Small business owners spend around 80 hours, managing their financials only. That’s more than a week that could have been spent on planning the growth of the business, or developing the core competencies of the business.
Even then however, many small business owners find it hard to manage their finances, scale their processes and prevent frauds in their system. This is where outsourcing comes in. Outsourcing may be one of the best ways to manage the important function of accounting efficiently.
Here’s why outsourcing accounting is worth it:
One of the primary benefits of outsourcing the accounting function is the cost-effectiveness that the business is able to achieve.
Outsourcing of any function always proves to more cost-effective than hiring a full-time employee. The reason being that service providers are paid only for the work that they perform, which is limited in terms of time and scale. Whereas an employee is entitled to basic salary, benefits, medical allowances and paid laves.
Simplification and standardization are two key benefits of outsourcing the accounting services.
Since accounting service providers are professional, they streamline all accounting practices of the organization so that data is readily-available and is easier to make sense of. This helps organizations in making key business decisions and significantly reduces the margin of error.
Small businesses looking to expand or for ways to sustain their current business model benefit a great deal from expert help.
Since accounting services are veterans in their field, they are able to provide consultation on important aspects of the business and help the business set more realistic and efficiently financial goals.
Outsourced accounting provides consultation on regular basis, thereby helping a business in constantly improve and develop.
Small businesses rank the highest when it comes to occupational frauds. The average loss a particular business faces each year is around $150,000 each year, which is pretty significant considering the size of small businesses.
Outsourcing not only helps in handing over high-risk areas to a more professional third-party, it helps the organization in identifying any other frauds that a company is facing.
The goal of every company is to constantly grow and explore more markets. However, this isn’t easy if the internal process and structure are not scalable.
By outsourcing an essential function like accounting, a business can ensure that their current structure isn’t hindering their growth in any way. It is easy for small businesses to fall prey to a management style where they aren’t prepared to tackle a merger, expansion, increased demand or launch of a new product. This is a management style that is bound to fail.
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