ARTICLE
Accounts & Bookkeeping

Benefits of Outsourcing Your Accounting and Finance Function

Written by Analytix Editorial Team | May 19, 2022

Accounting and bookkeeping are the foundations of financial management. This makes it a mandatory function for any business, regardless of size. However, for startups, diligent accounting and bookkeeping can be complicated, given that resources may be minimal. In addition, infrastructure may be limited and budgets restricted.

Consider the freedom of outsourcing assistance in this situation. Here are some of the benefits of outsourcing business accounting and bookkeeping to help financial management better:

Expense reduction

Outsourcing assistance allows businesses access to manpower and infrastructure as needed. This helps save the capital expense required to set up in-house systems. The basics central to in-house systems include computers, accessories, communication equipment, support systems, and the manpower necessary to operate such in-house systems. Expense reduction through outsourcing thus happens in three ways:

1. Reduction in the capital expense: Capital is needed to purchase equipment, space, and infrastructure and operate an in-house department. An in-house department also needs timely upkeep and maintenance, both time and money consuming.
2. Savings in hiring resources: Accounting and bookkeeping need trained people for effective operations. However, it does not end at hiring alone. Hiring also requires periodic training, updating, and upgrading to stay relevant and effective.
3. Ensure dependable backup for information and data: Outsourcing both functions can replace creating an in-house setup while also providing robust and reliable support for the business.

Benefits of Outsourcing

Driving efficiencies

Regardless of the business size, an outsourcing partner can help drive productivity and efficiencies for a business along with the following parameters:

1. Proven systems and solutions: These provide access to infrastructure and expertise that is proven, reliable, and complete with backup.
2. Expertise and experience: Outsourcing partners work with businesses to gather useful expertise and experience. This expertise can benefit businesses by providing relevant and timely insights.
3. Safety and security: Outsourcing partners conduct work on proven systems and processes. Their established infrastructure system also translates into enhanced security for data, and processes such as encryption, authorized access, and password protection methods.
4. Better adherence to timelines: Backed by expertise, experience, and proven methods, outsourcing partners can help businesses adhere to deliverables and timelines better. This improves the overall quality of work, helping drive better business prospects.

Extending service offerings

Outsourcing partners can help businesses extend their service offerings without hassles or capital expenses. One of the benefits is that services can be extended without the concern of incurring additional capital expenses or needing first to set up systems. Businesses can expand their existing services and solutions based on the capabilities of the outsourcing partner.

Growing the business

An outsourcing partner can help shift the administrative burden of managing a high-volume of work when using in-house resources to experts who can deal with it better. This allows resources to focus on the more significant task—business building and opening additional revenue channels to fuel growth. Furthermore, with existing deliverables and business operations taken care of, companies can focus more attention on pursuing new businesses.

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