Accounting Outsourcing Explained
Businesses that are looking to improve their accounting functions while gaining specific benefits for their organizations often consider accounting outsourcing as a solution. By outsourcing financial functions, organizations can learn new insights about their operations and can even reduce their use of resources.
In this article, you can read more about accounting outsourcing and how your organization can take advantage of its benefits.
What is Accounting Outsourcing?
Accounting outsourcing is contracting-out the accounting and finance function that businesses would normally perform in-house. Since the outsourced work is no longer done in-house, businesses lose direct control over the processes but are free to focus on their core business while accounting specialists assist with the accounting and financial work.
Outsourcing itself has a variety of different benefits for businesses, but accounting outsourcing has other benefits, as well. Accounting outsourcing is often a form of onshore outsourcing, in the sense that the other company is typically located in the same country.
How Can Businesses Outsource Their Accounting?
Finding the right partner to outsource to is the first step. Organizations should carefully shop around since they will be sending out their accounting and financial data. Partners that fit the business needs and demands of the company are a natural fit---find the right accounting company by deciding ahead of time what you're looking for and what your expectations are.
Here are some financial and accounting functions that are frequently outsourced, as well as some unique benefits to outsourcing your accounting functions:
- Financial planning: Both financial planning and analysis are commonly outsourced. The finance company can help with developing budgets and forecasts, overseeing internal financial controls, and other important financial functions.
- Processing transactions: Transactional support in the form of back-office processing can help your business streamline operations and save resources for other functions.
- Closing months, fiscal quarters, and years: Accounting companies can provide support for end-of-period financial analysis and closing. They can help with reconciling balance sheets, verifying entries, and so on at the close of a financial period.
- Access to improved technology: Accounting businesses often have the latest forecasting, analysis, and processing technology available and are able to offer their clients use of these advanced systems.
Businesses form a contract with outsourcing partners. With these contracts spelling out terms and responsibilities, the outsourcing partner starts taking on work sent from the business that hired them.
What are the Advantages of Accounting Outsourcing for Businesses?
Outsourcing of any kind can have advantages for organizations, but outsourcing accounting can have particular benefits for your business. You can generate significant savings and also gain greater insight into your business by having an outside, professional perspective invited to take a closer look at your organization.
For businesses, the following are commonly-recognized benefits of outsourcing accounting functions:
- Reduce staffing costs: Cut your recruitment and hiring costs by instead having another business do your accounting. Rather than have a full in-house accounting department when your organization doesn't really need that high of a staffing level, you can leave the work to a business that solely focuses on accounting.
- Acquire experienced staff: If accounting isn't your focus, you may not have the most experienced or qualified candidates available to you when you recruit. Outsourcing can help you find the best people---and you don't actually have to do the looking.
- Better visibility: If the financial picture at your business seems confusing or frustrating, you're not alone---many businesses aren't sure what's happening in the background. Outsourcing your accounting can help you regain greater visibility and see what's really going on throughout the fiscal period.
Gain more knowledge, flexibility, and improved scalability from outsourcing your accounting functions and finance. Accounting outsourcing can help you fun your business better and gain improved insight into what's really happening with your financials and financial future.
Getting Started with Accounting Outsourcing
Accounting outsourcing allows businesses to have another company take over the accounting and financial side of their operations so they can focus on running their core business instead. This can help businesses gain greater transparency in their accounting functions and achieve cost and resource savings that can help improve the business. Outsourcing accounting can help businesses cut staffing costs, improve financial planning, and gain greater forecasting insight.
Your business has enough on its plate. Outsource what makes sense for your business, choose a world-class SaaS technology solution and focus on what's important: your clients. Call 1-866-879-8647 or fill out an online form to request a no-obligation quote from an 8x8 product specialist.