Most businesses place continuous growth year after year as a top priority for their organization. To help support this goal, most organizations place a lot of time and resources into sourcing the best sales and marketing teams while putting together a solid strategy to help them scale.
However, part of ensuring long-term, sustainable growth is also making sure you have a strong financial foundation for the business, which requires a professional accounting team by your side.
The challenge many organizations face, though is being able to find skilled accounting specialists in their local talent pools. This is where outsourcing your accounting needs can be a real benefit to growing companies.
Improved Cost Savings and Efficiency
One of the primary benefits of outsourcing accounting processes is the significant cost savings that companies can experience. The truth is, hiring and managing an in-house accounting team can be a significant investment for the organization, which can be especially difficult in newer businesses with restricted budgets.
The Real Costs of In-House Accounting
While the first cost a business might consider when managing their accounting processes in-house is salaries, this is just one of many expenses to consider. There is also the expense of employee benefits, dedicated office space, recruitment costs, and the need for ongoing training and support.
For organizations needing to spread their resources into multiple departments, the financial investment required for an in-house accounting team can quickly limit the ability to scale other critical elements of the business.
How Outsourcing is a More Cost-Effective Solution
When you decide to outsource your accounting teams and critical functions, it can help eliminate the need to resource a full-time role along with associated annual salaries and benefits and instead allow for a more scalable staffing solution.
Outsourced agencies also typically have economies of scale, allowing them to provide businesses with much more competitive recruitment pricing structures that could be difficult to manage independently.
Add to that the fact that when outsourcing, you only need to pay for the actual services you need, and you avoid overprovisioning your department while hoping for a long-term return on your investment.
Better Access to Specialized Expertise
When you decide to work with an accounting outsourcing agency, you’re able to gain access to a wide range of talent with unique skills and industry-specific knowledge. This makes it possible for businesses to create a powerhouse accounting team within their budget that would be very difficult to replicate affordably in-house.
By partnering with a qualified outsourced accounting provider, businesses can gain access to the following specialized accounting personnel:
- Tax Specialists – Businesses can find many qualified tax specialists who are well-versed in tax laws and industry regulations when working with an outsourcing agency or firm. This helps them reduce their yearly tax burdens while helping them navigate more complex tax situations in their business.
- Financial Analysts – Outsourcing can give organizations better access to financial analysts who can provide valuable insights to businesses based on the data they collect. They can also help companies unlock new opportunities to improve various areas of the business while producing accurate financial projections.
- Compliance Officers – A large benefit of using an outsourcing agency to find accounting staff members is the ability to find better-located compliance officers who have specialized training in navigating various industry-specific regulations. This can help organizations ensure they’re staying compliant with strict standards and managing their risk more effectively.
Renewed Focus on Core Business Growth
Outsourcing an accounting team can prove to be a game-changer for businesses, allowing them to free up valuable internal resources that can be used for more strategic elements of the organization.
Better Time and Resource Optimization
When a business eliminates the need to handle internal recruiting processes and manage the ongoing development of an in-house accounting team, it can focus on more mission-critical aspects. Companies can then reinvest these savings into their revenue-generating activities or improve their product development and customer service strategies.
Access to More Specialized Services
Many times, organizations need to sacrifice certain initiatives based on the competencies of their in-house teams. It can be challenging to find a “unicorn” accounting professional who’s able to handle all accounting responsibilities effectively while also completing high-level activities like long-term financial planning and coordinating with banks and investors.
By outsourcing, companies are able to access these specialized services on an as-needed basis, helping to optimize their resource allocation.
Increased Scalability and Flexibility
Outsourcing can bring a number of benefits to an organization, especially when it comes to improving its scalability and flexibility.
Scaling Up or Down More Easily
When you work with an outsourcing agency, you’re able to create a customized staffing solution for your business. This can be incredibly useful when the business is experiencing periods of rapid expansion or seasonal fluctuations. This also ensures the company only needs to resource what they need at that specific point in time, avoiding the need to overpay for necessary staffing.
Seamless Integration with Existing Systems
Another benefit of working with a qualified outsourced accounting provider is their ability to provide a seamless solution with existing software and systems. This helps to minimize disruptions in business operations and helps to ensure a smoother transition when using real-time collaboration and data-sharing solutions with the provider.
Financial Support That Grows with Your Business
An organization’s accounting needs will change gradually as it begins to scale. While a business’s bookkeeping needs may be minimal in the beginning, this can change quickly when more partners and employees are onboarded. Outsourced accounting agencies help provide the expertise and resources necessary to provide your accounting department exactly as needed.
Help Your Business Grow With Specialized Outsourcing Partners
There’s no question that outsourcing your accounting teams can provide several benefits for your organization. By offering significant cost savings compared to managing a team in-house and providing access to specialized accounting roles, outsourcing can give organizations the flexibility and expertise they need to grow their business successfully.
The key, however, is to ensure you choose the right outsourcing provider. It’s important to take your time researching partnerships that are aligned with your organization’s needs and find agencies that are reliable in their services. By working with a qualified outsourced accounting firm, you’ll gain the critical staffing resources you need to help your organization achieve all its long-term business objectives.
Author Bio Below:
Author: Jaiwen Parker
Jiawen Parker is a licensed CPA in California and CFO of Sound Decisions. Jiawen comes from a technical accounting and audit background of 15 years. Jiawen acts as the SME for all accounting positions and consults with the team on testing and examination of different area candidate skills.
