Key Benefits to Outsourcing Accounting and Bookkeeping Functions

One of the most important components of successfully running a business is making sure that the financial books are in order. Accounting and bookkeeping are necessary and complicated processes that can use a lot of resources if the business performs these tasks in-house. While large corporations commonly outsource bookkeeping and accounting functions, small and medium-sized business can also take advantage of the benefits of outsourcing. Outsourcing allows a business to save money and have specialized services performed by a pool of experts.

Time

One benefit of outsourcing accounting and bookkeeping functions is that outsourcing can save time for the business. Time is an invaluable resource. By eliminating the time-consuming task of bookkeeping and accounting, the business can use key personnel within the organization on other projects and tasks. Large corporations commonly outsource these functions because of the resources required.

Cost Savings

Outsourcing accounting and bookkeeping tasks can save a business a substantial amount of money. Having in-house employees dedicated to accounting and bookkeeping requires the business to devote large sums of money to these functions. For example, a business would typically have to pay a fulltime accountant or bookkeeper a salary and benefits that may include insurance, sick leave, vacation time and retirement accounts. The business would also have to provide office space and equipment, such as computers, office supplies and other accessories. According to the 2004 book "Business Process Outsourcing: The Competitive Advantage" by Rick Click and Thomas Duening, this cost savings will typically range from 30 to 60 percent for the business.

Access to Accounting Experts

Accounting is a very technical field which requires expertise. If a business want to hire an experienced accountant, the business will have to pay for this expertise. When a business outsources accounting and bookkeeping functions, it has access to experts in all the different fields of accounting. Certified accountants knowledgeable in current accounting rules and regulations typically provide the outsourced accounting services. As a small or medium business, using an outsourced accountant can help to ensure that the business will have the latest accounting rules and regulations applied to the business.

24/7 Support

Many of the outsourcing companies that provide accounting services 24 hours a day, seven days a week. In many cases, a business not only has access to a staff of people who can answer its questions at any time, but also access to its information online from anywhere in the world. This access to accounting and bookkeeping information can greatly benefit the business by offering timely, relevant and accurate information on demand.

References

• "Shared Services in Finance and Accounting"; Tom Olavi Bangemann; 2005
• "Business Process Outsourcing"; Rick L. Click, et al.; 2004