With the emerging technologies and digitalization of activities, the practice of outsourcing various support functions of business has seen an inclination in the recent past. One such outsourced activity has been the accounting and bookkeeping of small and medium-sized companies. Outsourcing is the process of delegating specific operations to a third party to capitalize on various benefits that were previously not available. Outsourced accounting, therefore, means hiring a service provider who specializes in the field of accounting and bookkeeping for a hassle-free experience.
The scope may differ from engagement to engagement but may comprise everything from day-to-day transaction recording, accounts receivable, accounts payable, payroll and taxation, and managing financial reporting. Unlike ASC not many firms provide A to Z financial services. By outsourcing the accounting work, the company can focus on its operational activities and other crucial matters while taking advantage of various benefits such as-
- Accessing Expert Advice: By outsourcing the accounting work, the companies may feel confident that only the most qualified individuals are handling their finances in an unbiased and objective manner. The firm will have a number of professionals with full of experience who can do it in a better way.
- Reducing Business Cost and Time: With outsourcing, companies can save their cost as they shall only pay for the services obtained. They can also save time and money spent on selection and training processes while hiring accounting professionals. Moreover, there is no challenge of replacement.
- No Sick Leave or Holidays: An accountant employed by a company may feel sick and ask for a holiday that can stop the work or may cause trouble as the company may be dependent upon one single resource. But in an accounting firm, there are a number of employees who can always stand in for each other. This is done without compromising know-how.
- Up to Date Information: The large accounting firms like ASC, always have their eyes on the updates and the changes in the world of finance. They focus on all type of legal compliances which should be followed. A single person responsible for maintaining the accounts of the company may miss the due dates or relevant updates because of some other work but a professional services firm may not as it is their core practice area.
- Fraud prevention: Nowadays, we all hear about the fraud committed by the employee. And because of this internal controls are weakened whereas there are zero chances of fraud in case of outsourcing of the accounting function.
- Increased profitability: By outsourcing the routine accounting work, the company can focus on its operations and other crucial matters which needed immediate attention. By focusing on such matters company can work better and increase its profitability.
- Minimize Risk: The in-house accountant may occur reporting errors which may be very costly. It may cause the company big trouble. The penalties and charges for payroll & income tax mistakes are staggering. There are interest charges also in case of delay in any type of payment of taxes. But in case, the accounting work is outsourced then the company may count on the professional firm who is responsible for undertaking this task.
Especially in recent times where the world has seen the pandemic of the Millenium, the corporates are focusing on reducing their fixed costs such as their legal costs, employee cost, etc. It is better than ever to take an accounting services firm onboard where not only the cost for maintaining the books shall be reasonably low but also there will be no fixed commitments apart from the professional fee payable. We, at ASC, are serving the small and medium enterprises globally by sharing their accounting and bookkeeping activities and thriving to add value in their businesses every passing moment.