud accounting has been gaining more and more traction over the last few years. It was just a matter of time before outsourcing your accounting became became priority to add to your bottom line. Gone are the days of paying staff members to capture repetitive information such as bank statements or duplicating invoices into your accounting software.
The rise of the online community has changed the way in which we do business forever. It has brought us closer to people that can help with our day to day operations as well as back end business needs, enabling our businesses to run smoother and turn more profit. One of the key places that this has really made a difference for business owners is in bookkeeping.
Bookkeeping is much like going to the dentist — no one really wants to take the time out to do it but neglecting the issue can lead to serious repercussions.
Top Seven Advantages you get from Outsourcing your Accounting
But now, because of that great availability factor that the online world provides, it’s becoming more and more practical for companies to take this one step further. Instead of having in-house bookkeeping services or doing it themselves, many businesses are discovering the multitude of advantages outsourcing accounting operations have.
Here are the top seven benefits you can enjoy as well:
1. More time.
Outsourcing your business’s accounting operations frees up valuable time that can be put into bettering the company. Backend office functions can be a heavy distraction from the day-to-day running of things and having your bookkeeping in-house can lead to a conflict of interests. All of these time-wasters and distractions need to go—out of sight, out of mind.
2. Saving money.
The bottom line is that by outsourcing your bookkeeping operations, you save money on paying full-time or part-time wages and benefits to an employee. Further, you also save on lost productivity costs that come along with hiring employees onto the payroll. By outsourcing your bookkeeping, you only pay for what you need—nothing more, nothing less.
3. Expertise on your side.
Outsourcing gives you a great way to have full-time knowledge on your team without having to pay for it around the clock. By putting your books into the hands of a highly skilled staff member who understands the best practices and how to properly account for certain tasks, your job becomes a whole lot easier—and more effective.
4. Focused work staff.
By eliminating the distractions of the office from their jobs, bookkeepers are able to provide clients with more focused work also. It’s hard for bookkeepers to do their jobs around the hustle and bustle of a business—removing them from the site through outsourcing not only helps you focus on your business, it helps them focus on your business as well.
5. Team staff versus individuals.
When you outsource your bookkeeping, you’re placing your financial records in the hands of staff that thrives on teamwork. Unfortunately, one bookkeeper is often not enough to find every subtle nuance that can benefit your company. But when you outsource, you have a team of workers and managers checking and double checking each other’s work, helping to ensure that you receive the best services possible. This also helps keep a separation of duties i.e. HR and purchasing are as individually accountable as credit services and customer care. When you have your sections running smoothly, they come together to produce a better and more cohesive unit.
6. Access to top systems.
Outsourcing your accounting operations give you more access to the top tools in the industry. Most businesses can’t afford to pay for the extremely expensive bookkeeping programs nor can they afford to spend the time keeping up with changing laws and regulations. By outsourcing, you’re essentially purchasing those tools and that knowledge by proxy, but it’s even better—you don’t actually have to do any of the work! Plus, these top systems create nightly backups and keep organized records and books for years, ensuring that if SARS ever does come knocking for an audit, you’ll be more than prepared for them.
7. Scalability options.
Finally, outsourcing your accounting allows you to expand or cutback in the blink of an eye. Whether you’re looking to grow your business or cut down on spending, having a reliable team at your side, providing you with different plans and options will help you achieve your goals. Outsourcing provides flexibility that in-house bookkeepers just can’t provide.
Luan van Rhyn is a registered Professional Accountant (SA) and Chief Dreamer and Founder of Calypso Accounting. Luan and his team are passionate about helping SME’s grow and streamline their businesses and are continuously looking for ways to help improve their clients’ bottom line.