Many small businesses, start-ups, and entrepreneurs find it challenging to hire qualified professional accountants in Sri Lanka. Bookkeeping is a critical function for any accounting firm; however, it’s time-consuming and monotonous. Delegating bookkeeping tasks to a third-party provides freedom of burdening your staff and to focus on more important work.
So, if you are a business owner or the accountant of the business and considering to outsource bookkeeping function, here are the top 10 benefits of outsourcing accounting & bookkeeping:
1. LOWER OPERATIONAL COSTS, INCREASED NET PROFIT MARGINS
By outsourced bookkeeping, you get access to highly skilled professionals without rigorous recruitment processes and save up to 50% of costs. There are no training costs, holiday covers or sick leaves that you need to take care of. You only pay for the work done with a substantial reduction in costs. Most companies can offer their services at lower cost rates (typically due to lower labor costs at their location).
2. ACCESS TO FINANCE AND ACCOUNTING EXPERTISE
Outsourcing gets the specialized knowledge your company needs. Outsourced firms employ highly trained accountants and qualified finance professionals. They don’t have distractions like other people and can bring the best practices to you.
3. SAVES TIME
Outsourcing your business’s bookkeeping operations frees up valuable time that can be put into bettering the company. Backend office functions can be a heavy distraction from the day-to-day running of things. Having your bookkeeping in-house can lead to a conflict of interests.
4. ACCESS TO BETTER TOOLS & PROCESSES
If you are trying to keep overhead costs minimal, outsourcing your accounting and finance function can help you save money on more advanced tools. Accountants will use these tools and bring processes into your organization. This is just one way of building efficiency in both your business and team. As a small company, you’ll be trying to piece things together with band-aids and duct tape. You must be agile and grit.
5. ACHIEVING ERROR FREE RESULTS
When an in-house bookkeeper manages your books, you are more likely to accept margin errors in the initial days. With outsourced bookkeeping, you don’t have to go through this adjustment period.
6. ACCESS A ROBUST CLOUD-BASED BOOKKEEPING SYSTEM
Outsourcing your bookkeeping operations gives you more access to the top tools in the industry. The best outsourcing companies operate on a completely online interface, which helps streamline processes and handle everything efficiently. Since all the work is managed on a cloud-based system, you can access your data anytime and anywhere. This streamlined collaboration enables you to add your expenses/income and examine your finances efficiently.
Most of the accounting service providers are highly qualified in the automation tools such as Quickbooks, Sage, Visma, Xero, Microsoft Dynamics, SAP and more.
If your accountants are still using only Excel sheets – you are wasting your time and money.
7. ACCESS TO DETAILED FINANCIAL REPORTS
With a click of a button, you get access to all your financial reports that allow you to dive deep into the specifics and make informed decisions. You can review your profits & losses, balance sheet, and cash flow history. Because the bookkeepers have a defined and structured method of recording information, going through the reports becomes very easy and quick.
With better financial reporting, you can make more informed decisions that yield better results.
8. PREPARE FOR TAX SEASON WITH MINIMUM EXTRA EFFORT
Highly skilled professionals will help free up your in-house professional for the tax season. And then, when the time comes, they’re able to file tax returns conveniently, optimally and accurately. A well-organized bookkeeping management system lays a strong foundation for a productive tax season without unnecessary stress.
9. SCALABILITY THAT ENABLES YOU TO GROW
Outsourcing can give you options to scale with an array of engagement models like Block-of-hours, and Pay-as-you-go or other flexible models. During the peak season, you can scale up the outsourcing team, and when the workflow is slow, the unit can be slimmed down. Outsourcing provides flexibility that in-house bookkeepers just can’t provide.
10. MORE FOCUS & BETTER GUIDANCE
Outsourcing is a great way to have full-time knowledge on your team without having to pay for it around the clock. The management can focus on growing the practice and retaining more clients, while the outsourced team helps you focus on maintaining ‘client books’. Not only managing bookkeeping, but the outsourcing experts will also guide you in several aspects of accounting. Their insights can be highly beneficial to take your firm to the next level.
These are the ten benefits of outsourcing your accounting and bookkeeping, so keep them in mind as you consider this option. Even under these tough economic times, we are optimistic. It can be helpful for you as you grow and get through this challenging period in the economy.
If you’re interested in learning more about accounting and bookkeeping outsourcing, schedule a consultation with us. You can check our accounting and bookkeeping services or leave us a quote.
Other ways to contact us,
Call: +94 777 870 464 / +971 5043 53515
KLOUDAC Global is a dedicated expansion of KLOUDAC, a recognized accounting firm with branches in Dubai, London & Colombo with 15 years of service experience. KLOUDAC Global mainly focuses on back office accounting with a whole package of services such as Financial Consultancy, Business setup, Audit and assurance services, Taxation services, Recognized accounting software, and more.