Today, business process outsourcing (BPO) has become an increasingly integral process in the set-up of an organization. Some types of BPO include the outsourcing of accounting, marketing, sales, and even human resources processes.
This article will discuss how it can be beneficial for your accounts to be outsourced to an accounting firm. If this concept appears novel to you, it actually means that your accounts will be handled by an external firm, usually the professionals at their premises and at their convenience. This also means that the task will not be done in your premises and it would thus be easier for you to manage other tasks and devote more attention and resources to things that are of more importance to you. In the following, I will discuss the various advantages in the business process outsourcing of accounting.
When the company accounts are being done by an external accounting firm, you do not need to hire a in house full time accountant. This way, you can save on the monthly salary which usually cost around $2500 onwards for an accountant. Besides that, you do not have to worry when your in house accountant decides to resign or apply for sick leave or annual leave. When you outsource the task, the accounting firm will work on your accounts and completed within the stipulated time. The responsibility of the work to be done is on the accounting firm. Generally the cost for accounting service would usually cost around $150/month at the minimum. If you are a cost savvy person, then you definitely wouldn’t mind outsourcing your accounts to an external accounting firm.
For small businesses or newly start-up companies, it is understandable that the owner will try to do everything on his/her own. This can be due to budget constraints on employing or just simply because there is no need to. However, arguably in term of business sense, the owner should make good use of his/her time in increasing the performance of the business. Time spent on non-profiting process, such as having to do data entry in the accounting system, should be minimized. This process can be outsourced to an accounting firm. In fact the return of investment is higher, since you will be able to generate more profit when you have more time to grow the business. Furthermore, outsourcing your accounts would also mean that you do not have to worry incessantly about the due dates and about incurring any late filing penalties. After all, time is money, and outsourcing your accounts can prove to be very worthwhile for your business at the end of the day.
In some cases, the company may not be able to hire someone with all the necessary expertise. For example, an accountant hired by the company to handle the daily transactions may only know how to do accounting but do not have the expertise to do business grants or even taxation. As such, it is quite difficult to hire someone who is well-equipped with the knowledge and expertise. To avoid going through this tedious process of hiring a highly capable accountant, you can professional help from an accounting firm. When you engage the accounting firm, you can be rest assured that the company is aligned with regulations ability to solve your queries.
Although we always emphasize multitasking in the job description, employees may not always be able to cope with stress due to overloading of work and the lack of knowledge to perform adequately. Additionally, when you have your accounts outsourced, you can allow your staff to focus on other work that are more critical during that period of time. Some companies that leave their accounts to the last minute may also cause the entire process to be extremely inefficient. Employees rushed to finish the accounts may also turn out reports that are inaccurate or late. To prevent such incidents, business owners should start planning earlier.
When the task is assigned to an accounting firm, the task would be done professionally. This would be beneficial as the company may not be able to hire a professional on monthly salary basis. The task that is being outsourced to an accounting firm will go through checks and reviews before being submitted back to the company for approval. You actually get the best of both worlds – having a professional to complete your accounting tasks and higher standards of work completion.
Thus, when we look at the factors of BPO in Accounting, there are lots of advantages beneficial to the organization in comparison to the conventional ways of completing a company’s accounts. So, this is indeed a better alternative that business owners can look into.
To find out more on accounting process in an accounting firm, do contact us now.