From small business owners to larger corporates, the option to outsource accounting services is something that should be seriously considered. Whether it’s a circumstance where a full-time, in-house accountant isn’t necessarily required, or the accounting duties are getting too time-consuming, accounting outsourcing might just be the perfect solution.
6 Benefits of Accounting Outsourcing
Here are some of the benefits of accounting outsourcing.
- Save on staff costs
If you are hiring an in-house accountant, you will be outlaying a lot of expenses that could ultimately be saved when outsourcing the same services. The costs related to recruitment, initial and ongoing training, payroll taxes, benefits, holiday and sick leave all fall away when you outsource accounting. Another major cost you will save is related to purchasing and updating expensive accounting software, as well as the ongoing equipment maintenance costs and training.
- Avoid unnecessary tax fines
Compliance with South African Revenue Services’ legislation is incredibly important and can cost you big if not adhered to. Mistakes such as late or wrong submission of employee taxes can result in big penalties which increase with daily interest hikes. By outsourcing your accounting services, you are eliminating the risk of tax fines through accurate administration.
- Access to knowledge
When you partner with an outsourced accounting firm, you will have direct access to vast tax and financial knowledge. The outsourced accountants will, no doubt, vary in specialities and industries which could benefit your business. And, because they are specialising in accounting, the provider will incorporate the latest in accounting technology to ensure smooth financial procedures.
- Focus on core business goals
Unless you are an accounting firm, managing accounts is probably not the main focus of your business, and any time spent on this is time taken from achieving your business goals. By outsourcing the accounting services, you are freeing your staff from the stress of accounting administration while freeing up time to complete tasks associated with enhancing productivity. There is more time to focus on strategic growth, improve customer service and research new ventures.
- Better decision-making
The superior software and expert advice provided by an outsourced accountancy firm will supply you with up-to-date, accurate and relevant financial data that can be used to grow your business. You can also require specific data key to your business needs and develop useful charts and reports from this. You can then take growth-driven business decisions, rather than guessing the best way forward.
- Reduce the risk of fraud
The unfortunate reality is that, when business accounts are handled in-house, there is a greater risk of financial mismanagement. By outsourcing accounting services, there are greater internal controls and any errors or inconsistencies related to your business finances are quickly flagged and attended to.
There are many benefits associated with outsourcing accounting to a third-party supplier with the end result being enhanced productivity overall. Make sure you source a reputable provider that has knowledge of your particular industry, and is willing to customise their approach to suit your unique business model.