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Many small and medium businesses, start-ups, and entrepreneurs find it difficult to hire someone with the right skills to write their books of accounts, manage their bank account reconciliation, analyze financial records, and prepare purchase and sales invoices. Nowadays, it is even more difficult to find the qualified and suitable person at the reasonable rate.
Even though it is commonly thought that accounting and bookkeeping must be done in-house, it is important to know, whether you have the necessary skills, time and experience to do this job. Because of this fact, it is worth to outsource your bookkeeping task to someone with the sound knowledge and experience, who can do the same job in a more cost effective way.
For the same reason, many small and medium business entrepreneurs have noticed various positive sides of outsourcing bookkeeping and accounting services without causing any adverse effects on their business and most importantly on their customers.
However, we believe that the advantages of outsourcing should be considered against many other positives and not only against the cost savings of the company. Hence, we want to share the top 5 benefits, which our clients in Australia, UK, USA, and Canada, have already experienced after their decision to outsource their bookkeeping and accounting.
BENEFITS TO OUTSOURCE BOOKKEEPING & ACCOUNTING
1. Cost effective – Most businesses consider outsourcing to be extra, and therefore the excessive cost for their business. However, when it comes in reality, the savings which outsourcing generally provides can be quite significant as most companies can offer their services at the lower cost rates due to lower wage costs at their location. Besides, by outsourcing you save money on paying the wages and other benefits for the full-time or part-time employee, as you only pay for what you need. So there are no lost in productivity costs that come along with hiring full-time employees.
2. Extra time for your core business – As your business grows, you will find yourself spending more time on day to day activities and less time on your core business. Therefore, the outsourcing basic tasks like bookkeeping and accounting helps you to focus your time, energy and resources on your core business, networking and expanding customers. However, if you have extra funds to afford the in-house accountant, use its knowledge and expertise to generate sales and optimize your business expenses.
3. Professional service – Outsourced bookkeeping and accounting service providers endlessly have to improve their skills and knowledge to stay economical in the market, so you can be assured that you are handing over your bookkeeping to a reliable and knowledgeable person. It means outsourcing may offer you the option to hire a professional with an advanced level of knowledge at the reasonable price.
4. Flexible engagement benefits – When you outsource your bookkeeping or accounting, you have the advantage of utilize their services only when you need them. This factor can be particularly important for small businesses, start-ups, and entrepreneurs as they might not have enough bookkeeping work to take care of on a daily basis. Also, if outsourced bookkeeper or accountant does not perform up to the mark, you can easily terminate the contract with no further complications.
5. Expert Consulting – Whether you are looking to grow your business or simply cut down the costs, it is beneficial to have a reliable and experienced professional together with, who can provide you with various financial strategies and possibilities to reach your goals. Further, the outsourcing offers you a great way to have full-time expert aside your team and use their service on Pay As You Go basis.
Outsourcing, also known as Business Process Outsourcing (BPO), is the process of hiring another individual or company, either internationally or natively, to manage various routine business activities for you. In nowadays, it has become a standard business practice that allows small business, start-ups, and entrepreneurs to get services and requisite skills that can help them to develop their businesses, without any substantial investments and additional self-development.
Hence, as your business develops to the point where you need to have a bookkeeper, who can manage different routine accounting tasks for your business, but you do not have resources to hire an additional full-time employee or extra equipment and space in the office, outsourcing can be the right option for your company.
What is more, you can do so by advertising your employment requirements or outsourcing experienced bookkeeping and accounting companies online, while virtually communicating your particular needs and requirements.
From our experience working with different small and medium companies, outsourcing bookkeeping and accounting tend to work the best when:
• A small business does not require a full-time bookkeeper, but needs a person with additional skills than the office manager or receptionist can deliver;
• A company of any size can not find a full-time employee with the right skills at the reasonable costs;
• The temporary services are needed, e.g. extra help with the year-end reports or if one of the full-time employee is going on leave, i.e. maternity leave, sick leave etc.
Nevertheless, even you will hire a skilled and experienced person, someone (usually the senior authority) will have to be involved in the process while approving invoices, making deposits, reviewing time sheets, etc.
TASKS YOU CAN ASSIGN TO VIRTUAL ASSISTANT
1. Bookkeeping (purchase / sales / bank)
2. Account payables (supplier payments creation);
3. Account receivables (customers follow up)
4. Payroll processing;
5. Reporting to senior authorities and Management;
There are important advantages for clients who choose to outsource starting with cost efficiency. According to survey an employee can cost approximately 50 to 60 percent more than the specified wage due to the cost of benefits and the amount of time they are actually spend on task. For example, a $60,000 per annum employee could actually cost the company almost $91,500 per annum. An outsourced firm, however, can provide complete accounting services for roughly $3,000 per month or $36,000 $ per year.
ATG is a reliable bookkeeping service provider to small and medium clients. If you are looking for in outsourcing opportunities for your business, contact us on