Back to Blog
Accounting and bookkeeping are practices that can be tedious. These functions although increase the efficiency of a company and add to the economic process of the nation. The practice of outsourcing accountants’ service has been in the system for a long time. Outsourcing is the practice of having a certain job function handled outside the company. It is just one means to cut costs and help the daily work of business processing. Managing the accounting processes for a company includes various functions such as updating transactions and maintaining the essential accounts daily. You may wonder if it's the right choice to outsource your bookkeeping services. But rest assured, it is beneficial to outsource the accounting and bookkeeping of your company, and here’s why.
Ease of Availability
Hiring a full-time or part-time accountant may not be an easy task. Accounting and bookkeeping are processes that require to be recorded daily to maintain the right set of accounts. An in-house person may not be available at all times which can stun the ongoing process. Outsourcing an accountant, on the other hand, would be quicker and efficient. There is a guarantee of them being available for 365 days of the year and around the clock. With their expertise and well-equipped team, it would be comparatively easier for them to complete tasks and submit the data and the required accounts and reports on time. In contrast to which, it may be cumbersome to contain the in-house employees and extract necessary accounts on a timely basis. Also, being an employee of the company, the in-house accountant would be entitled to holidays and off-days from the company.
Access to the Latest Tools
Today, accounting is best done when you have access to the best accounting software and tools like QuickBooks. As a small business, getting the paid version of this software can be expensive. Plus, finding people who can efficiently work with these tools can be difficult and time-consuming. Professional accountants are equipped with advanced accounting software to cater to the companies requirement of personalized reports. It would take time for the business to make important financial decisions. It is also easier to obtain any information related to accounting and payroll which the professional accountants would have knowledge of. Outsourcing to the right accountant will not only provide you with expert staff but you will also get access to the latest accounting tools.
Reduced Employee Cost
Outsourcing your accounts to a professional accounting team will reduce your cost dramatically, and allow you to concentrate the limited resources on your core business. You would have to invest zero employee cost on the accountant. With the benefit of paying only their fees, your company would not have to worry about expenses like paid leaves, insurance, payroll taxes, incentives, bonuses, and other employee benefits. You can eliminate overhead costs connected to the services you receive, and thereby deploy the resources at the area where you require to maximize its leverage.
Focus on Your Core Business
Most businesses don’t have accounting as their core competence. The growth of a business relies on the increase of the sales and service of the company which ultimately would lead to profits. Putting away focus from administrative tasks like accounting and bookkeeping gives you ample time and resources to spend on your core business. A professional outsourced accountant would be able to handle the accounts at the back-end while you work at running your company. It would make it simpler for you to focus on your clients and core processes for the business while they manage the accounting of your company. Spending more time and energy with clients and customers with a high level of service would bring them satisfaction.
Minimized Office Cost
An outsourced accountant would work with his team away from your office. This makes you liable to only pay the fees for the work they deliver to you. When you hire an accountant on your in-house team of technicians or any other business, it would be mandatory for the company to at least provide a decent working space for them. This would affect your company’s opportunity cost of hiring a team member to cater to your core business. Apart from the accumulation of the opportunity cost, it would also save you the extra office expenses that may incur during the in-house accountants work period in the office.
Accounting errors in the payroll or income tax filing can lead to interest charges or penalties which are staggering mistakes for a company’s future. When you hire professional accountants to manage your accounts or take care of these expenses, it reduces the risks that the company would’ve otherwise have to face. It’s not just access to expert advice but also the guarantee that a professional would meet the compliance and regulatory standards in confidence of the financial reports. Outsourced accountants specialize in their work and which make them even dependable for qualified work. These professionals would have reliable information to help make business decisions of improved nature in less time. Outsourcing the accounting work to the perfect resource would give you peace of mind and put you at the advantage of being in pace with today’s hyper-competitive environment.
You can use different cloud-based accounting applications, use similar software as the bookkeeper and share the necessary financial documents with your accountant to integrate outsourced bookkeeping with your existing accounting department. For this, let Canada’s leading accounting firm provides you with its service.Use accounting services that we offer for entrepreneurs, small and medium size business owners.
Back to Blog
Running your business is a remarkable journey on its own. Looking after various functions, especially the accounting practices is as interesting as tricky it is. You need to look for different ways to make sure that the valuable numbers of your business don't work against you. And in this process, when you follow the same pattern in accounting, the process starts to stagnant. Thus, you must consider the following accounting diversification tips to ensure that your business moves ahead with a balance of fresh and traditional ideas.
Start From Your Employees
Your business's success starts with your employees. So make sure you have employees who can contribute to accounting diversification. If you don't have enough people in your office, hire new ones. Intentionally seek people with different points of view. Invite people who are collaborative and are not afraid to express their ideas. Their contribution may lead to new streams of revenue that are aligned with your current services. Once you have a good crowd with varied mindsets and ideas, encourage them to brainstorm and think of diversification ideas. As you manage your business, reward team members who think outside the box and offer new perspectives. Acknowledge fresh ideas so that they can continue contributing to the process. Make a list of all these ideas and contemplate. See which ideas can be workable, and start taking actionable steps in those directions.
Use Different Accounting Methods
When it comes to accounting diversification, one thing that you can easily do is diversify the way you account. Today, several options are available for small businesses to opt to complete their daily accounting practices. Rather than choosing just one type and sticking to it, you can try your hand at different alternatives. Firstly, opt for the traditional way of accounting of using Microsoft Excel or Google Sheets. You can manually enter the less confusing parts of the accounting system, such as the payroll and bonuses if you have a small group. For other more tedious tasks like tax calculation and filing, you can use the best accounting software available. Most of these accounting software require you to pay in order to use the complete services. With accounting diversification of accounting methods, you save a lot of money by doing accounting in traditional ways.
Make Different Teams
Rather than appointing one person to look after your organization's accounting practices, you must make different teams or small departments. Let each of these teams handle one accounting process. Different teams can handle tax planning, regular bookkeeping, payroll management, and other processes. When different people are appointed to do a specific task, they tend to focus more on that area. This not only helps in getting innovative ideas of running those processes efficiently but also helps you to know who to talk to for a specific topic. For instance, if you want to know about tax filing and deductions, you can directly get in touch with the tax department. This way, people will be able to work with more freedom and creativity, which will further benefit your organization. Also, diverse teams resolve challenges at a quicker rate than homogenous teams. But keep in mind that creating different avenues will cost you extra as you will have to hire more people.
Hire an Accountant
Although it is an added expense in your overall business budget, the expense will be worth it. Just like when a company needs legal help, the only option is a lawyer, an accountant can guide the company for accounting diversification. This professional will be your assistance at every point and help you with several more ways of accounting diversification. The professional knows how a business should ideally function and what are the best-proven ways to diversify not only accounting but all other business processes so that you can run your business efficiently and within the budget, you outline.
Accounting diversification is a lot more than just a simple idea. It is a master plan that can take your business on the path of success and efficiency. Follow these easy tips and try to cut down on extra costs, and you'll continue being successful. Keep in touch with your accountant so that they can help you at every point in your journey.