In the small and medium-sized accounting business firms, it is becoming a profitable trend to outsource bookkeeping services. The outsourced bookkeeping services have numerous benefits that have been understood by the accounting firms and thus, they are rapidly using outsourced companies to improve their bookkeeping operations.
At CapActix, we have advocated outsourced bookkeeping services on numerous stages because this practice brings flexibility and scalability to the business. Offshore bookkeeping services for CPA firms have been recommended by experts, but some of the CPAs are still hesitant about using these services because they think –
- It is hard to establish a control while outsourcing
- Offshore bookkeeping services can easily tamper
- Outsourced services are not up to the mark
- Latency can be a great trouble
Now, all these reasons are excuses because outsourcing accounting services is a very safe and secure mode of increasing your business productivity. Moreover, if you are still believing in all these nonsense myths, then you need to read out the reasons for outsourcing bookkeeping work.
10 Reasons for Outsourcing Bookkeeping Services
#1. To save up your resources
For small CPA firms, it is a tricky job to stick to their tight budget and provide high-quality services to their clients under the small budget. Small companies can’t hire professional and experienced staff as they can’t afford to pay their salaries. However, if they don’t provide high-quality services to their clients, then they won’t be able to establish a strong customer base. So, it is a tricky situation for small companies, but if they delegate their bookkeeping work, then they can save up their monetary resources as outsourced companies charge less as compared to trained staff.
Reason – To provide high-quality professional services under your budget.
#2. To use bookkeeping technology
Today’s accounting industry revolves around the latest technology and software. Without the assistance of the latest accounting software, CPA companies won’t be able to provide flawless and efficient services to their clients. However, it is very difficult for new accounting company to purchase the latest bookkeeping software and provide high-quality virtual bookkeeping services to their clients. To update software, companies have to make huge investments and even have to provide training to their staff. But, the staff of outsourced bookkeeping companies is already and have access to the latest bookkeeping software.
Reason – To provide a flawless automated bookkeeping facility.
#3. To preserve time
Bookkeeping is one of the most time-consuming accounting works that require an optimum amount of dedication and skills. Accounting company has to dedicate most of their staff to create the books of their clients as they are the foundation of the accounting work. But this sucks up lots of accountant’s time which they can utilize to grow their business. So, offshore accounting services for CPA firms are a boon as they can use the special skills of their staff towards important management tasks.
Reason – To utilize expert services to increase the efficiency of the business.
#4. To have skills on your side
Bookkeeping is considered as one of the basic steps out of all the other accounting procedures. So, without any doubt, you need to utilize professional services to create books of your clients so that all other accounting processes won’t get affected by the poor quality of books. By having an outsourcing company in your hands, you can keep professionals by your side all the time and make sure to offer high-quality services to your clients.
Reason – To have professional bookkeepers with you all the time.
#5. To be more focused
Generally, in small accounting companies, all work is handled by a small group of professionals so it is difficult for them to stay focused on improving and growing their business – when they are stuck in the pile of books. Thus, by delegating bookkeeping to outsourcing companies, you can focus your attention on growing your business by paying attention to your client’s needs and formulating marketing strategies to acquire new clients.
Reason – To stay focused and use internal resources to grow business.
#6. To reduce errors
If you are an accountant, then you must know the problem that occurred due to one accounting error. That’s why bookkeepers need to recheck their entries multiple times to ensure that nothing is out of order. But again, it is a time-consuming task and chunk out lots of time of your team. However, by outsourcing services, you won’t have to ever worry again as outsourced companies will fully check and recheck books before submitting them.
Reason – To provide errorless services to your clients.
#7. To reduce frauds
Fraud is an unfortunate result in many small to medium-sized businesses with one person at the helm of accounting. That’s because it’s easy to manipulate the books or have a fake expense go unnoticed for months, or even years. But, when you are outsourcing, then bookkeepers have no direct interest in your business so they won’t waste time committing frauds.
Reason – To eliminate any chance of fraud and biased behaviour.
#8. To reduce overhead costs
If you hired an in-house bookkeeping staff to maintain your books, then you don’t have to only pay their salary. You have to pay for their lunch, desktop, computer, accounting software, and other employment benefits as per the prevailing employment rules. This will add up the extra burden on your business and increase your overhead costs. But, if you have hired an outsourced company, then you just have to pay an agreed amount in the lump sum.
Reason – To make your business profitable by reducing additional costs.
#9. To reduce some stress during pressure seasons
For accounting companies, tax season and year-end services are one of the two most crucial pressure points when they need as much as help they can get. This time of the year is crucial for accounting companies because they have to close the books of their clients and prepare their tax reports. So, to reduce some of the stress from their in-house staff, using outsourced bookkeeping services is a very good option because if your staff is too stressed, then they can’t provide quality services.
Reason – To smoothly run business operations during the tax preparation time and year-end services.
#10. To help out during an emergency
If you’re a house bookkeeper who feels sick and won’t be able to complete work on the given deadline, then this will dent on your reputation. Now, due to the unavailability of your one employee, you can’t stop the operation of your entire company and neither you can hire a new employee for a few days. So, in this kind of emergency, you can call up outsourced companies and hire their services for the time being.
Reason – To tackle emergencies smoothly.
So, CPAs there are multiple reasons to outsource bookkeeping services and make your business profitable. You just need to properly utilize the outsourced bookkeeping and you will be able to get focused, cost-effective, professional and high-quality services instantly.