Skip to main content

Pros and Cons of Outsourcing Accounting

According to recent statistics, 37% of businesses spend more than USD 5,000 for the administration of finances and 33% of these firms devote more than 81 hours on finances every year.
Whether you run a real estate business, textile firm, a digital marketing agency or any other industry, every small business needs to manage its books. Some entrepreneurs handle it themselves and others hire an in-house professional.
However, with an increased need for quality accounting services to fulfill business demands, outsourcing accounting activities are gaining popularity in recent times. You won’t have to look after monthly expenses, spend too much time every year on taxes or pay hefty prices for hiring skilled professionals.
Let’s consider some pros and cons of outsourcing accounting activities. These will help you make an informed decision while looking for an accounts outsourcing partner.

Pro: You Can Save Money Spent On Your Financing and Accounting Activities

Even if you can hire a resource for handling accounts, it is hard to employ expert professionals, since small businesses have financial limitations. The outsourcing partners, however, work with various clients and have a highly experienced team along with the latest tools and technologies. They can handle your books, maintain regulatory compliance and reduce costs of business in the longer run.

Con: You Will Have Comparatively Less Control on the Operations

With an in-house team, you can get information anytime you want. You just have to walk down the hall, get updates and get things done in your own way. While handling books yourself gives you full control of the functioning, the same might not be the case when you opt for outsourcing services.

Pro: You Can Receive Enhanced Support for Finance and Accounting Activities

The outsourcing providers have a full team working on your books, and additionally, they keep brushing up their knowledge of finances, accounting and compliance. This leads to an increased quality of work, accurate books and reduced compliance issues.

Con: You Can Face Communication Challenges due to Physical Distance

With in-house financing professional, you can communicate easily in minutes. However, communicating with your outsourcing partner can be a challenge. You can’t communicate face-to-face always, and at times, entrepreneurs don’t even know who exactly is working on their books.

Pro: You Can Utilize Saved Time on Other Business Operations

Since someone else will be handling your accounts, you can use this extra time for other important business operations. You can align your company’s tasks, solve difficult matters and avoid the headache of financing. Moreover, you can seek advice from your outsourcing partner for enhanced decision-making.

Con: You May Encounter Issues Related to Sensitive Information Security

While hiring an outsourcing accounting partner, you trust this firm with your data, your employees’ sensitive information and other such data crucial to your company. This poses a risk of your data being misused by the outsourcing partner or any member of their team.

Choosing the Right Accounting Outsourcing Provider

You can easily reduce your burden of accounting and finances by choosing the “right-fit” outsourcing partner. Although some cons of outsourcing accounting do exist, all these can be eliminated if your outsourcing firm has enough experience in the field and can cater to your needs efficiently. Hence, outsource your accounts for enhanced decision-making and heightened business operations.
Source: https://www.outsourcinghubindia.com/pros-cons-outsourcing-accounting/

Comments

Post a Comment

Popular posts from this blog

Why Should One Outsource the Accounts Management Processes of a Business?

W ell, for one reason that it means one less thing to bother about for the business! Not having to keep track of all the transactions – be it small or big – keeping the books updated is one hell of a task to do on a regular basis. But, as is obvious, outsourcing comes at a price and one needs to be convinced that it is worth for one’s business. On that note, let us now go about some advantages of outsourcing the accounts maintenance of the business. Here’s why there is an immense need for  outsourcing accounting  in today’s corporate world – Big, medium or small – whatever the scale of a business is, today’s customization accounting software can be effectively implemented for any of them. Outsourcing the manually processes to automation is an intelligent step because it means a onetime investment and lifetime’s benefits. Also automation means less manpower costs, fewer human errors and standardization Accounting practices can be murky and this only means lower visibility ...
Post a Comment
Read more

Hiring a Property Management Company

Owners with numerous properties and rental units are often stumped with the burden of managing incomes from them. It becomes a time-consuming and a daunting task to handle the various aspects of property management like handling rental incomes, owner’s funds and filing tax returns to name a few. Hiring a competent  Property Management Company  ensures an effective way to manage incomes from various let-outs, security deposits, reserve funds and even writing checks on owner’s behalf. Property managers exercise extensive skill and care into marketing rentals, retaining tenancy, maintenance and repairs thus saving your time and efforts! How an efficient Property Management Company handles your funds? An expert property management firm can become one of your greatest assets, if chosen wisely! So before you hire one, here are some features a management company should inherently possess to handle tenant and owner funds proficiently. 1. On-time Payment to Owners Proper...
Post a Comment
Read more

List of Accounting Outsourcing Companies

When it comes to running a business, Small and Medium Enterprises (SMEs) have to deal with a number of activities such as executing their core functions, dealing with clients, managing accounts, etc. However, all these can get taxing on the business operations in the long run. To help such businesses manage their routine workload, accounts outsourcing companies help in a great way. Accounts outsourcing involves hiring an external party to carry out activities such as rendering professional accounting services to clients within the time-limits, helping businesses to maintain their accounts database, etc. List of Accounting Outsourcing Companies Here is a list of the 5 best outsourcing companies that you can look out for. 1. OHI- OutsourcingHubIndia OHI specializes in  accounting outsourcing services . Started in 2006, it has created a niche for itself in the outsourcing sector with its top-notch working systems, excellent infrastructure and ethical work practices. Their ...
Post a Comment
Read more