There is a clear advantage to outsourcing your bookkeeping, accounting, and finance functions.  The time of entrepreneurs is very valuable & critical to the growth of company. The time is not best used in managing or performing finance and accounting or HR functions.

Put simply, an hour spent on an internal process is an hour lost to generating revenue. Additionally, outsourcing brings lower resourcing costs, better controls, and improved processes. Outsourcing Accounts would allow businesses to focus on revenue generation instead of worrying about issues emanating from accounting processes and systems.

People can be of the impression that outsourcing reduces “control” over the accounting function. In fact, management has enhanced control when it can spend time analysing business information instead of processing transactions and managing daily tasks. Real control is understanding revenue, costs, and profits generated by individual products/services, locations, sales persons, departments, and customers, etc.

There are 6 key reasons to outsource bookkeeping, accounting and finance functions:

1. Convert fixed costs into variable costs. Companies can hire the expertise needed, on requirement basis and pay only for the hours of service used.
2. A cost effective alternative to hiring and developing accounting departments of experienced people. In case of staff turnover, the same can be replaced in shortest possible time due to various floater staff.
3. An easier way to undertake ad hoc projects within finance. For example, systems conversion (E.g., Converting from Tally to SAP, etc.) year-end audit preparations, tax planning, etc.
4. Offers deep technical strength to deliver comprehensive resources and best practices to deliver objective, high-value financial and management consulting. For example, software revenue recognition implementation, M&A due diligence, valuation services.
5. Accurate financial statements on a timely basis to provide business intelligence to run the business, report to external investors and banks. This helps company in the long run when there is a requirement of funds or government scrutiny of books.
6. Improved Compliances:  The company can have experts who can have more detailed & up to date knowledge on the complex subjects like Tax, Audits, etc. Chances of lapses are significantly reduced.

Outsourcing is that you can keep pace with advanced technology solutions at lesser costs. A proficient finance and accounting outsourcing company may be able to provide the improved technology for less than the cost of the firm’s old technology. The costs could be even lesser than the upgrade costs that the business would have to invest in.